UPDATE 2-Bidvest FY profit rises, upbeat on outlook

* Headline EPS at 1,070 vs 930 cents

* Sees acquisition opportunities, stronger growth

* Shares up 1.2 pct vs 1.6 pct gain in index

(Adds CEO, analysts comments, shares)

By Tiisetso Motsoeneng

JOHANNESBURG, Aug 30 (Reuters) - South African industrial conglomerate Bidvest (BVTJ.J) posted higher full-year profit on Monday as solid demand from emerging markets offset a stronger rand, and said it was looking for potential acquisitions.

Bidvest, whose businesses include auto retailing, shipping and food distribution, has been helped by exposure to fast-growing markets such as Asia, which have largely escaped the worst of the global downturn.

It also expects a boost from decades-low interest rates at home, and as economies in Europe and South Africa make a gradual recovery.

Bidvest, which has a market value of around $6.2 billion, said in a statement it is budgeting for "real growth" in earnings in the coming year.

"Our capacity to do deals is quite significant," Chief Executive Officer Brian Joffe said in a telephone interview.

"We obviously have to put our balance sheet to work over the next short while."

He declined to say how much Bidvest would be looking to spend on a potential acquisition. The company has said it is looking to expand its food service business in Europe.

The company's current leverage ratio stands at around 30 percent, Joffe said, adding that could "easily" be boosted to 40 or 50 percent.

OVERSEAS PROFITS

Bidvest, which makes more of a quarter of its sales overseas, said full-year results were boosted largely by stronger auto sales in South Africa and rising demand for catering services in Asia.

"It's a good quality set of results and shows that something is happening in the economies it operates in," said Mark Hodgson, an analyst at Avior Research.

But the company was also hit by the strengthening rand, which eats into the value of overseas earnings.

Earlier this month the rand hit a 2-1/2 year high against the dollar, prompting South Africa's finance minister to say he was concerned about the rise of the currency. [ID:nLDE67I0I4]

Bidvest's Joffe said the soccer World Cup, which was expected to lift earnings at home, failed to deliver due to fewer than expected foreign visitors.

Headline earnings per share rose 15 percent to 1,070 cents in the year to end-June.

Headline EPS, the main gauge of profit in South Africa, strips out certain one-time items.

Revenue fell 2.3 percent to 109.8 billion rand ($14.91 billion), hit in part by the stronger rand.

Bidvest's cash generation increased 18.3 percent to 8 billion rand, debt fell 7.3 percent to 3.8 billion rand, while finance charges dropped by around a quarter.

Shares of the Johannesburg-based company, which are little changed so far this year, gained 1.2 percent to 130.50 rand as of 1110 GMT, slightly underperforming a 1.6 percent rise in the blue-chip Top-40 index .JTOPI. (Editing by David Dolan)