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Operational reviews – Bidvest Bakery Solutions

Bidvest Foodservice

Bidvest Food SA
Nigel Phillips: Managing director

Manufacturer and distributor of baking ingredients and equipment.  
Nigel Phillips – Managing director
Nigel Phillips – Managing director

Highlights

Blue arrow Double-digit turnover growth particularly in craft market
Blue arrow Margin pressures experienced but volume growth achieved to counter this
Blue arrow PBIT growth despite margin and cost pressures
Blue arrow Strong performance in the bakery pre-mix plant on the back of efficiencies and strategic buying
Blue arrow Long-term yeast supply agreement continues to benefit the business
Blue arrow Strengthened sales focus with restructuring of national team and leadership.

Innovation and new investment

Blue arrow New product developments across all markets
Blue arrow Continual upgrade of the bakery pre-mix plant.

Disappointments and challenges

Blue arrow Underperformance in certain regions
Blue arrow Stock theft and damages.

Changes in the operational environment

Blue arrow Increasing pressure on payroll and rising utilities and fuel costs – addressed by continual analysis of the way we do business and further elimination of costs together with supply chain focus.

Risk and response

Blue arrow Strong growth of ready-made products, frozen products and full mixes incorporating flour – addressed by transformation into a value-added business with increased sales focus and innovation.

2015 targets, objectives and factors affecting future results

Blue arrow Double-digit revenue and profit growth with increased sales focus and supply chain efficiencies
Blue arrow Service level improvements targeted on the back of the continual upgrade in the pre-mix plant and focused supply chain management.

Material issues and performance

MATERIAL ISSUE   WHY IT IS IMPORTANT AND STRATEGIC OBJECTIVES KPIs AND TARGETS PERFORMANCE AGAINST TARGETS AND ACTIONS GOING FORWARD
Performance

Maintain consistent financial performance

   Why:
blackarrow Global economic challenges
blackarrow Volatile foreign exchange rates create market instability
blackarrow Lower consumer confidence

Objective:

blackarrow To maintain profitability
blackarrow Sales growth
blackarrow Trading profit increase
blackarrow Real profit growth
blackarrow Double-digit revenue growth in craft market

Actions:
blackarrow Margin pressures countered by volume growth, leading to PBIT growth
blackarrow Strong performance in the bakery pre mix plant on the back of efficiencies and strategic buying
People

Exceed corporate
citizenship expectations

   Why:

blackarrow It is important to demonstrate our commitment as a good corporate citizen by consistently exceeding local and international governance, compliance and broader sustainability expectations
KPIs:

blackarrow JSE SRI performance standards
blackarrow CDP performance standards
blackarrow Governance standards (King III)
Actions:
blackarrow Commitment to transforming the workplace in terms of employment equity profile with good progress to date
Maintain rigorous safety standards
   Why:
blackarrow It is our obligation to ensure the safety of our employees

Objective:

blackarrow Ensure all businesses demonstrate exceptional levels of safety performance
KPIs:

blackarrow Injury rate
blackarrow Lost-day rate
blackarrow The injury rate decreased from 6,24 to 5,65 per 200 000 hours worked in 2014.
blackarrow The lost-day rate (per 200 000 hours worked) due to injuries remained unchanged at 6 in 2014.
Promote employee health and satisfaction

Enhance talent attraction and retention
   Why:
blackarrow People have a right to be healthy and happy. As employers we assist our staff in this regard, which contributes to a more productive and positive work experience
blackarrow To improve talent attraction and retention

Objective:

blackarrow Ensure all businesses demonstrate exceptional levels of safety performance
KPIs:

blackarrow Resignation rates
blackarrow Absentee rates
blackarrow The resignation rate increased from 3,7% to 5,2% in 2014
blackarrow Absentee rates remained steady at 1,23% compared with 1,38% in the prior year
Promote skills development
   Why:
blackarrow This is an important national issue that is felt acutely at business level
KPIs:

blackarrow Training spend per employee
blackarrow Training hours per employee
blackarrow Average annual training spend per employee increased from R2 980 to R3 944 in 2014
blackarrow Average annual training hours per employee increased from 14 to 16 hours in 2014
CSI
   Why:
blackarrow This is important at national and regional level and business can play a vital role
KPIs:

blackarrow Training spend per employee
blackarrow Training hours per employee
blackarrow Average annual training spend per employee increased from R2 980 to R3 944 in 2014
blackarrow Average annual training hours per employee increased from 14 to 16 hours in 2014

Material issues and performance

Product

Minimise product
impact and ensure food safety

   Why:

blackarrow Foods have a high environmental and health impact. It is important to ensure food products are responsibly and safely sourced, manufactured and distributed
KPIs:

blackarrow Customer complaints
Actions:

Food and health and safety systems functioning in all areas of the business

Performance:

Plant is ISO 22000 accredited and all trading branches have passed audits by Intertek FSA in terms of good distribution practice

Planet



Reduce environmental impacts

  

Why:

blackarrow Environmental issues, such as climate change, pollution and water scarcity
blackarrow These issues also potentially threaten food supplies

Objective:

blackarrow To reduce our impact, educate employees, and work with suppliers and offer solutions to customers to help them reduce their impacts
KPIs:

blackarrow Water used and water intensity
KPIs:

blackarrow Water usage increased from 9 607 to 12 500kℓ in 2014

Stakeholder engagement

STAKEHOLDERS   OBJECTIVE AND ENGAGEMENT METHOD (AND FREQUENCY) KEY ISSUES IDENTIFIED KEY ACTIONS TAKEN AND PLANNED
(more detail may be provided in material issues tables and elsewhere)

People

Employees (full-time and contract)

   Objective:

blackarrow Improve employee relationship and satisfaction

Methods:

blackarrow Employee surveys (annual)
blackarrow Anonymous feedback forms (ongoing)
blackarrow Newsletters
Key issues:
blackarrow Remuneration and benefits, being informed about corporate strategy, employee skills development, employee wellness, local economic development and specific employer/employee relationship issues

Issues considered material:

blackarrow Employee wellness, skills development and retention

Issues considered material:

blackarrow Employee wellness, skills development and retention
Actions:
Focus on employment equity, wellness and relationships

Unions

  

Objective:

blackarrow Maintain good union relationships

Objective:

blackarrow Remuneration and benefits, corporate strategy, employee skills development, employee wellness and local economic development

Objective:

Full time clinic in Longmeadow for plant and trading business
Product



Suppliers

  

Objective:

blackarrow Maintain good relations
blackarrow Understand issues and resolve these together
  Actions:
Appointment of supply chain executive and planning department
Customers
  

Objective:

blackarrow Understand evolving needs, expectations and issues
  Actions:
Increased customer focus with restructure and appointment of sales executive

People



Communities

Local communities
Particularly community subsectors (eg sports, education, infrastructure)
 

Objective:

blackarrow Better understand and collaborate with the communities in which we operate

Key issues:

blackarrow Local economic development and employment opportunities, education (schools), skills development, health and environment

Material issues:

blackarrow Socio-economic development and community involvement
Actions:
Embarking on learnerships programme in 2015

Planet



Environmental stakeholders

(eg environmental NGOs, government agencies, communities, research/academic organisations)
 

Objective:

blackarrow Understand issues, needs and expectations
  Participate in SA Chamber Of Baking
Registered office South Africa
Bidvest House
18 Crescent Drive
Melrose Arch
Melrose
Johannesburg
2196
South Africa
  
Website: www.bidvest.com
Telephone: +27 (11) 772 8700
Email: info@bidvest.com

 
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