Sign up for our free daily newsletter
Get the latest news and some fun stuff
in your inbox every day
On Monday Bidcorp came out with a positive trading update. Gross margins have increased and operating costs have been maintained for the four month period up to October 2019. Political unrest in Hong Kong, Chile, Barcelona and the UK have impacted tourism and eating patterns in those areas. That is an interesting list of relatively stable countries and cities. It is not just SA that has problems.
Although SA is now a small part of their overall sales, they mentioned that the country showed solid results and has recovered from the Listeriosis crisis.
The company is still on the lookout for bolt on acquisitions and purchased a niche food wholesaler in the UK called Elite Fine Foods during the period.
Since splitting from Bidvest in 2016 the share price is up 13%. That is not great but it has strongly outperformed many others stocks on the JSE. Over the last year the share price is up 26%. We see this as a solid hold in all SA portfolios.
