Our opinion on the current state of BID.

Bidcorp (BID) is a diversified international food company which operates in 34 countries around the world. It was spun out of Bidvest in June 2017 to release shareholder value. We see this as a solid blue chip, rand hedge share which should perform well. About 95% of its income is generated outside South Africa. Bidcorp focuses on the wholesaling and delivery of what it describes as "fit-for-purpose" product ranges which it says will continue to grow strongly. In its results for the six months to 31st December 2022 the company reported revenue up 28,1% and headline earnings per share (HEPS) up 45,5%. The company said, "Currency volatility positively impacted the rand-translated results by 3,9%, with constant currency HEPS of 945,9 cents per share being recorded. Overall demand in the hospitality markets maintained the buoyancy seen in the latter part of F2022, assisted by inflationary impacts, but well surpassing pre-COVID-19 (COVID) levels". In an update on the 10 months to end-April 2023 the company said, "Our group trading results have pleasingly continued to achieve record levels in the four months period to April 2023, against the backdrop of the Northern Hemisphere winter across the UK and Europe and a few natural disasters which temporarily impacted some operations in various parts of the world". In a trading statement for the year to 30th June 2023 the company estimated that HEPS would rise by between 32% and 36%. Technically, the share remains volatile, and was in a steady upward trend before the COVID19 pandemic which is now resuming. It is on a P:E of 22,22 - which is an indication of its blue chip, rand-hedge status. We expect it to continue to perform well, benefiting directly from the general recovery of the world economy.