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 The Sharenet Daily 
Tuesday, 17 March 2015 - 20:00
Top News
SA Business
Company News
Company Results
World Markets (Spot Prices)
JSE Today
JSE Trading Statistics
Major Moves
Index Summary
Latest Consensus Changes / Results Expected
Recent Dividends / Ex Div
Upcoming AGMs
Stock Exchange News Service (SENS)

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Seed Weekly - AVI ? Growing Great Brands

AVI Ltd is listed on the JSE under the Food Producers sector, and the company is involved in the manufacturing, processing, marketing and distribution of branded consumer products.

AVI houses many of South Africa’s favourite brands across several market sectors, including beverages (Five Roses, Koffiehuis), biscuits & snacks (Bakers, Willards, Provita), fashion & beauty (Yardley, Lenthéric, Coty) and frozen foods (I&J). The brand portfolio includes 33 owned brands and 20 international brands under license, with brands targeting consumers across all income groups. AVI’s competitors include Tiger Brands, which is double the size by market capitalisation, and Pioneer Foods, which is roughly the same size.


AVI was formed in 1944 when the Anglovaal group split its interests into three segments - engineering services (Aveng), Mining (Avmin) and consumer products (AVI). The industrial assets were unbundled into two new listings, Aveng and AVI, in 1999.

Latest Results

AVI recently released its interim results for the six months ended 31 December 2014, and management believes decent results were achieved given a challenging trading environment.

Revenue increased by 11.1% to R6bn on the back of higher selling prices, while cash from operations was up 16% to R1.31bn. Headline EPS increased by 10%, as did the interim dividend. A special dividend of R2 per share was declared, “in line with AVI’s ongoing commitment to return excess cash to shareholders.”

Operating profit was up 13% to R1.15bn from the previous reporting period. Operating profit has grown at 17% per year over the last 10 years, while the operating profit margin increased from 10% in 2005 to 19.2% currently.

The biggest contributors to operating profit were Entyce (beverages) and Snackworks (biscuits & snacks), which benefitted from both higher selling prices and volume growth.
I&J reported higher catch rates and sales volumes, while the weaker rand materially increased income from exports. A fuel price hedge that was marked-to-market partially offset some of I&J’s contribution to operating profit.

Spitz – a quality footwear retailer – reported record sales in December and only had limited impact on sales from load shedding.

Green Cross was a significant detractor, with volumes declining and shelf space lost to competitors. In addition, six retail stores had to be refurbished.

AVI’s gross profit margin improved slightly from 44.3% to 44.5%, with international fashion brands negatively impacted by a weaker rand, but food and beverage brands benefitting from price increases.

Outlook and Fundamentals

Overall, management expects the current constrained consumer demand environment to persist. The I&J business segment provides a nice hedge against rand weakness, as higher import costs for the international fashion brands will be partially offset by higher I&J exports.

The beverage and snack segments are well established, and should be able to defend their market share and profit margins. Green Cross should hopefully benefit from the store refurbishments and raise volumes accordingly, given that retail space has also grown.
I&J has locked in most of its exchange rates for the second half of the year, and should benefit from lower fuel prices. Maintaining high catch rates is crucial to this segment having a strong second half.

AVI’s dividend yield of 3.2% compares well with its peers Tiger Brands (2.4%) and Pioneer Foods (1.1%). Currently trading at a PE of 21, AVI is more expensive than Tiger Brands (19) but significantly cheaper than Pioneer Foods (30) on this basis.

AVI is included in the Seed Equity Fund at a 1% weight, with strong recent price and earnings momentum securing it a place in the Momentum portfolio.

