Wrap Text
Results for the year ended 30 June 2015
AVI Limited
ISIN: ZAE000049433 Share code: AVI Registration number: 1944/017201/06
(“AVI” or “the Group” or “the Company”)
Results for the year ended 30 June 2015
For more information, please visit our website: www.avi.co.za
key features
Strong brands underpin a sound performance in a challenging environment
Revenue up 9,5% to R11,24 billion
Operating profit up 11,9% to R1,92 billion
Cash from operations up 13,9% to R2,40 billion
Capital expenditure of R849 million on efficiency, capacity and retail initiatives
Return on capital employed of 28,3%
Headline earnings per share up 9,4% to 420 cents
Final dividend of 200 cents per share, total normal dividend up 10,7% to 332 cents per share
Special dividend of 200 cents per share paid in April
Group overview
AVI’s results for the 12 months ended 30 June 2015 reflect a sound overall performance in a period of increasing
pressure on consumer spending and rising input costs, stemming largely from the weaker Rand.
Revenue increased by 9,5%, from R10,27 billion to R11,24 billion, with the Group realising higher selling prices in
all categories following significant accumulated cost pressure as a result of the weakening of the Rand over the
last few years. In addition, volume growth was achieved in many of our categories and I&J’s export revenue benefited
from the Rand weakness. Gross profit rose by 11,2% to R4,92 billion with the consolidated gross profit margin
improving from 43,1% to 43,8%. Operating profit increased by 11,9% from R1,71 billion to R1,92 billion with the
growth in gross profit supported by good containment of selling and administrative expenses across the Group. The
operating profit margin increased from 16,7% to 17,0%.
Entyce delivered a strong result for the year, recovering some of the profit margin given up in the tough trading
conditions experienced over the last few years and achieving good volume growth in Creamer. Snackworks continued to
perform well with volume growth in Biscuits and further improvements in profit margin. I&J benefited materially from
the weaker Rand, supported by good processing efficiency, however, profit growth for the year was constrained by lower
fishing catch rates in the second semester, which resulted in higher hake catch costs and constrained sales volumes. At
Indigo, owned brands performed well in a competitive environment and the Coty profit contribution was preserved in the
new relationship. Margins in the Footwear and Apparel businesses have stabilised and profit grew as a result of a
strong performance from Spitz, with growth in both footwear and clothing volumes.
Headline earnings rose by 11,2%, from R1,20 billion to R1,34 billion with the growth in operating profit tempered by
lower earnings from I&J’s joint venture with Simplot in Australia. Headline earnings per share increased 9,4% from
383,6 cents to 419,7 cents with a 1,6% increase in the weighted average number of shares in issue due to the vesting
of employee share options, including the AVI Black Staff Empowerment Scheme.
Attributable earnings, including capital items, were 1,3% higher than those last year, which included a capital
payment of R150,0 million from Coty to Indigo on revision of the trading relationship between them.
Cash generated by operations before working capital changes increased 13,9% to R2,40 billion. Working capital rose
R301,7 million, reflecting volume growth, strong trading at the end of the period and higher stock values from rising
input costs. Capital expenditure of R848,9 million incorporated capacity and efficiency projects in the manufacturing
operations and new and refurbished stores in the retail businesses. Other material cash outflows during the period
were dividends of R1,63 billion and taxation of R487,5 million. Net debt at the end of June 2015 was R1,20 billion
compared to R349,0 million at the end of June 2014.
DIVIDEND
A final dividend of 200 cents per share has been declared, bringing the total normal dividend for the year
to 332 cents per share, an increase of 10,7% on last year.
In line with AVI’s ongoing commitment to return excess cash to shareholders, a special dividend of 200 cents per
share was paid in April 2015, in addition to the normal dividend.
Segmental review
Year ended 30 June
Segmental revenue Segmental operating profit
2015 2014 % 2015 2014 %
Rm Rm change Rm Rm change
Food & Beverage brands 8 407,0 7 598,4 10,6 1 327,0 1 161,5 14,2
Entyce Beverages 3 041,2 2 717,4 11,9 545,2 442,4 23,2
Snackworks 3 405,3 3 057,9 11,4 533,4 474,5 12,4
I&J 1 960,5 1 823,1 7,5 248,4 244,6 1,6
Fashion brands 2 829,2 2 659,3 6,4 602,2 560,1 7,5
Personal Care* 1 033,0 1 043,8 (1,0) 198,0 172,0 15,1
Footwear & Apparel 1 796,2 1 615,5 11,2 404,2 388,1 4,1
Corporate 7,5 9,7 (12,3) (9,1)
Group 11 243,7 10 267,4 9,5 1 916,9 1 712,5 11,9
* Decrease in revenue due to revision of commercial relationship with Coty effective 31 October 2013.
