Bidvest has approved R2.5 billion in growth capital expenditure for a second LPG terminal at the Port of Richards Bay and expanded bulk grain and liquid capacity at the Port of Durban.
The approval comes as the group reported an 8% increase in full-year trading profit to R13.1bn and relaunched the disposal process for Bidvest Bank after Access Bank failed to secure the required regulatory approvals in time.
Bidvest said on Monday that the R2.5bn investment would fund the second LPG terminal and additional capacity at the two ports.
The group said negotiations for the sale of Bidvest Bank were active and that it remained confident the disposal could be completed. The previous transaction with Access Bank was terminated after the bank failed to secure the required approvals before the long-stop date.
Bidvest completed three acquisitions totalling R1.67bn during the year ended 30 June 2026.
Chief executive Mpumi Madisa said the group had, after year-end, monetised part of its majority stake in Adcock Ingram and used the proceeds to repay debt.
“Bidvest remains a majority shareholder of Adcock. Capitalising on opportunities such as this forms part of our capital recycling,” she said.
Group revenue rose 3% to R130bn, while cash generated from operations increased 17% to R17.2bn. Free cash flow rose 27% to R12.5bn.
Headline earnings per share increased 4% to R19.52. Bidvest declared a final dividend of R[confirm amount], up 7% on the previous year.
“This year’s performance reflects the clear delivery against our FY2026 commitments. We improved organic growth momentum, materially increased cash generation, maintained capital discipline and deleveraged, while the programme to rebuild returns remains a priority,” Madisa said.
Bidvest said it had made progress with its strategic initiatives after signing a terminal operator licence for the renewed 25-year Island View port lease. Two further licences are under negotiation.
The group said it had realised additional value from the integration of Citron UK into PHS in its hygiene and testing, inspection and compliance businesses.
Bidvest’s South African services division performed more strongly in hospitality and testing, inspection and compliance services. Continued pressure on vehicle gross margins was offset by solid performance elsewhere in the automotive portfolio, particularly insurance, as well as the receipt of an old insurance claim. This contributed to a 7.1% increase in trading profit.
The R1.6bn acquisition of Aquatico, completed in October last year, expanded Bidvest’s testing, inspection and compliance platform into environmental monitoring and water testing.
In its outlook, Bidvest said its near-term priorities remained accelerating organic growth, improving cash generation, reducing leverage and rebuilding returns.
“Bidvest acknowledges the impact of competitive pricing and related margin pressure, energy price instability and muted industrial demand in South Africa. The growth outlook will, however, be supported by structural demand in hygiene, TIC services, hospitality and inbound tourism,” the company said.
Further support is expected from the annualisation of Aquatico, broader automotive brand representation, increased used-vehicle reach and a recent product-specific improvement in industrial activity.
Bidvest said it was also seeing opportunities from progress in infrastructure, logistics and port reform in South Africa, as well as the deployment of artificial intelligence.
However, it expects currency volatility and sluggish economic activity in the UK, Ireland and Australia to persist.
Bidvest shares were 1.30% lower at about R233.85 in early trade on the JSE on Monday.
THE NATIONAL