Bidvest Group Limited · JSE:BVT
Bidvest — FY2025 Earnings Presentation
41 slides from Bidvest's earnings presentation, 2025
Slide 1: Investor Presentation 2025
Investor Presentation 2025 for the year ended 30 June
Slide 2: Agenda
Agenda 01 Introduction Mpumi Madisa 02 Financial review Mark Steyn 03 Operational reviews Mpumi Madisa 04 Strategy & outlook Mpumi Madisa 05 Appendices
Slide 3: Introduction
Introduction
Slide 4: Executive overview
Executive overview Strong financial performance moderated Operating fundamentals remain intact with future earnings growth bolstered • 4 divisions reported trading profit growth of R731 million • Cash is king (+6.1%) • Cash generated by operations R14.7 billion (+5.8%) • Services SA +13.6% • Excelle
Slide 5: Financial highlights
Financial highlights • Resilient result Normalised headline earnings (cents) • + new business, more customer channels, incremental offerings, 2 000 acquisitions 1 500 • - bulk commodity weakness, price sensitivity 1 000 • Improved second half performance • 1H trading profit R6.3 billion (-0.5%) 500
Slide 6: Financial overview
Financial overview
Slide 7: Financial highlights
Financial highlights Continuing operations unless specifically indicated otherwise R billion Year ended 30 June 2025 Year ended 30 June 2024 Change Revenue 126.6 120.7 4.9% Gross profit margin 27.7% 27.9% ↓ Expense margin 18.5% 18.3% ↓ EBITDA 13.9 13.7 1.7% Trading profit 12.0 12.0 0.7% Trading prof
Slide 8: Income Statement analysis
Income Statement analysis • Revenue +4.9% (flat organic) • Growth in Services International, Services SA, Automotive and Branded Products supported by acquisitions • Price sensitive demand and new business, lower renewable sales, negative price mix • Gross profit +4.3% • Gross margin broadly flat at
Slide 9: Good cash generation
Good cash generation • R15.9 billion cash generated by operations before working capital • Working capital absorption of R1.2 billion, R0.4 billion less than prior year • Organic trade payables decrease due to lower inventory purchases • Need to reduce inventory days in select businesses • Cash conv
Slide 10: Enabling capital structure: debt quantum, tenure & rates
Enabling capital structure: debt quantum, tenure & rates Diverse debt sources • Net debt R32.9 billion 50 3 • R7.7 billion increase like-for-like YoY • Working capital investment (R1.2 billion) 40 • Acquisitions (R9.1 billion) • Proactively shifting debt funding 2 • Upsized domestic bonds at smaller
Slide 11: Enabling capital structure: debt quantum, tenure & rates
Enabling capital structure: debt quantum, tenure & rates Cash from operations vs net debt position Principle: Match borrowings 400 to earnings stream • Net offshore debt FY20 R17.2bn to FY25 R19.6bn 300 • Cash generated offshore grew from R1.1bn FY20 to R3.9bn in FY25 200 100 0 FY20 FY21 FY22 FY23 F
Slide 12: Enabling capital structure: debt quantum, tenure & rates
Enabling capital structure: debt quantum, tenure & rates Proactively manage liquidity Move with the interest rate cycle • Local bond issued at smallest spread and increased tenor • FY21 50% variable vs FY25 78% variable • Syndicated RCF/Term facility extended to Jun28 • Net finance charges +10.2%. H
Slide 13: Discontinued operations
Discontinued operations • Bidvest Bank, FinGlobal, Bidvest Life • Disposal processes • Signed SPA with Access Bank for Bidvest Bank. Awaiting regulatory approval • Closed FinGlobal disposal • Strong operational result • Bidvest Bank challenging top line and capital deployment. The deposit book remai
Slide 14: Divisional overview
Divisional overview
Slide 15: Services International
Services International
Slide 16: Services International CEO: Alan Fainman
Services International CEO: Alan Fainman Revenue Trading profit Trading margin EBITDA Funds employed ROFE R43.2bn R4.2bn 9.8% R4.9bn R2.8bn 152.0% +9.8% +12.1% +20ps +10.1% -1.9% +1 900bps • Another excellent result Hygiene services • Maiden entry into North America with Citron acquisition. • Strong
Slide 17: Freight
Freight
Slide 18: Freight CEO: Wiseman Madinane
Freight CEO: Wiseman Madinane Revenue Trading profit Trading margin EBITDA Funds employed ROFE R9.0bn R2.1bn 23.3% R2.4bn R5.1bn 41.2% +2.1% -10.0% -313 bps -7.4% +1 880% -1 320bps • Result in line with expectation • Local and global trade environment remains challenging, impacted • Almost no maize
Slide 19: Services SA
Services SA
Slide 20: Services SA CEO: Akona Matsau
Services SA CEO: Akona Matsau Revenue Trading profit Trading margin EBITDA Funds employed ROFE R12.7bn R1.4bn 11.4% R1.8bn R1.4bn 103.0% +7.9% +13.6% +57bps +11.5% +1 495% -90bps • Outstanding result with all four divisional clusters • Travel cluster experienced a mixed trading result. delivering go
Slide 21: Branded Products
Branded Products
Slide 22: Branded Products CEO: Gail Solomon
Branded Products CEO: Gail Solomon Revenue Trading profit Trading margin EBITDA Funds employed ROFE R13.0bn R1.1bn 8.6% R1.2bn R3.0bn 37.7% +0.8% +7.8% +56bps +8.7% +10.8% - 110bps • Impressive trading profit growth with and without bolt-on • Data, Print and Packaging cluster delivered a strong trad
