Bidvest posts disappointing results

Bidvest Namibia this week presented its results to a packed audience at the Nampower Convention Centre which it described as disappointing according to its Chief Executive Officer, Sebby Kankondi.

Remarkably, trading profit for the just concluded year fell 17% to N$415.6 million, revenue decreased 5% to N$3.5 billion while its headline earnings per share declined by 103.2 cents. Fishing continued to be the mainstay according to Kankondi as he spoke of the cuff while briefly going through his presentation. According to Bidvest, fishing contributed 83% towards trading profit despite a smaller allocation in its horse mackerel quotas. Added Bidvest, “Freight and Logistics performed poorer than expected showing a 18,5% decrease in trading profit, largely due to a lack of any major oil and gas projects. Monjasa, the new fuel bunkering business of Manica, performed ahead of expectations. Food and Distribution had disappointing results with trading profit declining by 61,1% to N$9,6 million. Said Bidvest, “Caterplus recorded a significant turnaround but the Taeuber & Corssen business declined, mainly as a result of Namib Poultry Industries terminating its distribution agreement with T&C. This action is currently being challenged legally. In addition, certain principals were unable to supply goods on demand, resulting in supply chain shortages.” Encouragingly, its Commercial and Industrial Services performed, reflecting a 21% increase in profit. “Steiner more than doubled its revenue and had a positive influence on the divisional result. Cash generated by operations increased by 28,2% creating further capacity for expansion,” Bidvest said. When question time arouse Bidvest Namibia Chief Executive Officer, Sebby Kankondi and Bidvest Namibia Financial Director, Theresa Weits chose to respond as cricket batsmen would, deflect the ball close, in response to numerous questions from irate analysts, which involved the purchase of the Novel Motor Company, what Bidvest Namibia would deem an optimum fishing quota and its planned processing plant. The pair instead, answered to a limited extent the questions asked and used what they said, Namibia Stock Exchange disclousure rules.