Full Year 2024 Bidvest Group Ltd Earnings Call Transcript
Key Points
- Bidvest Group Ltd (BDVSY) reported a solid financial performance with a 6.7% increase in group revenue to ZAR122.6 billion.
- The company executed 11 acquisitions, expanding its footprint in Australia, Asia Pacific, Northern Ireland, Dublin, the UK, and South Africa.
- Cash generated by operations was strong at ZAR14 billion, up 15% year-on-year, with an excellent cash conversion rate of 83.4%.
- Five of the seven divisions reported profit growth, with offshore operations now accounting for 22% of profit compared to 20% in the prior year.
- The company created 5,841 new jobs, invested ZAR740 million in staff training and development, and reduced group water intensity by 43% and emission intensity by 59%.
- Gross margin declined to 28.4% from 29% due to higher distribution costs, wage inflation, and rand weakness.
- The automotive division faced significant challenges with a 24.8% decrease in trading profit and a decline in new vehicle volumes by 7.8%.
- The commercial products division saw a 10% decrease in revenue due to a significant decline in renewable sales.
- The financial services division experienced a 7.8% decrease in revenue, mainly due to declines in the short-term insurance business and challenges in Bidvest Life.
- The company decided to exit the banking industry, commencing the sale of Bidvest Bank and FinGlobal, which could create uncertainty and transition challenges.
Good day, ladies and gentlemen, and welcome to the Bidvest annual results. (Operator Instructions) Please note that this call is being recorded.
I would now like to turn the conference over to Ilze Roux. Please go ahead, ma'am.
Thank you very much. Good morning, good afternoon, everyone. My name is Ilze Roux, I'm the Corporate Affairs Executive, and I have the pleasure of welcoming you on to the call today. In the room with me, I've got Mpumi Madisa, Group CEO; Mark Steyn, Group CFO; and Gillian McMahon, one of our Executive Directors.
Thank you for your interest in Bidvest. We are proud of these results that we are reporting today. They reflect the attributes that the group is best known and recognized for: consistent growth; high cash quality; and value-creating returns.
It is also equally pleasing that we are able to continue creating social value and mutual benefit for all our societies and for those that rely on us and who supports us. As is customary, Mpumi will make
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