Best Food Logistics sale ‘nearing finalisation’
Bid Corporation says the sale of Best Food Logistics, its UK contract distribution business, is “hopefully nearing finalisation”.
The group, which is headquartered in South Africa, has been exiting low margin logistics activities globally where they do not fit into its model for its foodservice businesses.
However, in its results for the year to 30th June, Bidcorp said that the performance of the UK contract distribution business continued to improve in the second half of F2019.
“Service levels are significantly better and customer pricing has been substantially increased to better reflect the risk and reward of these activities. A much-improved financial result is expected in F2020.
“Bidcorp’s sale process for this business is hopefully nearing finalisation.”
Bidcorp’s UK business is now focused on the Bidfood and Bidfresh operations.
The group said that despite “Brexit’’ fatigue in the United Kingdom, revenue rose 10.1 per cent to R33.3 billion (£1.8bn) while trading profit increased by 20.3 per cent to R1.7 billion (£90m).
Bidfood UK performed strongly, with sales and trading profit well ahead of F2018, it said. “Top-line gains and intense margin management enabled a good performance in view of persistent cost pressures in wages, fuel and energy prices.”
However, Bidfresh’s performance was below the previous year, impacted by a “stressed casual dining” customer base.