Slide 23: Commercial Products
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Slide 24: Commercial Products CEO: Howard Greenstein
Commercial Products CEO: Howard Greenstein Revenue Trading profit Trading margin EBITDA Funds employed ROFE R17.0bn R0.9bn 5.5% R1.1bn R5.8bn 16.0% -5.3% -28.4% -176bps -24.8% -0.8% -610bps • Trading profit below expectation • Alternative energy order book remains very healthy despite • Weak manufac
Slide 25: Automotive
Automotive
Slide 26: Automotive CEO: Carla Seppings
Automotive CEO: Carla Seppings Revenue Trading profit Trading margin EBITDA Funds employed ROFE R27.2bn R0.9bn 3.3% R1.0bn R3.8bn 24.0% +6.0% +2.5% -11bps +7.3% +7.8% -130bps • Reasonable result • New and used vehicle sales slightly higher but at compressed • Diversification strategy taking shape GP
Slide 27: Adcock Ingram
Adcock Ingram
Slide 28: Adcock Ingram CEO: Andy Hall
Adcock Ingram CEO: Andy Hall Revenue Trading profit Trading margin EBITDA Funds employed ROFE R9.8bn R1.2bn 12.0% R1.3bn R5.8bn 23.2% +1.2% -5.2% -81ps -4.0% +10.9% -300bps • Bidvest shareholding 64.8% • Consumer → Personal care products showed good growth • Natco offer to minority shareholders in t
Slide 29: Strategy & outlook
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Slide 30: Global & local landscape
5-year reflection: FY2021 - FY2025 Bidvest’s response to complexity FY2021 FY2022 FY2023 FY2024 FY2025 Global & local landscape Inflation peaks Lowest GDP growth Covid pandemic Ukraine war Highest cost of debt levels UK 6.8% UK 0.7% SA 0.5% since 2008 (BVT fin exp +25%) RoI 5.8% RoI 3.2% Aus 0.6% SA
Slide 31: Acquisitions
5-year reflection: FY2021 – FY2025 5-year CAGR and net capital deployed to pursue growth strategy • 5-yr CAGR revenue +10.4%; trading profit +11.9% • Noticeable expansion capex in Freight (~R2bn), Aquazania, store roll-out (Plumblink, Voltex) strategic properties (~R1bn) • Six-monthly dividends (onl
Slide 32: Looking ahead
Looking ahead FY2026 - FY2030 Sustainability Framework 2035 People • Largest international hygiene services provider in the world Empowering our people through • S79 leases to secure Freights longevity >2050 inclusive development, lifelong learning, and future-focused leadership • Increase exposure
Slide 33: Looking ahead: hygiene services
Looking ahead: hygiene services • Bidvest caught up to largest competitor Revenue (GBPm) 800 £745m • Competitor - 70 countries; No1 in ⅓rd of these £576m • Other competitors mainly Europe or Americas focused 600 • Bidvest - 11 countries; No1 in 8 400 • Structural growth drivers for est 1.5-2x GDP •
Slide 34: Outlook
Outlook • Bullish about FY2026, notwithstanding global volatility and uncertainty and low growth domestically • Financially focused on • Delivering real organic growth from investment base • Improving cash generation further • Debt → reduce gross debt; optimise debt mix and related finance costs; ex
Slide 35: Annexure
Annexure
Slide 36: Services International
Services International • Ownership of the largest hygiene business in Canada (Citron) with a presence in four US states Looking ahead • Australia’s high inflation, interest rates and persistent labour pressures concerning, as is the UK macro environment • Innovation and scope of offering, major diff
Slide 37: Freight
Freight Bidvest Tank Terminals Looking ahead • Increased storage capacity 10% (butane spheres, fuel and multi-purpose tanks). • 6% volume growth → + fuels, oils, gasses; - veg oil • Added tank capacity still to reach full potential Bidvest International Logistics • Another strong performance from in
Slide 38: Services SA
Services SA Security and Aviation Looking ahead • Economic climate in SA contributing to tough trading conditions and pricing pressures • Pricing pressures to persist • Margin protection is paramount. Pleasing new business wins • Stellar performance from BidAir Cargo • Despite tough trading conditio
Slide 39: Branded Products
Branded Products Data, Print and Packaging Looking ahead • Tough trading environment earmarked by pricing pressure • Product realignment, innovation • Formation of Bidvest Labels aggregates product from the three facilities instead of silo specialisation and expansion remain strategic focus • Operat
Slide 40: Commercial Products
Commercial Products • Public infrastructure neglect and a contracting manufacturing base continue to have a major negative impact Looking ahead Trade • Restructuring initiatives within various • Bidvest Electrical, specifically Voltex Wholesale, Electech and Waco under tremendous profitability and m
Slide 41: Automotive
Automotive • Diversification and appropriate cost structures remain the key focus areas Looking ahead McCarthy • Restructured division poised for • Car market continues to shift from luxury brands to more affordable options, driven by rising financial pressure growth beyond motor franchising on hous