By Hilary Mare in Ongwediva
BIDVEST Namibia employment numbers decreased from 3 319 to 2 732 for the year ended June 30 2016, the company has said.
This is subsequently a close to 600 employee decline over the reporting period.
“Two vessels were sold and the group engaged less seasonal workers at UFE. Bidfish does not have enough own quota and additional quota is bought at a high cost. Horse mackerel sales prices fell significantly due to oversupply to traditional markets and freight and logistics lacked project activity during the year,” the company said in a recent presentation to investors and analysts.
In the group’s financial results profit for the year decreased to N$235 million from N$412 million, a decrease of 43 percent. The results showed that although revenue increased by 9,2 percent to N$3,9 billion, trading profit decreased by 28 percent to N$294,9 million with the increase in revenue is mainly attributable to the acquisition of Novel Motor Company, which made a N$755,2 million contribution to revenue.
“Food and distribution reflected a turnaround towards the latter half of the year which is not enough to overcome the obstacles in the first half year,” extended the company.
In other key highlights Bidvest acquired Novel Motor Company for N$ 238,8 million effective July 31 2015 and acquired 49 percent shareholding in Namibia Bureau de Change effective July 16 2015 for N$ 8,5 million Furthermore Bidvest acquired 40 percent shareholding in Industria Alimentar Carnes de Mozambique, a distribution company in Mozambique for N$61,9 million
In light of the fishing’s trading profit decreasing by 41,8 percent, the company said that its Angolan business struggled with vessel breakdowns, UFE made losses due to pressure on pilchard resource (canning factory not opened in 2016) and the horse mackerel business decreased in size (36,2 percent drop in volumes: Trachurus partners exited, Carapau JV), as well as a 21 percent drop in hard currency prices. The average exchange rate had a 26,1 percent positive impact on revenue, but had same impact in some USD denominated costs. “Freight and logistics trading profit decreased by 66,9 percent due to low project activity during the year.
Trading profits in food and distribution increased by 104,6 percent, N$7 million of which was attributable to the cancelled NPI contract; if excluded the trading profit increased by 31,3 percent. The Commercial and Industrial Services and Products division declined by 19,3 percent, mainly due to Voltex which needs significant focus . Three acquisitions were made during the current financial year, using cash resources which have added diversity and greater opportunities for the market,” the company extended.
Bidvest Namibia is a diversified group with a diverse portfolio of businesses ranging from fishing, freight and logistics, services, products, vehicles, trading, food and distribution, and commercial interests.
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