Bidvest hikes dividend as all divisions deliver trading profit growth

Bidvest says the improved momentum reported at half-year accelerated into full-year earnings, with every division delivering trading profit growth in its financial results for the year ended 30 June 2026.

This is evident from profitability to cash generation reported in a Sens on Monday, where the group posted revenue growth of 2.9% and “pleasing” gross margin expansion. Its trading profit margin expanded 50 basis points to 10%.

Cash generated from operations increased by 16.9%, from R2.5 billion to R17.2 billion. Free cash generated increased nearly 27%.

This, together with strong treasury management, puts the trading and distribution group at a gearing ratio of 1.9x (from 2.2x in the previous reporting period) without the planned capital recycling proceeds.

Continuing operations headline earnings per share (Heps) grew by 6% to 1 864.2 cents, while group basic earnings per share (EPS) increased from 1 785.5 cents to 1 808.4 cents.

“This performance reflects clear delivery against our FY2026 (financial year 2026) commitments,” the company says.

Read: Bidvest lifts interim earnings, raises dividend

The group declared a final dividend of 483 cents per share, 6.6% higher year on year. The net dividend sits at 386.4 cents, withholding tax.

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Prospects

Bidvest says it enters the 2027 cycle with positive operating momentum and a strengthened platform for sustainable growth.

The group’s near-term priorities remain unchanged: accelerate organic growth, enhance cash generation, reduce leverage and rebuild returns.

“We acknowledge the impact of competitive pricing and related margin pressure, energy price instability, and muted industrial demand in South Africa.

“The growth outlook will, however, be supported by structural demand in hygiene, TIC (testing, inspection and compliance) services, hospitality and inbound tourism,” the group says.

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The JSE-listed firm adds that capital allocation will remain conservative, with no material M&A (merger and acquisition) planned in the near term.

Free cash flow, disposal proceeds and capital recycling is set to continue to be directed to reducing debt, while growth capital will be allocated to expanding country-critical port terminal capacity, mobilising new contracts and building scale in North America.

The board has approved R2.5 billion growth capital expenditure in freight.

This capex relates to the construction of a second LPG terminal in the Port of Richards Bay and expanded bulk grain and liquid capacity in the Port of Durban.

Construction will commence once close out conditions have been finalised.

Read: New crisis at Durban port prompts calls for urgent action

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