AVI LIMITED - Trading update and statement

Trading update and statement

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

  TRADING UPDATE AND STATEMENT

Trading update for the eleven months ended 31 May 2014

Segmental revenue for continuing operations for the eleven months ended 31 May 2014


                                                           2013            2012          Change
                                                            Rm              Rm               %

 Entyce beverages                                         2,434            2,186           11.3
 Snackworks                                               2,817            2,443           15.3
 I&J                                                      1,627            1,438           13.1
 Fashion brands                                           2,480            2,349            5.6
 Corporate                                                    9               11
                GROUP                                     9,367            8,427           11.2


Overall sales performance has been sound with strong volume performance in several of our categories
notwithstanding the pressure on consumer spending. In addition, I&J’s export revenues benefitted materially
from the weaker Rand particularly in the second semester of the financial year.

The weaker Rand resulted in material input cost increases which have not been fully recovered in the current
trading period, particularly in the Spitz footwear business which has come off a period of high profit margins
supported by an extended period of Rand stability. Price increases were implemented across all of our
businesses in the second semester to ameliorate the pressure on gross profit margins going into the next
financial year.

Selling and administrative expenses have been well controlled and together with volume leverage and
increased profitability in I&J, have resulted in the consolidated operating profit margin being maintained in line
with that in the prior financial year.

Other factors that will impact on the consolidated results for the year to June 2014 are:

   -    The weighted average number of shares in issue during the period is expected to be 2,2% 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, including the AVI Black Staff Empowerment Share scheme.
   -    As announced on 7 November 2013, Indigo Brands Proprietary Limited received a once-off pre-tax
        payment of R150,0 million from Coty following the revision of their commercial relationship. The net
        after tax gain of R122,0 million is included in the results as a capital item.

Trading statement

In accordance with Section 3.4 (b) of the Listings Requirements of the JSE Limited the company is required to
announce that consolidated earnings per share for the continuing operations of the Group for the year
ending 30 June 2014, including capital gains and losses, are expected to increase by more than 20%
compared to the prior year.

AVI will release an updated trading statement in July 2014 confirming ranges for the increases in headline
and attributable earnings, once the Group has reasonable certainty in this regard.

It is expected that AVI will release its results for the year ended 30 June 2014 on or about 8 September 2014.

The information above has not been reviewed and reported on by the Group’s auditors.

Illovo
24 June 2014

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

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