AVI LIMITED - Voluntary trading update and statement for the year ended 30 June 2013

Voluntary trading update and statement for the year ended 30 June 2013

AVI Limited
(Registration number 1944/017201/06)
Share code: AVI
ISIN: ZAE000049433
(“AVI” or “the Group”)

           VOLUNTARY TRADING UPDATE AND STATEMENT FOR THE YEAR ENDED 30 JUNE 2013

The following voluntary update is based on the latest available trading information for the year ended 30 June 2013 for
the Group’s continuing operations.

Segmental revenue for continuing operations for the year ended 30 June 2013

                                                              2013             2012           Change
                                                               Rm               Rm                 %

 Entyce beverages                                            2,415             2,331               3.6
 Snackworks                                                  2,681             2,429              10.4
 I&J                                                         1,592             1,515               5.1
 Fashion brands                                              2,519             2,005              25.6
 Corporate                                                      12                 7
                    GROUP                                    9,219             8,287             11.2


Revenue growth of 11,2% for the year reflects good overall performance in a tough trading environment characterised
by constrained consumer spending and increasing competition in some categories. An improved performance from I&J
supported strong growth of 16% in second semester operating profit. The full year consolidated operating profit
margin was in line with last year and group operating profit for the year increased by approximately 11%.


Business unit performance summary:

    -   Entyce’s performance was adversely impacted by low volume growth and increased competition in mixed
        instant coffee. Tea and creamer sales volumes increased and profit margins remain strong in all categories.
    -   Snackworks delivered record biscuit sales volumes and operating profit which was supported by improved
        profitability in the snacks category.
    -   I&J had a much improved second semester due to improved fishing performance and the weaker rand which
        largely offset the year-on-year decline in first semester profit.
    -   Strong growth in the fashion brands business unit reflects the acquisition of Green Cross and good volume
        growth in Spitz. Indigo achieved sound profit growth despite increased competition in deodorant body sprays.


Other factors impacting on headline earnings for the year were:

    -   Equity earnings from I&J’s joint venture with Simplot Australia (Pty) Ltd were materially lower in the first
        semester due to tough retail trading conditions in Australia combined with less benefit from foreign exchange
        movements. Earnings from the joint venture improved in the second half but did not recover the first half
        deficit;
    -   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 due to lower tax on dividends with Secondary Tax on Companies being
        replaced by the Withholding Tax on Dividends;
    -   The weighted average number of shares in issue during the period was 2,6% 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 year ended 30
        June 2013 are expected to increase by between 5% and 7% over the prior year;

    -   Consolidated earnings per share for the continuing operations of the Group for the year ended 30 June 2013,
        including capital gains and losses on the disposal of assets, are expected to increase by between 6% and 8%
        over the prior year;

    -   Consolidated headline earnings per share for the total operations of the Group for the year ended 30 June
        2013 are expected to increase by between 5% and 7% over the prior year;

    -   Consolidated earnings per share for the total operations of the Group for the year ended 30 June 2013,
        including capital gains and losses on the disposal of assets, are expected to increase by between 7% and 9%
        over the prior year.

It is expected that AVI will release its results for the year ended 30 June 2013 on 9 September 2013.

The information on which this voluntary trading update and statement has been based has not been reviewed or
reported on by the Group’s auditors.

Illovo
26 July 2013

Sponsor                   The Standard Bank of South Africa Limited
Enquiries                 +(27) 11 502 1300

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