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Voluntary Trading Statement And Update For The Year Ended 30 June 2025
AVI LIMITED
Registration number 1944/017201/06
Share code: AVI
ISIN: ZAE000049433
("AVI" or "the Company" or "the Group")
VOLUNTARY TRADING STATEMENT AND UPDATE FOR THE YEAR ENDED 30 JUNE 2025
AVI's financial results for the year ended 30 June 2025 improved despite
the prior year's 21,7% annual operating profit growth and exceptional 27,8%
prior year's second semester profit growth. This financial year's second
semester's operating profit growth was 6.4% despite the high prior year
base. The consumer environment was challenging throughout this financial
year with anaemic demand in many key categories.
Segmental revenue for the year ended 30 June 2025
2025 2024 %
Rm Rm Change
Food & Beverage 13 478,0 13 082,5 3,0
Entyce Beverages 5 298,4 5 025,4 5,4
Snackworks 5 611,8 5 597,9 0,2
I&J 2 567,8 2 459,2 4,4
Fashion brands 2 543,5 2 779,8 (8,5)
Personal Care 924,3 1 022,5 (9,6)
Footwear & Apparel 1 619,2 1 757,3 (7,9)
Group 16 021,5 15 862,3 1,0
Group revenue increased by 1.0% underpinned by selling price increases to
ameliorate input cost pressures partially offset by lower sales volumes in
all our categories. The Group's consolidated gross profit grew ahead of
revenue supported by improved gross profit margins in our beverage
categories with gross margins across the remainder of the business
effectively managed. Despite increased investment in marketing activity to
support our brands and innovation, and once-off costs of R42,0 million
associated with restructuring initiatives, selling and administrative
expenses were well contained ending marginally lower than last year. This
together with the improved gross profit, supported growth in the Group's
operating profit of 7.8%. The Group's operating profit margin was 6.7%
higher than the prior year.
Entyce delivered profit growth, off a strong prior year base, supported by
higher selling prices, the annualisation of efficiencies from factory
automation, effective cost management and operational leverage. Snackworks
operating profit improved, benefiting from a stronger second half and well
supported by effective cost management. Sales volumes were supported by
strong innovation in the second semester. Margins were supported by lower
selling and administrative costs, despite increased marketing support.
I&J's operating profit improved with a stronger fishing performance offset
by a decline in the abalone category. The abalone category continued to
experience weak selling prices, poor demand in key Asian markets and an
unfavourable biological asset revaluation of R38,1 million. Fishing profits
improved with benefits from improved selling prices, capacity from the new
freezer vessel, favourable realised currency rates, lower fuel prices and
marginally better catch rates.
Indigo had a difficult year with the operating profit performance negatively
impacted by aggressive competition in the deodorant body spray category.
Costs were well contained and benefitted from restructuring initiatives
implemented last year, however, this was not sufficient to ameliorate the
impact of lower revenue.
Footwear and apparel operating profit ended lower with the challenging first
semester further impacted by a difficult second semester. Demand was subdued
and impacted by widespread discounting by apparel and footwear retailers
and exacerbated by supply chain disruptions in the first semester impacting
sales in SPITZ's critical December trading month. The second half
performance was further impacted by the decision to close the Green Cross
retail business which required increased discounting, with lower gross
margins, and the incurrence of once-off closure costs.
Net finance costs were higher than last year due to increased average
borrowing levels following the payment of the special dividend in October
2024 partially offset by lower interest rates. The effective tax rate is
marginally higher than last year.
CAPITAL GAINS
Capital gains increased because of the disposal of the assets and business
conducted by I&J's Umsobomvu joint venture with effect from July 2024. This
transaction resulted in a capital gain of R12,6 million after taxation.
CONSOLIDATED HEADLINE AND ATTRIBUTABLE EARNINGS
The weighted average number of shares in issue is expected to be 0,3%
higher than last year due to the issue of new shares in terms of the
Group's various share incentive schemes.
We hereby advise shareholders, in accordance with Section 3.4 (b) of the
Listings Requirements of the JSE Limited, that:
- Consolidated headline earnings per share for the year ended 30 June
2025 are expected to increase by between 5.0% and 7.0% over the
prior year, translating into an increase from last year's 687,1 cents
to a range of between 721,5 and 735,2 cents per share; and
- Consolidated earnings per share for the year ended 30 June 2025,
including capital gains and losses, are expected to increase by
between 6.0% and 8.0% over the prior year, translating into an
increase from last year's 682,5 cents to a range of between 723,5
and 737,1 cents per share.
It is expected that AVI will release its full results for the year ended
30 June 2025 on or about 8 September 2025.
The information above has not been reviewed and reported on by the Group's
external auditors.
Illovo
25 July 2025
Sponsor
The Standard Bank of South Africa Limited
Date: 25-07-2025 10:30:00
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