Kind regards,

Cor van Deventer

021 914 4966

Tue, 17 Mar 2015
Top News
South African stocks edged higher on Tuesday after a banking recommendation upgrade on Lonmin restored some confidence in the recently battered mining sector.  Full story

South Africa's current account deficit narrowed in the final quarter of 2014, although the economy and the rand remain vulnerable to shocks caused by capital outflows, the central bank said.  Full story
Residents of the southern Vanuatu island of Tanna said they were running out of food and basic supplies on Tuesday, after a huge cyclone tore across the South Pacific nation wreaking widespread devastation but not the heavy death toll initially feared.  Full story
Prime Minister Benjamin Netanyahu faced a fight for his political survival on Tuesday as Israelis voted in an election that opinion polls predict the centre-left opposition could win.  Full story
Iran and major world powers have been making headway in identifying technical options for a historic nuclear deal as an end-March deadline nears but difficult issues must still be addressed, U.S. and Iranian officials said on Tuesday.  Full story
Stocks mostly fell on Tuesday as the Federal Reserve opened a two-day policy meeting, which is being closely watched for signs of when. . .  Full story
Gold fell to a four-month low on Tuesday on investor jitters ahead of a Federal Reserve policy meeting that may offer further clues. . .  Full story
Hong Kong shares slipped on Tuesday, as lingering worries over anticipated monetary tightening in the United States offset bullish sentiment about China on. . .  Full story
A key China stock index rose closed at its highest in almost seven years, with investors pushing it through a psychological resistance level. . .  Full story

Japan's Nikkei share average ended at a fresh 15-year closing high on Tuesday, with sentiment lifted by gains in U.S. and European shares. . .  Full story
Australian shares rallied 0.8 percent on Tuesday, as buyers were encouraged after the Reserve Bank of Australia (RBA) left the door wide open. . .  Full story
The U.S. dollar weakened broadly on Monday ahead of the Federal Reserve's policy meeting on worries that the central bank could become more. . .  Full story
Gold fell on Monday, trading just above its lowest level in more than three months, due to stronger European shares and expectations that. . .  Full story
SA Business
Ethiopia's leading private oil marketer plans to build a $5 billion refinery within ten years to meet the growing demand for. . .  Full story
Spending in South Africa grew at an annualised 0.3 percent in the fourth quarter of 2014 after rising 3.2 percent in. . .  Full story
South Africa's rand was slightly softer against the dollar early on Tuesday with scope to weaken further should a central bank. . .  Full story
Anglo American and other companies looking to sell some of their mining assets in South Africa should sell to national champions,. . .  Full story

BHP Billiton said a proposed $13 billion spinoff of South32 would give the world's biggest miner a strong chance to ride. . .  Full story
South Africa's current account deficit narrowed in the final quarter of 2014, although the economy and the rand remain vulnerable to shocks caused. . .  Full story
Nigeria and Ivory Coast are looking to emulate Senegal's successful move into the market for Islamic bonds, the head of the. . .  Full story
South Africa's mining minister said on Monday he expected to start issuing shale exploration licences later this year.. . .  Full story

South African food and beverage company Clover Industries reported on Tuesday a 41 percent jump in first-half earnings on higher product prices despite falling sales and market share.. . .  Full story
BHP Billiton has done a great job in making its spin-off South32 look attractive, perhaps to the point where it may be a better bet than its parent.. . .  Full story
BHP Billiton has put a $12.95 billion valuation on the assets it is set to spin off in June and loaded it with much less debt than analysts had forecast, positioning the. . .  Full story
Company News
Shareholders are referred to the announcement released on SENS on 11 March 2015 and are further advised that the Company has. . .  Full story
Shareholders are referred to the GroupĂs audited consolidated financial results for the year ended 27 December 2014, released on the Stock. . .  Full story
Further to the SENS announcement dated 20th December 2013, the Gauteng Local Division of the High Court has given judgement that. . .  Full story
The following Offering Circular has been approved by the UK Listing Authority and is available for viewing: * Offering Circular dated 16. . .  Full story

