Bidcorp: S.Africa's Bidcorp annual profit jumps 15.5%

JOHANNESBURG (Reuters) - South African food services company Bid Corporation (Bidcorp) reported a 15.5% rise in full-year earnings on Wednesday, citing increased sales despite a turbulent operating environment. The company, spun off from Bidvest in 2016, said its headline earnings per share (HEPS), the main profit measure in South Africa, rose to 2,405.5 cents for the year ended June 30, from 2,082.9 cents a year earlier. The South Africa-based supplier of wholesale food and catering equipment has operations across Europe, Australasia and emerging markets such as the Middle East and China. It said its revenue rose by 15.1% to 225.9 billion rand ($12.71 billion). Its group trading profit increased by 15.9% to 12.2 billion rand. "These results are almost 100% organic growth, which is testament to how strong we are in the environment in which we operate," the group's CEO Bernard Berson told Reuters. He said the group achieved volume growth of nearly 6% after adjusting for food-basket inflation. Regional performances varied as Europe, Australasia and the UK were strong despite challenging economic conditions and reduced consumer spending. Meanwhile, its emerging markets segment experienced mixed results, with strong results from South Africa offset by weaker trading in China. Berson remains confident in the company's strategy and its ability to navigate these challenges. "We've always been a cost effective option, giving consumers more value conscious alternatives especially because we operate in a highly competitive environment," said Berson. In anticipation of interest rate cuts, the CEO said consumer spend will be more relaxed, leading to discretionary spending such as dining out. The company declared a final cash dividend of 565 cents per share, up 16% from the previous comparative period. ($1 = 17.7739 rand) (Reporting by Sfundo Parakozov; Editing by Sharon Singleton)