Wrap Text
Capital Markets Update
Bid Corporation Limited
(Incorporated in the Republic of South Africa)
Registration number: 1995/008615/06
Share code: BID
ISIN: ZAE000216537
(“Bidcorp” or “group” or the “company”)
CAPITAL MARKETS UPDATE
Shareholders are advised that Bidcorp management will be updating the market on the trading
environment and group’s trading performance for the four months ended October 31st 2026 at
11am today, November 10th 2026, in accordance with the group’s obligation for continuous
disclosure in terms of the JSE Listings Requirements. Details of the online webinar are
available on the group’s website for those wishing to participate.
Trading performance for the 4 months to October 2026
The group has delivered a solid trading performance for the first four months of F2027,
achieving a positive start to the financial year. Trading conditions tightened across the group’s
markets as the period progressed, impacted by subdued consumer spending, increased cost
pressures particularly in energy and fuel, geopolitical uncertainty, and weakening underlying
economic growth.
Constant currency reporting remains the most appropriate measure of the group’s underlying
operational performance, given that approximately 95% of Bidcorp’s activities are conducted
outside South Africa.
For the four months ended October 2026:
• Group revenue increased by 2,4% in constant currency reflecting predominantly real
volume growth, limited contributions from recent bolt-on acquisitions, and negligible
food inflation across the basket. Revenue fell by 4,3% in rand terms reflecting negative
average currency translation movements which have had an impact of 7,7% on the
group’s revenue.
• Trading profit increased by 8,2% in constant currency and 1,6% in rand terms,
supported by pleasing performances in Europe and the United Kingdom, and
improvements in Australasia and selected Emerging Markets businesses. Disciplined
pricing, customer and product mix management, procurement initiatives, and continued
cost control have delivered stronger margins.
• Headline earnings per share (HEPS) has increased pleasingly by around 10,0% in
constant currency and 3,2% in rand terms.
Overall market conditions
Consumer activity across the group’s markets has remained subdued, with customers being
selective as they adapt behaviours to the prolonged and now heightened cost-of-living
pressures. While food inflation remains at modest levels, perhaps even deflationary (although
high in a number of protein categories), core inflation remains persistent, impacting labour and
services. Energy and distribution costs are directly and meaningfully negatively impacted by
the continued geopolitical issues in the Middle East and Ukraine.
Following favourable summer conditions in parts of Europe and the United Kingdom during
July and August, activity levels through September and October showed signs of slowing, in
part due to the negative current economic environment, but also as the Northern Hemisphere
heads into its normal winter trading period.
Competitor intensity remains, particularly as markets experience low economic growth and
higher cost inflation. The group strategy remains focused on delivering high quality earnings.
Divisional trading performance to October 2026
Australasia (AU/NZ)
Australia delivered both revenue and trading profit growth for the four-month period.
Consumers remain price sensitive which continues to influence activity levels. The progressive
margin improvement in the second half of F2026 has continued and focus remains on
disciplined pricing, customer selection, margin protection, and operating efficiency. The
Australian economy remains tough, with continued interest rate rises and tax changes
dampening confidence.
New Zealand continued its recovery evident since Q2 F2026, supported by improved efficiency
and additional capacity. The business has had an encouraging start to F2027 both in revenue
and trading profits, bolstered by the Pacific Islands acquisition, effective September 1st, which
provides a solid platform for regional growth.
Europe (EUR)
Europe delivered reasonable growth for the four months, with revenue increasing by
approximately 2,0% and trading profit by 6,0% in constant currency. Food deflation of
approximately 1,0% was recorded to the end of September 2026.
Eastern Europe, namely Czech Republic and Slovakia, Poland, and the Baltics, continued to
deliver good trading profit growth, while Italy achieved better growth benefiting from increased
capacity and operational leverage. Trading in the more mature Western European markets
(the Netherlands and Belgium) improved marginally reflecting the flat economic environment.
Portugal continued to improve, while Spain remained focused on strengthening its operating
platform and growing returns.
United Kingdom (UK)
The United Kingdom delivered 3% revenue growth and trading profit growth in excess of 10,0%
(in constant currency) for the four-month period, in a market best described as flat. The core
Bidfood business continues to perform well, supported by market share gains (including new
business wins), free trade and national account growth, and improved margin management.
The fresh businesses delivered a resilient but flat performance. CFBG, the independent
focused operations, continued to be impacted by the weak hospitality environment in the UK.
Against declining consumer and business confidence and heightened operating cost
pressures, the business managed to improve gross margins despite the higher cost-of-doing-
business (CODB) from labour, energy, and fuel costs. October’s performance was impacted
by one less trading day, two major storms, and school holidays with no commensurate positive
impact in the hospitality sector. With the major infrastructure investment cycle almost complete,
management strategy is focused on improving returns through procurement initiatives,
category and customer management, and productivity and operating efficiencies.
Emerging Markets (EM)
Emerging Markets delivered flat revenue growth but a 14% trading profit improvement in
constant currency, reflecting the differing conditions across its’ markets. South Africa
maintained momentum supported by market-share gains, customer growth, and good
operational execution.
Greater China remained challenging, with sales under pressure although trading profits have
marginally improved. Singapore continued its recovery and Malaysia remained an attractive
growth platform. South America improved, with Chile performing well, and Brazil and Argentina
remaining resilient but flat. The Middle East was affected by the Iran conflict but activity levels
have rebounded towards normality, while Türkiye improved as it continues to build scale in an
inflationary environment.