The following Offering Circular has been approved by the UK Listing Authority and is available for viewing: * Offering Circular dated 16 March 2015 (the ˘Offering Circular÷) relating to the USD15 000 000 000 Euro Medium Term Note Programme by Anglo American plc and Anglo American Capital plc. To view the Offering Circular, please paste the following URL into the address bar of your browser. http://www.rns-pdf.londonstockexchange.com/rns/5887H_-2015-3-16.pdf. A copy of the Offering. . .  Full story
Company Results
Revenue for the interim period rose to R5.210 billion (2013: R4.983 billion). Gross profit lowered to R818 million (2013: R1.024 billion),. . .  Full story
Revenue from continuing operations increased to AUD19 769 (AUD19 669). Net loss for the period attributable to owners narrowed to AUD463. . .  Full story
Gross rental income jumped to R609.2 million (R368.7 million). Net rental income also shot up to R423.2 million (R237.7 million). Operating. . .  Full story
Revenue for the year grew to R6.6 billion (R6.3 million). Gross profit increased to R1.5 billion (R1.4 billion). Profit from operating. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0252300.24161.090.31%
JSE Top 4017:0046269.2766.700.14%
JSE Gold17:001172.3944.913.98%
JSE Financial17:0244799.4059.260.13%
JSE Industrial17:0074684.58-184.39-0.25%
JSE Indust 2517:0066416.32-260.00-0.39%
JSE Resource17:0040810.23946.312.37%
DJ Futures19:5817765.00-125.59-0.70%
DJ Ind19:5817850.78-126.64-0.70%
SP 50019:582073.46-7.73-0.37%
FTSE 10017:596832.9528.870.42%
All Ords07:385811.0041.300.72%
NZSE 5006:485905.41-5.99-0.10%
NameTimeRPMove% Move
Gold $19:591148.46-5.77-0.50%
Gold R19:5814211.72-88.88-0.62%
Gold R/kg19:58456856-1651-0.36%
Silver $19:5915.5700-.0690-0.44%
Platinum $19:591095.40-10.10-0.91%
Palladium $19:59762.69-15.80-2.03%
Brent Crude16/0353.44-1.23-2.25%
Rand / Dollar19:5912.3710-0.0180-0.15%
Rand / Pound19:5518.2068-0.1360-0.74%
Rand / Euro19:5513.0960-0.0013-0.01%
Rand / NZD19:589.0502-0.0844-0.92%
Rand / AUD19:559.4189-0.0577-0.61%
Yen / Dollar19:59121.39900.02100.02%
Euro / Dollar19:550.9436-0.0025-0.26%
Dollar / Euro19:591.05950.00290.27%
Pound / Dollar19:550.67750.00330.49%

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The JSE Today

Trading Statistics
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 SEKUNJALO  1991910.56.%164546
2 POYNTING  219199.50.%15400
3 LONMIN  22101909.41.%6692293
4 ANCHOR  1100807.84.%55659
5 GFIELDS  48402816.16.%2416545
6 FPT  976485.17.%707815
7 SHOPRIT  162177865.09.%1982592
8 BARWORLD  88684174.93.%1079038
9 TASTE  320154.92.%85573
10 PNR-FOODS  173268054.87.%285587
11 EQSTRA  410194.86.%1883860
12 ZEDER  765344.65.%2284806
13 ROLFES  345154.55.%55110
14 TELKOM  78963424.53.%1372994
15 ASTRAL  182007504.30.%263437
16 TORRE  474183.95.%227000
17 MIXTEL  344133.93.%78660
18 ANGLOPLAT  3312812423.90.%251724
19 HARMONY  2132793.85.%2038475
20 MAS  1998733.79.%61175

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Major Moves Down
SharenameSaleMove% MoveVolume
1 EHSV  225-60-21.05.%55874
2 ASTRAPAK  400-70-14.89.%909482
3 ATLATSA  205-25-10.87.%60980
4 MONTAUK  342-26-7.07.%376175
5 AVENG  1270-95-6.96.%4442159
6 BRIMST-N  1700-95-5.29.%20104
7 INTEWASTE  140-7-4.76.%16000
8 BASREAD  325-15-4.41.%850300
9 DISCOV-N  3252-148-4.35.%624044
10 STEFSTOCK  530-24-4.33.%270179
11 INVPROP  1735-74-4.09.%576814
12 EQUITES  1080-45-4.00.%227315
13 GROUP-5  2430-100-3.95.%419645
14 ETFPLD  9398-385-3.94.%86163
15 CONDUIT  190-7-3.55.%67544
16 TRENCOR  5830-210-3.48.%282295
17 LEWIS  7599-271-3.44.%692221
18 QUANTUMF  360-12-3.23.%578091
19 TRNSHEX  320-10-3.03.%857
20 WORKFORCE  175-5-2.78.%8175

