Bidvest says executive director Mpumi Madisa will be the next CEO of the trading, distribution and services group, which has a market capitalisation of R72bn.

The group said on Monday that Madisa had been appointed as CEO-designate as part of its succession planning process.

Lindsay Ralphs will remain CEO until the 2021 financial year, which begins in July 2020. Until then, Madisa “will work closely with Lindsay to ensure a smooth transition”.

Madisa joined Bidvest in 2003. She is currently an executive director on the Bidvest board and she holds other external nonexecutive director roles, including at Adcock Ingram and Business Leadership SA.

“One of our key priorities is developing the next generation of leaders and Mpumi is the perfect example of this,” Ralphs said.

“Her exceptional leadership skills and depth of experience will ensure continuity for all Bidvest stakeholders and the Bidvest family”.

Bidvest said earlier on Monday it had increased its interim dividend 10.6% to R2.82, as higher margins made up for marginal revenue growth in the six months to end-December.

Group headline earnings increased 10% to R2.1bn, even as group revenue inched up 0.2% to R40bn.

This was partly thanks to a 120 basis-points increase in the group’s gross profit margin, to 29.3%.

hedleyn@businesslive.co.za