Bidcorp profit soars on resurgent hospitality industry

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Food services group says revenue in the six months to end-December exceeded the pre-Covid levels in all divisions and announces a hefty increase in its interim dividend

International food services group Bidcorp on Wednesday reported stellar interim earnings on the back of a resurgent hospitality sector after the easing of Covid-related travel restrictions.

The company, valued at about R125bn on the JSE, caters to the hospitality, tourism and leisure industries, which were hit especially hard pandemic-induced lockdowns and curbs over the past two years. “Revenue across all divisions was significantly higher than the first half of the 2022 financial year, reflecting the benefits of high inflation but also representing real double-digit growth in activity,” Berson said. Each division exceeded the pre-Covid levels achieved in the same period in 2020, he added.

The group “is on a path to refine its exposure across all segments”, he said, adding that reducing office catering in major cities has helped it shield many of its businesses from the slow recovery in this segment.

 

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