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New Highs
SharenameSaleHighMove% MoveVolume
1 SEKUNJALO  1992001910.56.%164546
2 AFRO-C  639639213.40.%509108
3 RESILIENT  10450104712802.75.%1915576
4 EOH  15255153904052.73.%715025
5 TFG  17988181983331.89.%1339011
6 ATT  2499251540.16.%2458063
7 CAPITEC  47200479000.266585
8 INVPLC  1070010946-80-0.74.%2069076
9 INVLTD  1061810875-81-0.76.%1003561
10 OLDMUTUAL  41334189-34-0.82.%5059789
11 RMBH  68637061-109-1.56.%1818836
12 MONDIPLCP  2447725147-508-2.03.%356487
13 MONDILTDP  2430125279-543-2.19.%314684
14 NETCARE  41914405-106-2.47.%3104770

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New Lows
SharenameSaleLowMove% MoveVolume
1 ASTRAPAK  400400-70-14.89.%909482
2 AVENG  12701270-95-6.96.%4442159
3 TRENCOR  58305789-210-3.48.%282295
4 ELBGROUP  42002550-99-2.30.%490
5 KUMBAIO  1679916780-328-1.92.%549392
6 ALTRON-P  16051555-1-0.06.%80369
7 MRHLD  14101362271.95.%798789

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Index Summary
Index NameRPMove% Move
Top 4046,269.2766.700.14%
Mid Cap73,134.661072.861.49%
Small Cap59,047.52-139.32-0.24%
Resource 2040,810.23946.312.37%
Industrial 2566,416.32-260.00-0.39%
Financial 1517,129.59-2.15-0.01%
Financial & Ind. 3071,391.13-246.61-0.34%
All Share52,300.24161.090.31%
Oil & Gas 29,292.32229.910.79%
Mining 24,929.77667.092.75%
Gold Mining1,172.3944.913.98%
Platinum Mining31.10.973.22%
GENERAL MINING7,294.38184.042.59%
Oil & Gas Producers 15,749.94123.620.79%
Basic Materials 23,244.16492.272.16%
Chemicals 22,339.28134.300.60%
Forestry & Paper 41,807.77-517.16-1.22%
Industrial Metals 10,522.67-95.82-0.90%
Industrials 46,285.6889.310.19%
General Industrials 164.77.370.23%
Consumer Goods 66,535.74-433.97-0.65%
Automobiles & Parts 7,622.17-76.99-1.00%
Household Goods450.8930.61%
Health Care 11,000.59-22.40-0.20%
Beverages 229.61-2.66-1.15%
Index NameRPMove% Move
Food Producers 9,256.03109.641.20%
Personal Goods 1,040.51-7.39-0.71%
Consumer Services 15,674.35-15.13-0.10%
General Retailers 82,612.81767.830.94%
Travel & Leisure 6,171.64-66.08-1.06%
Media 374.92-4.30-1.13%
Support Services 3,007.23-11.87-0.39%
Telecommunications 10,762.9271.210.67%
Financials 44,799.4059.260.13%
Banks 78,826.94182.450.23%
Non-life Insurance 58,701.08.000.00%
Life Insurance 43,609.08-61.71-0.14%
General Financial 4,105.64-16.46-0.40%
Technology 59,935.92955.371.62%
SHARIAH TOP40 3,510.99411.19%
FTSE/JSE SHARIAH ALL3,777.98491.33%
COAL MINING12,313.07-32-0.26%
FTSE JSE Fledgling 6,759.97-36-0.54%
FTSE/JSE Alt X 1,526.65261.75%
RESOURCE 22,389.785272.41%
DIVIDEND PLUS238.0210.29%
FTSE/JSE RAFI 409,785.15810.84%
Capped Top 4024,684.66400.16%
Capped All Share26,527.63820.31%
JSE TABACO 8,388.15-93-1.10%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
18/03/2015CHOPDecember 2014 (Interim)
18/03/2015CHOPPIESPDecember 2014 (Interim)
18/03/2015HOWDENDecember 2014 (Final)
18/03/2015S.OCEANDecember 2014 (Final)
19/03/2015ANCHORMarch 2015 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
ECSP A211/03/1526/03/1507/04/15ZAR 0.6849
ECSP C211/03/1526/03/1507/04/15ZAR 0.9075
RMBH11/03/1520/03/1530/03/15ZAR 1.2200
ASCENDIS11/03/1508/05/1518/05/15ZAR 0.0800
FIRSTRAND10/03/1520/03/1530/03/15ZAR 0.9300
Ex Div**
Share NameDec-DateLDTPay-DateAmount
GRINDROD PREF25/02/1513/03/1523/03/15ZAR 4.0900
CAPITEC-P27/02/1513/03/1523/03/15ZAR 3.8223
PSGFIN PREF27/02/1513/03/1523/03/15ZAR 3.8223
MASSMART26/02/1513/03/1523/03/15ZAR 2.7500
DELTA09/02/1513/03/1523/03/15ZAR 2.5000

