Wrap Text
AVI LIMITED
Registration number 1944/017201/06
Share code: AVI
ISIN: ZAE000049433
("AVI" or "the Company" or "the Group")
TRADING UPDATE AND TRADING STATEMENT FOR THE YEAR ENDED 30 JUNE 2024
TRADING UPDATE
AVI's results for the year ended 30 June 2024 reflect a pleasing performance
in a challenging environment. The effective management of selling price
increases, strong cost control, the benefits of investments in improving
the efficiencies of our production facilities and ongoing hedging supported
good operating leverage and underpinned the operating profit growth for the
year.
Segmental revenue for the year ended 30 June 2024
2024 2023 %
Rm Rm Change
Food & Beverage 13 082,5 11 999,4 9,0
Entyce Beverages 5 025,4 4 251,6 18,2
Snackworks 5 597,9 5 261,2 6,4
I&J 2 459,2 2 486,6 (1,1)
Fashion brands 2 779,8 2 920,2 (4,8)
Personal Care* 1 022,5 1 223,3 (16,4)
Footwear & Apparel 1 757,3 1 696,9 3,6
Group 15 862,3 14 919,6 6,3
*As of 1 July 2023, Personal Care revenue does not include any contribution
from the Coty business
Group revenue increased by 6.3% underpinned by selling price increases to
off-set cost pressures and volume growth in the beverage categories. The
Group's consolidated gross profit grew ahead of revenue supported by
improved gross profit margin in most categories. Selling and administrative
expenses increased at rates marginally higher than CPI.
Entyce delivered strong growth supported by a combination of higher selling
prices, improved sales volumes across all its categories and operational
leverage. Creamer performed particularly well, gaining market share and
benefiting from additional production efficiencies following a substantial
investment in the facility as well as competitor supply disruptions.
Snackworks growth slowed through the second half with volumes across both
the biscuit and snacks portfolio's ending lower. Contributions from
innovation launched last year and during the last quarter were pleasing and
continue to gain volumes. Margins were effectively managed and supported by
improvements in factory efficiencies and an improved sales mix in the snack
brands.
I&J had a difficult year with increased competition and reduced demand in
key abalone markets constraining selling prices and volumes. Fishing
revenues improved through the second semester with better catch rates
compared to the first half, benefits from a weaker Rand and higher selling
prices. I&J's operating profit margin for the year was similar to the prior
year benefitting from lower fuel prices, restructuring initiatives
implemented in the first half and the non-recurrence of last year's fire at
I&J's value-added plant but partially offset by an unfavourable abalone
biological asset fair value adjustment, the deleveraging impact of lower
volumes, an unfavourable abalone sales mix and the non-cash cost associated
with the new BBBEE structure implemented in July 2023.
Indigo's personal care profit declined marginally on last year due to the
cessation of the Coty distribution agreement from July 2023. Indigo's owned
brands performed soundly with improved margins supported by efficiencies
from range rationalization initiatives and the loss of the lower margin
Coty business. The footwear and apparel brands had a challenging second
semester with constrained demand exacerbated by increased discounting in
the sector, particularly in apparel. Core footwear brands performed well.
Net finance costs were marginally lower than last year with the impact of
lower average borrowing levels partially offset by higher interest rates.
The effective tax rate is largely in line with the corporate tax rate of
27%.
CAPITAL GAINS
There were no material capital items in the current financial period.
CONSOLIDATED HEADLINE AND ATTRIBUTABLE EARNINGS
The weighted average number of shares in issue is expected to be 0,1%
higher than last year due to the issue of new shares in terms of the
Group's various share incentive schemes.
TRADING STATEMENT
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
2024 are expected to increase by between 21% and 25% over the prior
comparative period, translating into an increase from last year's
553,6 cents to a range of between 669,9 and 692,0 cents per share;
and
- Consolidated earnings per share for the year ended 30 June 2024,
including capital gains and losses, are expected to increase by
between 20% and 24% over the prior comparative period, translating
into an increase from last year's 555,6 cents to a range of between
666,8 and 689,0 cents per share.
It is expected that AVI will release its full results for the year ended
30 June 2024 on or about 9 September 2024.
The information above has not been reviewed and reported on by the Group's
external auditors.
Illovo
12 July 2024
Sponsor
The Standard Bank of South Africa Limited
Date: 12-07-2024 02:46:00
Supplied by www.sharenet.co.za
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
