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AVI - AVI Limited - Trading update and statement for the year ending 30 June 2011 AVI Limited (Registration number 1944/017201/06) Share code: AVI ISIN: ZAE000049433 ("AVI" or "the Group") TRADING UPDATE AND STATEMENT FOR THE YEAR ENDING 30 JUNE 2011 The following update is based on the latest available trading information and covers performance for the Group`s continuing operations. Segmental revenue for continuing operations for the eleven months ended 31 May 2011 Revenue 2011 2010 Change Rm Rm % Entyce beverages* 2 065 1 984 4,1 Snackworks 1 953 1 906 2,5 Chilled & frozen 1 585 1 543 2,7 convenience brands** Fashion brands - personal 821 741 10,8 care Fashion brands - footwear & 893 728 22,7 apparel Corporate 6 6 GROUP 7 323 6 908 6,0 * = includes Out Of Home comprising Ciro and Sir Juice (Sir Juice was sold in November 2010) ** = excludes Alpesca Group revenue for the eleven months to May 2011 was 6,0% higher than last year. Most business units achieved higher sales volumes despite constrained consumer spending with the fashion brands portfolio performing particularly well. The consolidated gross profit margin for the period was higher than last year despite some pressure in the fourth quarter from high raw material costs. I&J has delivered higher profits in the second semester, enjoying higher volumes in line with increased quota as well as better exchange rates and export prices than in the second half of last year. The higher sales volumes and improved gross profit margin have resulted in strong growth in operating profit and a further improvement in the operating profit margin. The Australian Simplot Joint Venture has performed in line with last year and net finance charges continue to track well below last year due to lower debt levels and lower interest rates. EXPECTED RESULTS FOR CONTINUING OPERATIONS The following statement is made in accordance with Section 3.4 (b) of the Listings Requirements of the JSE Limited: * Consolidated headline earnings per share for the continuing operations of the Group for the year ending 30 June 2011 are expected to increase by between 23% and 33% over the headline earnings per share for the year ended 30 June 2010; * Consolidated earnings per share for the continuing operations of the Group for the year ending 30 June 2011, including net capital losses on the disposal of assets, are expected to reflect an increase of between 23% and 33% over the comparative figure for the year ended 30 June 2010. DISCONTINUED OPERATIONS - ALPESCA I&J sold its shares in Alpesca to an Argentinean consortium during May 2011 for a consideration of USD10 million plus transfer of loan guarantees of USD4 million. Consequently the group results for the year ending 30 June 2011 will include a capital loss on disposal of approximately R40 million. An impairment of R76,5 million was raised in the prior year. Alpesca`s losses for the ten months to the end of April 2011 will be included in AVI`s consolidated results. These losses are expected to be lower than those recorded for the 2010 financial year. EXPECTED RESULTS FOR TOTAL OPERATIONS The following statement is made in accordance with Section 3.4 (b) of the Listings Requirements of the JSE Limited: * Consolidated headline earnings per share for the total operations of the Group for the year ending 30 June 2011 are expected to increase by between 28% and 38% over the headline earnings per share for the year ended 30 June 2010; * Consolidated earnings per share for the total operations of the Group for the year ending 30 June 2011, including net capital losses on the disposal of assets, are expected to reflect an increase of between 38% and 48% over the earnings per share for the year ended 30 June 2010. It is expected that AVI will release its final results for the year ending 30 June 2011 on the 5th September 2011. The information above has not been reviewed and reported on by the Group`s auditors. Illovo 22 June 2011 Sponsor Standard Bank Enquiries +(27) 11 502 1300 Date: 22/06/2011 15:20:01 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.