Entyce Beverages
Revenue increased 11,9% to R3,04 billion while operating profit increased 23,2% to R545,2 million with the operating
profit margin at 17,9% compared to 16,3% in the prior year.
Tea revenue increased 9,7% due to price increases necessary to offset rising rooibos tea input costs and the impact
of the weaker Rand on other raw material costs. Coffee revenue was 7,6% up with price increases to ameliorate the
impact of the weaker Rand on raw coffee bean prices. Creamer revenue benefited from higher selling prices and sales
volumes, rising by 23,8%.
The gross profit margin improved with higher selling prices recovering some of the accumulated margin pressure from
rising input costs. Selling and administrative cost increases were well contained, and tea, coffee and creamer all
grew their operating profit and operating profit margin.
Snackworks
Revenue of R3,41 billion was 11,4% higher than last year while operating profit rose 12,4%, from
R474,5 million to R533,4 million. The operating profit margin increased from 15,5% to 15,7%.
Biscuits revenue grew 13,3% with higher selling prices and a 2,4% increase in sales volumes. Snacks revenue increased
5,2% with higher pricing in the category offset by a 2,1% decrease in sales volumes.
Gross profit margin improved due to higher selling prices and higher sales volumes. Increased marketing spend in the
biscuit category to support new product innovation, resulted in a slight improvement in operating margins.
I&J
Revenue increased by 7,5% from R1,82 billion to R1,96 billion while operating profit increased from
R244,6 million to R248,4 million. The operating profit margin decreased from 13,4% to 12,7%.
Revenue growth largely reflects the benefit of the weaker Rand on export sales and increases in selling prices,
offset by lower sales volumes in the second half of the year. Fishing catch rates in the second half of the year
were inconsistent and on average lower than in the first half and the prior year, particularly on the freezer
vessels. This resulted in a material increase in the cost of catching fish, and also resulted in lower sales volumes
for the financial year. As I&J’s hake quota is allocated for calendar years, there is still an opportunity to catch,
process and sell the uncaught portion of the 2015 quota allocation in the period from July to December 2015.
Processing activity was sound, although also impacted by inconsistent catch volumes. Movements in foreign exchange
rates resulted in currency losses this year compared to gains in the prior year.
The higher fishing costs, lower sales volumes and foreign exchange losses offset most of the gain from the weaker
Rand, resulting in a small growth in operating profit for the year.
Fashion brands (Personal Care, Footwear and Apparel)
Revenue rose by 6,4% to R2,83 billion while operating profit increased 7,5% to R602,2 million. The operating profit
margin increased from 21,1% to 21,3%.
In the Personal Care category, Indigo’s revenue from owned brands grew by 10,6% due to volume growth and price
increases, although total revenue declined from November 2013 following the commencement of new trading terms with
Coty. Selling and administrative expenses were well controlled and operating profit grew 15,1% from R172,0 million to
R198,0 million. The operating profit margin increased from 16,5% to 19,2%, partly because of the revised Coty trading
terms which resulted in lower revenue but achieved the same level of operating profit.
The Footwear and Apparel category increased revenue by 11,2% to R1,80 billion while operating profit increased by
4,1% from R388,1 million to R404,2 million. The operating profit margin decreased from 24,0% to 22,5%.
In the Spitz business revenue grew 13,1% as a result of higher selling prices as well as increased footwear and
clothing sales volumes. Core brands performed strongly notwithstanding the constrained consumer environment, while
price increases resulted in gross profit margins in line with last year, having normalised from the very high levels
achieved when the Rand was relatively stable for a protracted period. Operating profit increased from R322,6 million
to R355,7 million and the operating profit margin declined slightly from 25,9% to 25,2%.
