Investment case
Bidvest is a diversified Group with exposure spanning most of South Africa's economy and structurally attractive hygiene and facilities management exposure internationally. Many of our products and services are everyday essentials, and therefore, derive defensive income. Focus on cash generation and returns are deeply rooted.
During the testing times of FY2020, Bidvest's mettle was testedNimble decision makingA rapid response to costsStrategic steps implemented in response to considerable demand changesRamped up innovation and various support interventions rolled out to assist our employees, communitiesBidvest has a solid platform from which it is capable of
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The new normal brings opportunities and challenges.Out-of-home hygiene awareness is elevated by the pandemic.This will drive development in and maturity of this industry. Bidvest's revenue exposure to the cleaning and hygiene industry is significant and growing. Cleaning & hygiene1 revenue contribution significant and growing
The closure of borders hit travel and related activities hard.The recovery is expected to be multi-year. Bidvest divested of its capital intensive businesses in this industry. Extensive restructuring of the remaining travel businesses lowered its cost base. Overall, the residual revenue contribution is small. Travel & hospitality² revenue contribution limited
Work-from-home calls for business agility and innovation in Services and Branded Products.Business development teams across the Group have already started to put forward value-added solutions to customers. |
Distinctive characteristics:
Blended portfolio of defensive, cyclical and growth assets |
Proven ability to quickly execute and assimilate acquisitions |
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Cash generative businesses that are relatively capital light |
Highly regarded brands |
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Highly entrepreneurial and decentralised management teams supported by lean corporate office |
Embrace change through innovation |
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32 years of consistent trading profit outperformance |
Well positioned for international expansion in chosen niche areas |
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Strong track record of efficient capital allocation |
Aim for market leadership in operating sphere |
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