Bidvest, led by South Africa’s Mpumi Madisa, announces $86.9 million dividend payout

Key Points

• Bidvest reported a 5.7% revenue increase to $3.51 billion and a 4.69% rise in net profit to $196.7 million for H1 2024.
• The group declared an $86.9 million interim dividend, marking a 0.6% year-on-year increase, payable on March 31, 2025.
• Strong cash generation, acquisitions, and balance sheet optimization drive Bidvest’s resilience amid economic headwinds.

Bidvest Group Limited (Bidvest), the Johannesburg-based industrial and services company led by South African executive Mpumi Madisa, is set to pay an interim dividend of $86.92 million to shareholders for the first half of its 2025 fiscal year. The payout reflects the company’s focus on rewarding investors despite ongoing economic challenges.

The interim dividend payout of R4.7($0.255) per share, amounting to R1.6 billion ($86.92 million) represents a marginal 0.6 percent increase from the previous year, will be distributed to shareholders on Mar. 31, 2025.

Strong financial performance despite challenges

Despite global economic uncertainties, the company remains confident in its ability to deliver sustainable growth. For the six months ending Dec. 31, 2024, Bidvest recorded a 5.7 percent rise in revenue, reaching R64.5 billion ($3.51 billion), driven by steady demand for essential goods and services.

Net profit increased by 4.69 percent to R3.62 billion ($196.7 million), even as the company faced hurdles in bulk commodity logistics and a weaker-than-expected performance from its pharmaceutical subsidiary, Adcock Ingram.

The company’s cash generation remained strong, rising 18 percent to R4.5 billion ($244.74 million), while its cash conversion ratio improved from 33.4 percent to 44.8 percent. Headline earnings per share (HEPS) edged up 2.8 percent to R10.16 ($0.552), and net asset value per share climbed to R108.61 ($5.90), up from R100.08 ($5.43) a year earlier.

“Operational excellence and strategic acquisitions remain central to our expansion,” said CEO Mpumi Madisa. “We are optimizing our balance sheet, exploring bolt-on acquisitions, and actively managing debt to strengthen financial flexibility.”

Bidvest’s market position and growth strategy

Founded in 1988, Bidvest operates across South Africa, the UK, Ireland, Spain, and Australia, managing over 250 businesses with a workforce of 125,000 employees. With a market capitalization of R80.8 billion ($4.4 billion), it remains one of South Africa’s most influential corporations.

Under Madisa, Bidvest has upheld its reputation as a resilient, high-growth enterprise, navigating inflationary pressures and supply chain disruptions through diversification and cost management. With strong cash flows, an expanding global footprint, and an adaptable operating model, the company is well-positioned to create long-term value for shareholders.