Keen on going steady, rather than a fast fling? Buy Bidcorp
Because 92% of revenue comes from outside SA, the food services giant has attractive rand hedge qualities
Three decades ago, Bidcorp (https://www.sharenet.co.za/v3/quickshare.php?scode=BID) began life as Chipkins, a small food services company, under entrepreneur Brian Joffe. It has grown into one of SA’s largest food services companies, with a market capitalisation of R108bn, revenue of R129bn, employing over 26,000 people on four continents.
Because 92% of revenue comes from outside SA, it enjoys significant rand hedge qualities. Long-term growth has been largely organic, complemented by small, intelligent acquisitions which cumulatively added scale to the business.
Annual results to June 2019 highlight the resilient nature of the group. Stubbornly low food inflation makes trading in this industry very difficult, as does labour availability and volatile energy prices. But Bidcorp management has managed these issues with aplomb, churning out consistent earnings growth since separately listing from Bidvest (https://www.sharenet.co.za/v3/quickshare.php?scode=BVT)...