In Green Cross revenue growth was inhibited by poor wholesale demand and the refurbishment of 13 of the retail stores
during the year, growing just 2,9% to R336,0 million. Apart from the lost sales from refurbishments, retail stores
performed well with consumers reacting favourably to the new store design. Gross profit margin in the second semester
was higher than in the same period in the prior year, but for the full year was slightly down because of the weaker
Rand,and also due to the cost of high stock levels resulting from changes in product ranging and low wholesale demand.
Overall revenue growth was insufficient to recover the additional fixed costs and operating profit decreased from
R58,8 million to R45,0 million.
OUTLOOK
We expect the current constrained consumer demand environment to persist with the risk that category growth rates are
likely to be muted, and in some cases declining volumes are a possibility. The weaker Rand will put additional pressure
on input costs and selling prices will need to be adjusted to preserve gross margins, with the risk that the higher
prices may further dampen demand.
Any significant further weakening of the Rand will be difficult to offset through price increases with the risk that
gross profit margins may decline in the short term. I&J will introduce two additional vessels into its fishing fleet
in the next few months, which will increase its catching capacity and the proportion of higher-margin products. However,
if the lower catch rates experienced in the last few months persist for the remainder of the year, they will have a
material impact on cost efficiency and sales volumes, and will also limit I&J’s ability to benefit from the weaker
Rand on its exports. Entyce and Snackworks have well established capabilities to defend market share and profit margins,
and will grow sales volumes where there is opportunity. Indigo is maintaining its strong aerosol and colour cosmetics
positions and is performing well in export markets. Spitz, Kurt Geiger and Green Cross retail stores will benefit from
refurbishments and measured space growth, and the decline in the Green Cross wholesale business has largely been
stemmed. Our international business is achieving good revenue growth and continues to focus on growing profitable,
branded market positions supported by our South African manufacturing capability.
We have invested approximately R45 million over the last few years to install back-up power capabilities at most of
our manufacturing sites and retail doors, with further mitigation in progress. Consequently the irregular power supply
during the year did not have a material impact on our results, however, prolonged and severe load shedding or major
power outages could result in significantly higher operating costs and lost sales. Changes to labour legislation have
not had a material impact on results for the year ended 30 June 2015 as they became effective late in the year, but
will be more material in the next year, putting further pressure on costs and profit margins. We continue to invest
in improvements in manufacturing capability and procurement activity to ameliorate these pressures.
The level of net debt increased materially during the year to June 2015, and is likely to remain at this higher
level during the forthcoming year. Together with upward pressure on inflation and interest rates, this will result
in a significant increase in finance costs in the next financial year.
The Board is confident that AVI is well positioned to weather the difficult trading environment while continuing
to pursue growth opportunities from the current brand portfolio and remaining vigilant for brand acquisition
opportunities both domestically and regionally.
The above outlook statements have not been reviewed or reported on by AVI’s auditors.
Gavin Tipper Simon Crutchley
Chairman CEO
7 September 2015
PRELIMINARY SUMMARISED GROUP BALANCE SHEET
Audited at
30 June
2015 2014
Rm Rm
Assets
Non-current assets
Property, plant and equipment 2 839,0 2 317,1
Intangible assets and goodwill 1 146,6 1 146,6
Investments 357,4 406,8
Deferred taxation 30,8 41,8
4 373,8 3 912,3
Current assets
Inventories and biological assets 1 572,5 1 382,7
Trade and other receivables including derivatives 1 625,2 1 509,1
Cash and cash equivalents 462,5 298,5
3 660,2 3 190,3
Total assets 8 034,0 7 102,6
Equity and liabilities
Capital and reserves
Total equity 3 940,5 4 216,2
Non-current liabilities
Operating lease straight-line liabilities 12,0 16,2
Employee benefits 383,6 348,5
Deferred taxation 290,7 269,8
686,3 634,5
Current liabilities
Current borrowings 1 665,1 647,5
Trade and other payables including derivatives 1 731,3 1 599,8
Current tax liability 10,8 4,6
3 407,2 2 251,9
Total equity and liabilities 8 034,0 7 102,6
Net debt* 1 202,6 349,0
Return on capital employed (%)** 28,3 27,6
* Comprises current borrowings less cash and cash equivalents.
** Operating profit before capital items and after taxation, as a percentage of average
capital employed.
