Johannesburg - The Bidvest Group yesterday posted a 41.5 percent rise in operating profit for the year to June, exceeding R2 billion for the first time.
Attributable profit rose 19 percent to R1.24 billion. A dividend of R1.90 a share was declared, reflecting an increase of 12.3 percent.
Brian Joffe, the executive chairman of Bidvest, said the company had been through a period of consolidation, and management across the group had done a good job responding to a slowing economy and volatile market conditions.
Revenue rose 42.6 percent to R42 billion and earnings a share rose 16.9 percent to R4.15. Bidvest said it had achieved a compound growth rate in earnings a share over the past 11 years of about 29 percent.
"We have recorded these results despite an increase in the effective tax rate, which resulted in an additional charge of approximately R80 million to the income statement," Joffe said.
Cavan Osborne, an analyst at SCMB Securities, said Bidvest reported "a good set of results; all the key operating divisions delivered solid performances, with growth accelerating during the second six months".
He said Bidoffice was a star performer among the local operations.
"Another pleasing aspect of the results was improvement in profit shown by the two manufacturing divisions: Bidpack and Combined Food. Both divisions delivered real growth for the first time in a number of periods," said Osborne.
Bidvest had written off capital items amounting to R11.5 million. Joffe said the company was "acquisitive and opportunistic by nature and will continue to be so.
"We see South Africa as a growth market and still think it offers a lot of opportunities. We will try to take advantage of those opportunities as much as we can as a group."
He said the concept of bundling the group's products and services and cross-selling the packaged solution across the group had potential.
Joffe believed there was always room for consolidation: "One has to always look at improving so as to get the best out of the group's synergies."
Bidvest fell R1.39 to R43.10 in Johannesburg yesterday.