Upcoming AGMs**
CodeCompany NameDateStatus
REBRebosis Property Fund Ltd.18/03/2015Confirmed

Stock Exchange News Service
17/03/201517:45DEVELOPMENT BANK OF SOUTHERN AFRICA - Amended Tap Issue Listing Announcement - D...
17/03/201517:45CHEMICAL SPECIALITIES LIMITED - Notice of commencement of business rescue procee...
17/03/201517:44CITY LODGE HOTELS LIMITED - Director's dealings in securities
17/03/201517:13INGUZA INVESTMENTS (RF) LIMITED - ING298 - New Instrument Listing
17/03/201517:09HUDACO INDUSTRIES LIMITED - Disclosure of disposal of securities
17/03/201517:05MPACT LIMITED - Notice of provision of direct or indirect financial assistance i...
17/03/201517:00PINNACLE HOLDINGS LTD - Dealing in securities
17/03/201517:00BAYPORT SECURITISATION (RF) LTD - Bayport Securitisation (RF) Ltd: Rating upgrad...
17/03/201516:56SYNTHESIS FUNDING LIMITED - New Financial Instrument Listing - SY1233
17/03/201516:38KIBO MINING PLC - New Broker Appointment
17/03/201516:30FAIRVEST PROPERTY HOLDINGS LIMITED - Acquisition of a New Property Portfolio
17/03/201516:16GROWTHPOINT PROPERTIES LIMITED - Dealing in securities by an executive of a majo...
17/03/201516:00LIBERTY HOLDINGS LIMITED - Dealings in Securities by a Director
17/03/201516:00CLOVER INDUSTRIES LIMITED - Dealing in Share Appreciation Rights (SARs) by direc...
17/03/201515:55OLD MUTUAL PLC - Public Opening Position Disclosure/Dealing Disclosure by a Pers...
17/03/201515:39DELTA EMD LIMITED - Completion of Black Rock Calciner Plant disposal
17/03/201515:35OLD MUTUAL PLC - Public Opening Position Disclosure/Dealing Disclosure by a Pers...
17/03/201515:30POYNTING HOLDINGS LIMITED - Dealings in Securities by a Director of a Major Subs...
17/03/201515:20OLD MUTUAL PLC - Public Opening Position Disclosure/Dealing Disclosure by a Pers...
17/03/201515:10IVUZI INVESTMENTS LIMITED - IVA512 - Full Capital Redemption
17/03/201514:57FIRSTRAND BANK LIMITED - FRX26-Listing of Tap Issue
17/03/201514:50OLD MUTUAL PLC - Public Opening Position Disclosure/Dealing Disclosure by a Pers...
17/03/201514:30OLD MUTUAL PLC - Public Opening Position Disclosure/Dealing Disclosure by a Pers...
17/03/201514:28ASTRAL FOODS LIMITED - General Trading Update
17/03/201514:15OLD MUTUAL PLC - Public Opening Position Disclosure/Dealing Disclosure by a Pers...
17/03/201514:15FORTRESS INCOME FUND LIMITED - Dealing in securities by an associate of a direct...
17/03/201514:08TRUSTCO GROUP HOLDINGS LIMITED - Dealings in Trustco Securities by Executive Dir...
17/03/201514:00OLD MUTUAL PLC - Public Opening Position Disclosure/Dealing Disclosure by a Pers...
17/03/201513:12THE STANDARD BANK OF SA LTD - The Standard Bank of South Africa Limited CLN396