PRELIMINARY SUMMARISED GROUP STATEMENT OF COMPREHENSIVE INCOME
Audited
year ended 30 June
2015 2014 %
Rm Rm change
Revenue 11 243,7 10 267,4 9,5
Cost of sales 6 320,3 5 839,6 8,2
Gross profit 4 923,4 4 427,8 11,2
Selling and administrative expenses 3 006,5 2 715,3 10,7
Operating profit before capital items 1 916,9 1 712,5 11,9
Income from investments 7,1 7,6 (6,6)
Finance costs (65,3) (56,0) 16,6
Share of equity-accounted earnings of joint ventures 9,5 28,5 (66,7)
Capital items (8,7) 138,0 (106,3)
Profit before taxation 1 859,5 1 830,6 1,6
Taxation 527,2 514,9 2,4
Profit for the year 1 332,3 1 315,7 1,3
Profit attributable to:
Owners of AVI 1 332,3 1 315,7 1,3
1 332,3 1 315,7 1,3
Other comprehensive income, net of tax (37,3) 17,5 (313,1)
Items that are or may be subsequently reclassified
to profit or loss
Foreign currency translation differences (26,8) 41,3
Cash flow hedging reserve (0,4) (31,3)
Taxation on items that are or may be subsequently
reclassified to profit or loss 0,1 8,8
Items that will never be reclassified to profit
or loss
Actuarial loss recognised (14,2) (1,8)
Taxation on items that will never be reclassified
to profit or loss 4,0 0,5
Total comprehensive income for the year 1 295,0 1 333,2 (2,9)
Total comprehensive income attributable to:
Owners of AVI 1 295,0 1 333,2 (2,9)
1 295,0 1 333,2 (2,9)
Depreciation and amortisation of property, plant and
equipment, fishing rights and trademarks included in
operating profit 311,0 286,1 8,7
Earnings per share
Basic earnings per share (cents)# 417,7 419,3 (0,4)
Diluted earnings per share (cents)## 410,9 409,3 0,4
Headline earnings per share (cents)# 419,7 383,6 9,4
Diluted headline earnings per share (cents)## 412,9 374,5 10,3
# Basic earnings and headline earnings per share are calculated on a weighted average of 318 939 594
(30 June 2014: 313 804 047) ordinary shares in issue.
## Diluted earnings and headline earnings per share are calculated on a weighted average of 324 200 493
(30 June 2014: 321 421 910) ordinary shares in issue.
PRELIMINARY SUMMARISED GROUP STATEMENT OF CASH FLOWS
Audited
year ended 30 June
2015 2014 %
Rm Rm change
Operating activities
Cash generated by operations before working capital changes 2 395,3 2 102,8 13,9
Increase in working capital (301,7) (101,1) 198,4
Cash generated by operations 2 093,6 2 001,7 4,6
Interest paid (65,3) (56,0) 16,6
Taxation paid (487,5) (465,1) 4,8
Net cash available from operating activities 1 540,8 1 480,6 4,1
Investing activities
Interest received 7,1 7,6 (6,6)
Property, plant and equipment acquired (848,9) (531,9) 59,6
Additions to intangible assets (3,3) (4,0) (17,5)
Proceeds from disposals of property, plant and equipment 10,3 13,8 (25,4)
Payment from Coty on revision of commercial relationship - 150,0 (100,0)
Movement in joint ventures and other investments 28,2 27,1 4,1
Net cash used in investing activities (806,6) (337,4) 139,1
Financing activities
Proceeds from shareholder funding 44,8 93,9 (52,3)
Short-term funding raised/(repaid) 1 017,7 (246,1) (513,5)
Special dividend paid (638,8) -
Ordinary dividends paid (995,9) (910,2) 9,4
Net cash used in financing activities (572,2) (1 062,4) (46,1)
Increase in cash and cash equivalents 162,0 80,8 100,5
Cash and cash equivalents at beginning of year 298,5 212,4 40,5
460,5 293,2 57,1
Translation of cash equivalents of foreign subsidiaries 2,0 5,3 (62,3)
Cash and cash equivalents at end of year 462,5 298,5 54,9
PRELIMINARY SUMMARISED GROUP STATEMENTS OF CHANGES IN EQUITY
Share Non-
capital and Treasury cont-
premium shares Reserves Retained rolling Total
Rm Rm Rm earnings Total interests equity
Year ended 30 June 2015 Rm Rm Rm Rm
Balance at 1 July 2014 29,5 (448,1) 347,5 4 287,3 4 216,2 - 4 216,2
Profit for the year 1 332,3 1 332,3 - 1 332,3
Other comprehensive income
Foreign currency translation differences (26,8) (26,8) (26,8)
Actuarial losses recognised, net of tax (10,2) (10,2) (10,2)
Cash flow hedging reserve, net of tax (0,3) (0,3) (0,3)
Total other comprehensive income - - (37,3) - (37,3) - (37,3)
