Sharenet Sites 
Sharenet Sites
Trading update and statement for the six months ended 31 December 2012
AVI Limited
(Registration number 1944/017201/06)
Share code: AVI
ISIN: ZAE000049433
(“AVI” or “the Group”)
TRADING UPDATE AND STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2012
The following update is based on the latest available trading information for the six months ended 31
December 2012 for the Group’s continuing operations.
Segmental revenue for continuing operations for the six months ended 31 December 2012
Restated*
2012 2011 Change
Rm Rm %
Entyce 1,310 1,225 6.9
Snackworks 1,424 1,290 10.4
I&J 720 749 (3.9)
Fashion brands 1,427 1,149 24.2
Corporate 6 3
GROUP 4,887 4,416 10.7
*Comparatives have been restated to exclude Real Juice which has been disclosed as a
discontinued operation.
With the exception of I&J, all of the group’s business units performed solidly in a tough trading environment
characterised by constrained consumer spending and increasing competition in some categories. Spitz
continued to produce pleasing growth.
I&J had an unexpectedly difficult semester compared to the first half of last year with a number of material
factors constraining profitability. Sales volumes declined by 14% due largely to low fishing fleet availability
caused by planned and unplanned vessel maintenance and poor catch rates on a comparable basis, while a
material increase in fuel costs for the fishing fleet following the termination of the supply of our cheaper
marine fuel blend in the second half of the last financial year, and lower foreign exchange gains than
registered in the prior period, impacted on profits.
Consolidated profit margins have largely been maintained despite pressure from a weaker Rand on imports
and the decrease in I&J’s profit, with several categories benefitting from volume leverage; notably creamer,
biscuits and footwear & apparel.
Green Cross has performed in line with expectations and contributed to strong volume growth in fashion
brands.
Other factors impacting on the consolidated results for the first semester were:
- Equity earnings from I&J’s joint venture with Simplot Australia (Pty) Ltd were materially lower due to
tough retail trading conditions in Australia combined with less benefit from foreign exchange
movements;
- Net finance charges increased in line with higher debt levels following the acquisition of Green Cross
and the special dividend of 180 cents per share paid in October 2012;
- The effective tax rate decreased as the prior period charge included R24,4 million of Secondary Tax
on Companies which fell away with the move to Withholding Tax on Dividends;
- The weighted average number of shares in issue during the period was 2,7% higher than in the same
period last year due to the issue of new shares in terms of the Group’s various share incentive
schemes, particularly the Black Staff Empowerment Scheme which reached its first normal vesting
date in January 2012.
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 six
months ended 31 December 2012 are expected to increase by between 6% and 9% over the
comparable period in the prior year;
- Consolidated earnings per share for the continuing operations of the Group for the six months ended
31 December 2012, including capital gains and losses on the disposal of assets, are expected to
increase by between 6% and 9% over the comparable period in the prior year;
- Consolidated headline earnings per share for the total operations of the Group for the six months
ended 31 December 2012 are expected to increase by between 6% and 9% over the comparable
period in the prior year;
- Consolidated earnings per share for the total operations of the Group for the six months ended 31
December 2012, including capital gains and losses on the disposal of assets, are expected to
increase by between 10% and 13% over the comparable period in the prior year.
I&J’s catch rates improved in the latter part of the period under review and should these catch rates be
sustained, the increased volumes, together with the benefit of the weaker Rand on export sales, should
support a materially improved second half for I&J.
It is expected that AVI will release its results for the six months ended 31 December 2012 on 11 March 2013.
The information above has not been reviewed and reported on by the Group’s auditors.
Illovo
15 January 2013
Sponsor The Standard Bank of South Africa Limited
Enquiries +(27) 11 502 1300
Date: 15/01/2013 09:30:00 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.
