Bidvest Freight sees profitability improve following the sale of Manica

Bidvest Group has announced its financial results for the six months ended December 31, 2016. The Group reported results across its entire range of operations including its Freight division.

Bidvest Freight’s results were impacted by the sale one of the Group’s subsidiaries, Manica Africa. Subsequently, turnover was down 18.6% year-over-year to *R2,447m. More importantly however, profitability improved as EBITDA for the Freight division was R678m, up 4.8% year-over-year. Group turnover overall was R34,845m, up 3.6% on the same period the previous year. EBITDA was R3,566m, up 5.1%. Bidvest Freight contributed 7% of total revenues for the Group and 19% of trading profit.

The Freight division operates through a number of separate companies, which had mixed results overall. Bidvest Tank Terminals saw improved volumes in chemicals, edible oil, gas and petroleum in the six months. SA Bulk Terminals saw turnover supported by increased maize imports. Bidvest Panalpina Logistics saw reduced volumes, but the group said it saw improvements in road freight and reported that warehousing performed well. Trading profit increased at Bidvest Port Operations due to successful cost savings and good performance from warehousing operations. SA container Depots saw flat volumes, but revenue grew due to new container weighing services, whereas Naval’s volumes decreased.

Source: Bidvest

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