Bidvest: revenue grows slowly, but profit and cash flow accelerate

Bidvest reported results for the fiscal year ended June 30, 2026. Revenue grew 2.8%, EBITDA rose 4.3%, and net profit increased 9.5%, to 8,948.6 million over the trailing twelve months. At the current price, the shares look rather attractive: moderate growth, low debt, and a dividend yield of 2.7%.

Key takeaways

— Net profit for the year rose 9.5% – faster than revenue and EBITDA

— EBITDA margin edged up to 7.1% from 7.0% a year earlier

— Operating cash flow over the trailing twelve months – 14,500 million, almost twice net profit

— Net debt on the balance sheet – 3,821 million, just 0.22 of EBITDA over the trailing twelve months

— Dividend yield of 2.7% – modest but backed by low debt and stable cash flow

— On the portal's model, the share's upside is minus 9% from the current price

— Return on equity – 19.2%, indicating efficient use of shareholders' funds

Attractiveness

Key figures, ZAR bn

Net profit for the year rose 9.5% – faster than revenue and EBITDA

In the reporting period ended June 30, 2026, net profit rose 9.5% year on year. That is noticeably faster than revenue (+2.8%) and EBITDA (+4.3%).

Profit growth outpacing operating metrics suggests cost control and possibly one-off gains. The report does not disclose reasons, but the trend is stable.

EBITDA margin edged up to 7.1% from 7.0% a year earlier

EBITDA margin for the reporting period was 7.1%, up 0.1 percentage point from a year earlier. This is a modest improvement, but it aligns with moderate profit growth.

The low margin is typical of Bidvest's distribution business. Even a small increase noticeably affects net profit.

Operating cash flow over the trailing twelve months – 14,500 million, almost twice net profit

Operating cash flow over the trailing twelve months was 14,500 million, well above net profit of 8,948.6 million for the same period. This indicates high earnings quality and efficient working capital management.

Such cash flow funds investments and dividends without increasing debt.

Net debt on the balance sheet – 3,821 million, just 0.22 of EBITDA over the trailing twelve months

Net debt at the latest balance sheet date – 3,821 million. The ratio of net debt to EBITDA over the trailing twelve months is 0.22, a low level.

Over the year, net debt declined by 2.4 billion, confirming financial discipline. Low leverage leaves room for higher dividends or acquisitions.

Dividend yield of 2.7% – modest but backed by low debt and stable cash flow

Over the trailing twelve months, the dividend yield was 2.7% at the current price. This is a moderate level, but it is backed by low debt and stable operating cash flow.

We expect the company to maintain or slightly increase dividends this year, given high cash flow and low leverage. However, the final decision rests with the board.

On the portal's model, the share's upside is minus 9% from the current price

Our value-creation model, based on EBITDA growth and target multiple, shows the share trades 9% above its fair value. This means the market has already priced in growth expectations.

At the same time, multiples do not look stretched: P/E over the trailing twelve months – 16.6, EV/EBITDA – 8.9. These levels are close to the three-year averages, though exact figures are not disclosed.

Return on equity – 19.2%, indicating efficient use of shareholders' funds

Return on equity over the trailing twelve months was 19.2%. This is a high figure, indicating that the company generates substantial profit on invested capital.

High ROE supports investment appeal, even if revenue growth remains moderate.

Valuation on the latest reported figures

Bottom line

Bidvest showed steady but moderate growth: net profit rose 9.5%, and operating cash flow is almost twice net profit. Debt is low, and dividend flow is secure. However, the portal's model suggests a slight downside, and revenue growth is not high. For shareholders, the key question is whether the company can accelerate growth or increase dividends to justify the current price.