17/03/201512:00THE SA NATIONAL ROADS AGENCY SOC LTD - SANRAL change of debtsponsor
17/03/201511:37WILDERNESS HOLDINGS LIMITED - Cautionary announcement
17/03/201511:00GROWTHPOINT PROPERTIES LIMITED - GRT06 - Interest Rate Reset
17/03/201510:50GROWTHPOINT PROPERTIES LIMITED - GRT04 - Interest Rate Reset
17/03/201510:45ACCENTUATE LIMITED - Legal Proceedings: 2013 Annual General Meeting (AGM) of Acc...
17/03/201510:40RCL FOODS LIMITED - Dealings in securities by a director of a major subsidiary
17/03/201510:35BANK WINDHOEK LIMITED - Interest Rate Reset Announcement - BWZJ17
17/03/201510:34NEWFUNDS COLLECTIVE INVEST SCHEME - NFGOVI - Additional listing of NewFunds ETF'...
17/03/201510:13ESKOM HOLDINGS SOC LIMITED - Tap Issues ES26 ES33 EL36 EL037
17/03/201510:00TORRE INDUSTRIES LIMITED - Dealing in securities by a director
17/03/201509:57ILIAD AFRICA LIMITED - Audited Preliminary Summarised Consolidated Financial Res...
17/03/201509:41LODESTONE REIT LIMITED - Dealing in securities by an associate of a director of ...
17/03/201509:30LONMIN PLC - Regulatory Release Moolman Confirmed As Chief Operating Officer
17/03/201509:25HUDACO INDUSTRIES LIMITED - Officers dealing in securities
17/03/201509:20CADIZ HOLDINGS LIMITED - Disclosure of share transaction
17/03/201509:15FIRESTONE ENERGY LIMITED - Firestone and The Waterberg Coal Company Limited Grou...
17/03/201509:00KIBO MINING PLC - Proceeds of Placing
17/03/201509:00DIAMONDCORP PLC - US$7M royalty financing
17/03/201509:00THE SA NATIONAL ROADS AGENCY SOC LTD - HWAY 34 - Tap Issuance
17/03/201508:55THE WATERBERG COAL COMPANY LTD - Trading Halt and Group Financing Announcement
17/03/201508:46FIRESTONE ENERGY LIMITED - Request for Trading Halt
17/03/201508:36THE WATERBERG COAL COMPANY LTD - Notification of Release of Financial Report for...
17/03/201508:00ASPEN PHARMACARE HOLDINGS LIMITED - Dealing in securities by directors
17/03/201508:00MURRAY & ROBERTS HOLDINGS LIMITED - Investor Presentation at the Merrill Lynch I...
17/03/201508:00ANGLOGOLD ASHANTI LIMITED - Award of options (LTIP 2015) to Executive Directors ...
17/03/201507:55Firestone Energy Limited - Interim Financial Report 31 December 2014
17/03/201507:15CLOVER INDUSTRIES LIMITED - Unaudited interim consolidated results for the six m...
17/03/201507:07ANGLO AMERICAN PLC - Anglo American Capital plc - Publication of Offering Circu...
17/03/201507:06ANGLO AMERICAN PLC - RNS publication form
17/03/201507:05ANGLO AMERICAN PLC - Anglo American Long Term Incentive Plan LTIP
17/03/201507:05BHP BILLITON PLC - Demerger to Simplify BHP Billiton
17/03/201507:05BHP BILLITON PLC - Demerger of South32 by BHP Billiton (coversheet)

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