Johannesburg - Bidvest Group, South Africa’s second-biggest company by revenue, said full-year earnings rose 8.6 percent, beating estimates, as an increase in food-services profitability helped offset declines in some other units.
Earnings per share excluding one-time items climbed to R18.82 for the 12 months through June, the Johannesburg- based company said in a statement on Monday. That compares with an R18.63 average of 13 analysts’ estimates compiled by Bloomberg.
Sales gained 12 percent to R204.9 billion ($15.4 billion).
Bidvest has interests ranging from car dealerships to catering and pharmaceutical products.
The company is seeking to expand outside its home market, where the economy contracted in the second quarter for the first time in more than a year amid power shortages and faltering commodity prices.
“Across all our businesses, opportunities exist to add new product ranges and expand local footprints, via both organic and acquisitive growth,” the company said.
“Trading conditions in South Africa are likely to remain tough in a low-growth environment but management sees opportunity in the current market volatility.”
Trading profit at the food unit, Bidvest’s largest by sales, gained 25 percent to R4 billion. Bidvest South Africa, the second-biggest division, increased trading profit by 4 percent to R5.2 billion. The consumer-products and financial-services businesses both reported profit declines.
Bidvest shares have advanced 0.4 percent this year, valuing the company at 102 billion rand. That compares with a 0.9 percent rise on the FTSE/JSE Africa Top 40 Index.
BLOOMBERG