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 tested

Nimble decision making
A rapid response to costs
Strategic steps implemented in response to considerable demand changes
Ramped up innovation and various support interventions rolled out to assist our employees, communities

Bidvest has a solid platform from which it is capable of
#EmergingStronger

 

 

Returns have remained good

ROIC 400bps above weighted average cost of capital
 

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

1 Includes Steiner, Prestige, Noonan and PHS
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

2 Includes Bidair, Travel cluster, World Currency Card, service
contracts with hotel groups as well as Bidvest Car Rental in FY2019
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
     
     
Cash generative businesses that are relatively capital light
 
Highly regarded brands
     
     
Highly entrepreneurial and decentralised management teams supported by lean corporate office
 
Embrace change through innovation
     
     
32 years of consistent trading profit outperformance
 
Well positioned for international expansion in chosen niche  areas
     
     
Strong track record of efficient capital allocation
 
Aim for market leadership in operating sphere