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Industrial giant Bidvest has seen its business profits decline by nearly 20% after incurring Covid-19 related charges of R1.6 billion.
On Monday, in its annual results for the year ending June 30, 2020, Bidvest announced that its business profits had decreased from R6.6 billion in 2019 to R5.34 billion due to the pandemic.
The group decided not to declare a final dividend, citing high levels of uncertainty and its ongoing restructuring, meaning its total dividend for the year remains at 282 cents per share, just over 50% less than in 2019.
Normalized overall earnings fell 22.5% to R3.4 billion from R4.5 billion in 2019, while group revenue from continuing operations increased to R76.5 billion from R76.1 billion in 2019.
Bidvest’s debt also increased from R7.8 billion in 2019 to R19.2 billion, following its acquisition of the UK hygiene services company PHS for £ 495 million (R10.5 billion at rate current exchange rate) in May.
The group also announced that its CEO, Lindsay Ralphs, will step down on October 1, to be replaced by CEO-designate Mpumi Madisa. Ralphs was appointed CEO of Bidvest South Africa in 2011 and continued as the group’s CEO in 2016 after the company spun off its foodservice division.
“The Bidvest family and board of directors thank Lindsay for 28 years of invaluable commitment and contribution. He will leave a deep legacy and his distinctive mark on Bidvest that will continue to guide the group in its future endeavors,” the group said in a statement.
