Bidcorp interim results
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Bidcorp, the global food services company spun off from Bidvest in 2016, said the post-Covid-19 recovery had been faster than expected, and it was somewhat more optimistic about the next 12-18 months.The group, which delivers to the food services industry, reported FY HEPS decreased by 48,6% to 741,3 cents per share. While its gross profit percentage increased to 24,1%.Bidcorp continues to perform in line with the broader peer group of leading foodservice and catering companies. The stock is down 33% YTD in USD terms, which is exactly in line with Sysco and a bit ahead of Compass Group and Sodexo.
What is striking is that Total Return CAGR over 4 years is -2.4%pa. It’s been four years since the company spun off from Bidvest (at an overvalued price of R305/share) and averaging a ROIC of +-10%pa. That equates to 46% growth in inherent value over four years. If one applies that growth to today's share price to solve for what price the company should have listed at one arrives at R182. Interestingly the share price hit a low of R184 on 19 March 2020. In this interview Michael Avery speaks to CFO David Cleasby about when the company expects restaurants to return to pre Covid levels.
What is striking is that Total Return CAGR over 4 years is -2.4%pa. It’s been four years since the company spun off from Bidvest (at an overvalued price of R305/share) and averaging a ROIC of +-10%pa. That equates to 46% growth in inherent value over four years. If one applies that growth to today's share price to solve for what price the company should have listed at one arrives at R182. Interestingly the share price hit a low of R184 on 19 March 2020. In this interview Michael Avery speaks to CFO David Cleasby about when the company expects restaurants to return to pre Covid levels.