Total comprehensive income for the year - - (37,3) 1 332,3 1 295,0 - 1 295,0
Transactions with owners, recorded
directly in equity
Share-based payments 12,3 12,3 12,3
Group share scheme recharge 8,0 8,0 8,0
Dividends paid (1 634,7) (1 634,7) (1 634,7)
Issue of ordinary shares to AVI Share Trusts 49,7 (49,7) - -
Own ordinary shares sold by AVI Share Trusts 44,1 (0,4) 43,7 43,7
Total contributions by and distributions
to owners 49,7 (5,6) 20,3 (1 635,1) (1 570,7) - (1 570,7)
Balance at 30 June 2015 79,2 (453,7) 330,5 3 984,5 3 940,5 - 3 940,5
Year ended 30 June 2014
Balance at 1 July 2013 29,5 (538,2) 309,0 3 877,3 3 677,6 - 3 677,6
Profit for the year 1 315,7 1 315,7 - 1 315,7
Other comprehensive income
Foreign currency translation differences 41,3 41,3 41,3
Actuarial gains recognised, net of tax (1,3) (1,3) (1,3)
Cash flow hedging reserve, net of tax (22,5) (22,5) (22,5)
Total other comprehensive income - - 17,5 - 17,5 - 17,5
Total comprehensive income for the year - - 17,5 1 315,7 1 333,2 - 1 333,2
Transactions with owners, recorded
directly in equity
Share-based payments 13,0 13,0 13,0
Group share scheme recharge 8,0 8,0 8,0
Dividends paid (910,2) (910,2) (910,2)
Own ordinary shares sold by AVI
Share Trusts 90,1 4,5 94,6 94,6
Total contributions by and distributions
to owners - 90,1 21,0 (905,7) (794,6) - (794,6)
Balance at 30 June 2014 29,5 (448,1) 347,5 4 287,3 4 216,2 - 4 216,2
SUPPLEMENTARY NOTES TO THE PRELIMINARY SUMMARISED GROUP FINANCIAL STATEMENTS
For the year ended 30 June 2015
AVI Limited (“AVI” or “the Company”) is a South African registered company. The preliminary summarised Group financial
statements of the Company comprise the Company and its subsidiaries (together referred to as “the Group”) and the
Group’s interest in joint ventures.
1. Statement of compliance
The preliminary summarised Group financial statements have been prepared in accordance with the requirements of
the JSE Limited Listings Requirements for preliminary reports, and the requirements of the Companies Act of South
Africa applicable to summary financial statements. The Listings Requirements require preliminary reports to be
prepared in accordance with the framework concepts and the measurement and recognition requirements of
International Financial Reporting Standards (“IFRS”) and the SAICA Financial Reporting Guides as issued by the
Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council
and to also, as a minimum, contain the information required by IAS 34 - Interim Financial Reporting.
2. Basis of preparation
The preliminary summarised financial statements are prepared in millions of South African Rands (“Rm”) on the
historical cost basis, except for derivative financial instruments, biological assets and liabilities for
cash-settled share-based payment arrangements, which are measured at fair value, and non-current assets and
disposal groups held-for-sale, which are stated at the lower of carrying amount and fair value less costs
to sell.
The accounting policies used in the preparation of these results are consistent with those presented in the
financial statements for the year ended 30 June 2015 and have been applied consistently to the years presented
in these preliminary summarised Group financial statements by all Group entities.
The Group has adopted the following new accounting standards, including any consequential amendments to other
standards, with a date of initial application of 1 July 2014, in the preparation of these results:
- Amendments to IAS 32 - Financial Instruments: Presentation - Offsetting Financial Assets and Financial
Liabilities
- Annual improvements to IFRSs: 2010 - 2012 and 2011 - 2013 (various standards)
The adoption of the above accounting standards had no impact on the Group‘s results. The remaining standards,
amendments and interpretations, which became effective in the year ended 30 June 2015 were assessed for
applicability to the Group and management concluded that they were not applicable to the business of the Group
and consequently will have no impact.
