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We take a look at the SENS released by Bidcorp in which the group provides a trading statement for the interim period ending December 2019 and the group will show a modest 3% to 5% increase in headline earnings per share.
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About Bidcorp (BID)
Bid Corporation Limited known as Bidcorp separated from Bidvest and listed on the JSE on Monday May 30 2016. The unbundling provides Bidvest shareholders with the opportunity to participate directly in Bidcorp’s foodservice operations, as well as enabling each of the businesses to achieve their respective strategic goals. Bidcorp will focus on realising the potential that exists in its current foodservice operations as well as acquisitive growth opportunities. Bidcorp is an international broad-line foodservice group, listed on the JSE, South Africa, and present in developed and developing economies in five continents. Focused on foodservice, the business comprises a mix of well-established leading and rapidly growing market positions, offering significant future upside. The profile of the customer base is strategically targeted to fully service the foodservice industry’s needs.
Bidcorp is a broadline foodservice group with a geographic reach encompassing over 34 countries on five continents. Bidcorp, operating as Bidfood in most geographies, has adopted a decentralised model of management which encourages the entrepreneurial spirit contained in each of its businesses. Each business is directly responsible for its product range, its buying and sales approach. Businesses in the different regions retain their local brand, tone of voice, look and feel specific to local culture.
Just like a truly great dish, a dynamic and successful foodservice partnership requires the right ingredients. As a leading distributor to the foodservice industry, Bidfood has come to understand this particular recipe intimately. It involves maintaining a balance between leading edge innovation and a consistent, reliable delivery of “the classics”. We offer a wide selection of local and internationally sourced products that have been tailored to suit all customer types – large and small. We believe that the key ingredients Bidfood brings together create a robust and forward looking framework for us to deliver the reliability, support and inspiration our customers have come to expect.
Bidcorp is a broadline foodservice group with a geographic reach encompassing over 34 countries on five continents. Bidcorp, operating as Bidfood in most geographies, has adopted a decentralised model of management which encourages the entrepreneurial spirit contained in each of its businesses. Each business is directly responsible for its product range, its buying and sales approach. Businesses in the different regions retain their local brand, tone of voice, look and feel specific to local culture.
Just like a truly great dish, a dynamic and successful foodservice partnership requires the right ingredients. As a leading distributor to the foodservice industry, Bidfood has come to understand this particular recipe intimately. It involves maintaining a balance between leading edge innovation and a consistent, reliable delivery of “the classics”. We offer a wide selection of local and internationally sourced products that have been tailored to suit all customer types – large and small. We believe that the key ingredients Bidfood brings together create a robust and forward looking framework for us to deliver the reliability, support and inspiration our customers have come to expect.
SENS released earlier today regarding the trading environment of the group
TRADING STATEMENT
In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Limited, Bidcorp is required to publish a trading statement as soon as it is satisfied that a reasonable degree of certainty exists that the financial results for the 6 months ended December 31 2019, will differ by at least 20% from those of the previous corresponding 6 months ended December 31 2018. Shareholders are advised that:
As a result of the capital write-offs incurred in the discontinued operations in the comparative period, basic earnings per share (“EPS”) from total operations is expected to be between 20% (674,5 cents per share) and 22% ( 685,8 cents per share) higher than the comparative period (2019: 562,1 cents per share) and headline earnings per share (“HEPS”) from total operations is expected to be between 4% (707,7 cents per share) and 6% (721,3 cents per share) higher than the comparative period (2019: 680,5 cents per share).
In respect of continuing operations, HEPS is expected to be between 3% (721,2 cents per share) and 5% (735,2 cents per share) higher than the comparative period (2019: 700,2 cents per share) and EPS is expected to be between 3% (719,7 cents per share) and 5% ( 733,6 cents per share) higher than the comparative period (2019: 698,7 cents per share), reflecting the challenging trading environment in many of our operational geographies. It is expected that Bidcorp will release its half-year results for the six months ended December 31 2019 on or about February 19 2020. The information above has not been reviewed and reported on by the Group’s auditors.
Date: February 17 2020 Johannesburg
Sponsor: The Standard Bank of South Africa Limited
In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Limited, Bidcorp is required to publish a trading statement as soon as it is satisfied that a reasonable degree of certainty exists that the financial results for the 6 months ended December 31 2019, will differ by at least 20% from those of the previous corresponding 6 months ended December 31 2018. Shareholders are advised that:
As a result of the capital write-offs incurred in the discontinued operations in the comparative period, basic earnings per share (“EPS”) from total operations is expected to be between 20% (674,5 cents per share) and 22% ( 685,8 cents per share) higher than the comparative period (2019: 562,1 cents per share) and headline earnings per share (“HEPS”) from total operations is expected to be between 4% (707,7 cents per share) and 6% (721,3 cents per share) higher than the comparative period (2019: 680,5 cents per share).
In respect of continuing operations, HEPS is expected to be between 3% (721,2 cents per share) and 5% (735,2 cents per share) higher than the comparative period (2019: 700,2 cents per share) and EPS is expected to be between 3% (719,7 cents per share) and 5% ( 733,6 cents per share) higher than the comparative period (2019: 698,7 cents per share), reflecting the challenging trading environment in many of our operational geographies. It is expected that Bidcorp will release its half-year results for the six months ended December 31 2019 on or about February 19 2020. The information above has not been reviewed and reported on by the Group’s auditors.
Date: February 17 2020 Johannesburg
Sponsor: The Standard Bank of South Africa Limited
Bidcorp (BID) share price performance
The screenshot of Bidcorp share price performance taken from Sharenet below shows that BID has been moving gradually higher but has not exactly shot the lights out for their shareholders.
- Last Week: 2.51%
- Month to Date (MTD) : -1.14%
- Year to Date (YTD): -0.53%
- 1 year move: 12.1%
Bidcorp (BID) share valuation (as we valued the group on 20 February 2019)
So what are Bidcorp shares worth, based on their revenues, net profits, dividend yield and their cash generation capabilities and the markets and geographies they operate in? Based on Bidcorp's financial results, and their future prospects we value the company's shares at R303.81 (at the top end of our valuation model). So trading at R289 it is relatively close to our top en valuation is believe long term investors currently holding it should continue to do so, and those looking to get in should look to get in at a about 15% below our top end valuation of R303, so look to get in at around R270 levels if possible