BID CORPORATION LIMITED - Capital Markets Update

Evidence from the filing

• Group revenue increased by 2,4% in constant currency, driven predominantly by real volume growth despite negligible food inflation.

  “Group revenue increased by 2,4% in constant currency reflecting predominantly real volume growth, limited contributions from recent bolt-on acquisitions, and negligible food inflation across the basket. Revenue fell by 4,3% in rand terms reflecting negative average currency translation movements which have had an impact of 7,7% on the group’s revenue.”

• Trading profit increased by 8,2% in constant currency and 1,6% in rand terms as pricing, mix, procurement and cost control delivered stronger margins.

  “Trading profit increased by 8,2% in constant currency and 1,6% in rand terms, supported by pleasing performances in Europe and the United Kingdom, and improvements in Australasia and selected Emerging Markets businesses. Disciplined pricing, customer and product mix management, procurement initiatives, and continued cost control have delivered stronger margins.”

• Headline earnings per share increased by around 10,0% in constant currency and 3,2% in rand terms for the four months ended October 2026.

  “Headline earnings per share (HEPS) has increased pleasingly by around 10,0% in constant currency and 3,2% in rand terms.”

• Gross profit percentage improved to approximately 25,0% from 24,0%, although CODB increased to 19,1% of net revenue from 18,5%.

  “The group’s gross profit percentage increased to approximately 25,0%, compared with 24,0% in the corresponding period, reflecting the benefits of constant strategic focus on procurement benefits, product and customer mix, and Own Brand development through value-add activities. The CODB was higher at 19,1% of net revenue compared with 18,5% in the corresponding period. Operating costs remain well managed but are subject to pressure from labour, fuel, energy, and other service-related inflation.”

• Trading into early November was in line with expectations, with early optimism ahead of the festive trading period and the rand's negative impact projected to dilute.

  “Trading into early November has been in line with expectations, and the group is entering the important festive trading period in many markets with early optimism. Indicators are that food inflation, which has been largely absent from the trading environment to date, will start to reflect in food prices within the next few months. The negative impact of the rand on the results is projected to dilute over the rest of the financial year, assuming current currency levels prevail.”

• Greater China sales remained under pressure, while trading profits improved only marginally.

  “Greater China remained challenging, with sales under pressure although trading profits have marginally improved.”

• UK CFBG operations remained affected by weak hospitality, declining consumer and business confidence, and higher labour, energy and fuel costs.

  “CFBG, the independent focused operations, continued to be impacted by the weak hospitality environment in the UK. Against declining consumer and business confidence and heightened operating cost pressures, the business managed to improve gross margins despite the higher cost-of-doing- business (CODB) from labour, energy, and fuel costs.”

• Geopolitical disruption continues to threaten consumer confidence, energy and fuel costs, and supply-chain efficacy.

  “Geopolitical disruption and the consequential economic impacts continue to present risks to consumer confidence, energy and fuel costs, and supply chain efficacy.”

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