Group financial performance to October 2026
Revenue for the four months ended October 2026 increased by 2,4% in constant currency
primarily reflecting real organic growth.
The group’s gross profit percentage increased to approximately 25,0%, compared with 24,0%
in the corresponding period, reflecting the benefits of constant strategic focus on procurement
benefits, product and customer mix, and Own Brand development through value-add activities.
The CODB was higher at 19,1% of net revenue compared with 18,5% in the corresponding
period. Operating costs remain well managed but are subject to pressure from labour, fuel,
energy, and other service-related inflation. These pressures were mitigated by productivity
initiatives while maintaining operating leverage.
For the period to October 2026, the group’s EBITDA margin before IFRS 16 was 6,6%,
improved against 6,1% in the prior period.
The estimated clean tax rate, excluding capital items and associates, is 27,0%, within stated
guidance but slightly higher than the previous period.
Bidcorp ordinarily absorbs working capital during the first half of its financial year and generates
working capital during the second half. Average working capital days for the first quarter of
F2027 were approximately 9,0 days, two days better than in Q1 F2026. Working capital
remains well managed and within expectation.
Net capital investment, including acquisitions, amounted to approximately R1,3 billion to
September 2026, some R1,3 billion lower than in the corresponding prior period. The group
continues to target capital expenditure within its normalised range of approximately 1,5% to
2,0% of revenue.
Free cash outflow for the first quarter of F2027 (normal for the group at this point in the financial
year) was in line with the comparative period, reflecting better operational cash generation,
higher working capital absorption, lower capital investments, but higher shareholder
distributions. Since July 2026, a further 681,000 shares have been repurchased at an
investment cost of R292 million.
Acquisitions and capital allocation
Bidcorp continues to pursue bolt-on acquisitions to broaden its geographic reach, extend its
product offering, and strengthen its position in existing markets.
Five bolt-on acquisitions have been concluded since June 2026, the most significant of these
being the Pacific Islands business, comprising a Fijian distribution operation and a New
Zealand-based export business. Several further opportunities remain under consideration,
noting that a number have been declined as seller expectations remain elevated in relation to
our views on value, particularly in the current market. The group remains alert to larger
opportunities and potential entry into new geographies, but these opportunities remain scarce.
Bidcorp will continue to apply disciplined criteria for valuation, strategic-fit, and returns.
Liquidity and debt covenants
The group’s balance sheet remains strong and conservatively geared. Bidcorp remains well
within all debt-covenant thresholds, with substantial liquidity headroom providing ongoing
financial flexibility. The loan maturities requiring refinancing during F2027 are in progress,
however, they do require different strategies in order to minimise funding costs.
Strong cash conversion, disciplined working capital management, and a normalising capital
investment programme continue to support the group’s liquidity, providing capacity to fund
organic growth, bolt-on acquisitions, and appropriate shareholder returns.
Technological investments
Technology remains an important enabler of pricing discipline, operational efficiency, data-
driven decision-making, and customer relevance. The group continues to invest in digital
platforms, systems architecture, artificial intelligence, and agentic-commerce capabilities. The
BidOne ecommerce replatforming project, to modernise the architecture, continues to progress
well, supporting flexibility and scalability to meet changing customer expectations.
AI applications are being tested and implemented in each business addressing forecasting,
procurement, pricing, inventory management, and customer service, with solutions deployed
where they demonstrate practical operating value.
Focus and opportunities
Bidcorp continues to refine its customer portfolio, expand its geographic reach, invest in
appropriate distribution capacity, and improve the quality and relevance of its customer
offering. Each business is at a different stage of development along the foodservice maturity
continuum, providing a range of organic growth, margin-enhancement, and operational-
improvement opportunities.
The group’s well-located and scalable distribution infrastructure, supported by ongoing
investment in fleet technology and systems, remains fundamental to delivering service
efficiency and resilience. The decentralised operating model enables local management teams
to respond quickly to changing market conditions while benefiting from the group’s scale,
experience, and shared intellectual property.
Outlook
Trading into early November has been in line with expectations, and the group is entering the
important festive trading period in many markets with early optimism. Indicators are that food
inflation, which has been largely absent from the trading environment to date, will start to reflect
in food prices within the next few months. The negative impact of the rand on the results is
projected to dilute over the rest of the financial year, assuming current currency levels prevail.
The opportunity set within the existing portfolio remains substantial, including further
improvements in the UK, continued growth across Europe despite the negative macro, ongoing
improvements in Australasia, maintaining momentum in South Africa, scaling the Malaysian
platform, improving the performance in Greater China and Spain, and utilising technology and
AI initiatives to deliver measurable operating benefits.
Geopolitical disruption and the consequential economic impacts continue to present risks to
consumer confidence, energy and fuel costs, and supply chain efficacy. Despite these risks,
management is confident that the group’s diversified geographic portfolio, strong local market
positions, decentralised operating model, and exposure to a wide range of both discretionary
and non-discretionary customers continue to provide opportunity and growth. The fundamental
growth drivers of the global foodservice industry remain positive.
Comment
Bernard Berson, CEO, commented as follows:
“The group has made a solid start to F2027 despite an operating environment that
remains challenging and uncertain. This performance reflects the strength of our
teams, the resilience of our diversified portfolio, and our continued focus on
disciplined execution and customer service.”
The information contained in this announcement has not been reviewed or reported on by the
group’s external auditors.
Date: November 10th 2026
Johannesburg
Sponsor: The Standard Bank of South Africa Limited
Date: 10/11/2026 10:26:06
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
