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Trading Update and Statement for the Six Months Ended 31 Decmber 2014
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
2014
The following update is based on the latest available trading
information for the six months ended 31 December 2014.
Segmental revenue for the six months ended 31 December 2014
2014 2013 Change
Rm Rm %
Entyce beverages 1,569 1,416 10.8
Snackworks 1,825 1,614 13.1
I&J 982 824 19.2
Personal care 541 574 (5.7)
Footwear and apparel 1,081 967 11.8
Corporate 4 5
GROUP 6,002 5,400 11.1
Overall sales performance was sound in a tough trading environment
with the group realising higher selling prices in all categories
following significant accumulated cost pressure from the weaker
Rand. Volume growth was achieved in many of our categories and
I&J’s export revenue benefitted from the Rand weakness. Indigo’s
revenue from owned brands increased by 8% however total revenue
declined following the revision of trading terms with Coty.
Entyce and Snackworks both performed well in the constrained
environment and Spitz enjoyed continued strong demand for its core
brands and achieved record sales in December. I&J’s profit growth
for the period was tempered by unrealised losses on fuel hedges
following the significant decline in oil prices. The consolidated
gross profit margin and operating profit margin both improved in
comparison to the same period in the prior year.
Other factors impacting on the consolidated results for the first
semester, compared to the same period in the prior year, were:
- The first semester of the prior financial year included a net
after tax capital gain of R122,0 million in respect of a
payment of R150,0 million from Coty to Indigo Brands
Proprietary Limited following the revision of their commercial
relationship.
- The weighted average number of shares in issue during the
period was 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 black staff empowerment
share scheme.
The following disclosure is made in accordance with Section 3.4 (b)
of the Listings Requirements of the JSE Limited:
- Consolidated headline earnings per share for the six months
ended 31 December 2014 are expected to increase by between 8%
and 11% over the comparable period in the prior year. In cents
per share this will be an increase from last year’s 230,6
cents to a range between 249 and 256 cents per share;
- Consolidated earnings per share for the six months ended 31
December 2014, including capital gains and losses, are
expected to decrease by between 5% and 8% over the comparable
period in the prior year. In cents per share this will be a
decrease from last year’s 269,6 cents to a range between 248
and 256 cents per share;
It is expected that AVI will release its results for the six months
ended 31 December 2014 on or about 9 March 2015.
The information above has not been reviewed and reported on by the
Group’s auditors.
Illovo
23 January 2015
Sponsor The Standard Bank of South Africa Limited
Enquiries +(27) 11 502 1300
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