3. Determination of headline earnings
Audited
year ended 30 June
2015 2014 %
Rm Rm change
Profit for the year attributable to owners of AVI 1 332,3 1 315,7 1,3
Total capital items after taxation (6,4) 111,9
Net loss on disposal of property, plant and equipment (8,5) (5,1)
Payment from Coty on revision of commercial relationship* - 150,0
Impairment of assets (0,2) (6,9)
Taxation attributable to capital items 2,3 (26,1)
Headline earnings 1 338,7 1 203,8 11,2
Headline earnings per ordinary share (cents) 419,7 383,6 9,4
Diluted headline earnings per ordinary share (cents) 412,9 374,5 10,3
Number Number %
of shares of shares change
Weighted average number of ordinary shares 318 939 594 313 804 047 1,6
Weighted average diluted number of ordinary shares 324 200 493 321 421 910 0,9
*Payment from Coty on revision of commercial relationship
Effective 31 October 2013, AVI Limited and Coty Inc. agreed to a revision of their commercial relationship whereby
AVI ceased to be the exclusive licensee of Coty in South Africa and was appointed as the exclusive manufacturer,
importer, distributor and marketer of Coty’s value branded portfolio in South Africa and 13 other African countries.
As compensation for the revision Coty made a once-off pre-tax payment to Indigo of R150,0 million in November 2013.
Following the revision, Indigo no longer reports revenue and profit associated with the sale of Coty branded product
but instead recognises revenue and profit in relation to the services provided to Coty by Indigo. The impact on the
individual lines disclosed in AVI’s consolidated statement of comprehensive income for the periods ended 30 June 2015
and 30 June 2014 is not significant and is not expected to be significant going forward.
The impact on Group prior year results is as follows:
Rm
Payment from Coty on revision of commercial relationship 150.0
Less: Capital gains taxation (28.0)
Net capital profit 122.0
4. Segmental results
Audited
year ended 30 June
2015 2014 %
Rm Rm change
Segmental revenue
Food & Beverage brands 8 407,0 7 598,4 10,6
Entyce Beverages 3 041,2 2 717,4 11,9
Snackworks 3 405,3 3 057,9 11,4
I&J 1 960,5 1 823,1 7,5
Fashion brands 2 829,2 2 659,3 6,4
Personal Care* 1 033,0 1 043,8 (1,0)
Footwear & Apparel 1 796,2 1 615,5 11,2
Corporate and consolidation 7,5 9,7
Group 11 243,7 10 267,4 9,5
Segmental operating profit before capital items
Food & Beverage brands 1 327,0 1 161,5 14,2
Entyce Beverages 545,2 442,4 23,2
Snackworks 533,4 474,5 12,4
I&J 248,4 244,6 1,6
Fashion brands 602,2 560,1 7,5
Personal Care 198,0 172,0 15,1
Footwear & Apparel 404,2 388,1 4,1
Corporate and consolidation (12,3) (9,1)
Group 1 916,9 1 712,5 11,9
* Decrease due to revision of commercial relationship with Coty effective 31 October 2013 -
see note 3.
5. Commitments
Audited
year ended 30 June
2015 2014
Rm Rm
Capital expenditure commitments for property, plant and equipment 640,0 562,1
Contracted for 377,6 436,9
Authorised but not contracted for 262,4 125,2
It is anticipated that this expenditure will be financed by cash resources, cash generated from activities
and existing borrowing facilities. Other contractual commitments have been entered into in the normal course
of business.
6. Fair value classification and measurement
The Group measures derivative foreign exchange contracts, fuel oil swaps and biological assets at fair value.
The fair value of foreign exchange contracts and fuel oil swaps is determined based on inputs as described in
Level 2 of the fair value hierarchy being quotes from financial institutions. Similar contracts are traded in
an active market and the quotes reflect the actual transactions on similar instruments. The carrying values of
all other financial assets or liabilities approximate their fair values based on the nature or maturity period
of the financial instrument.
Biological assets comprise abalone which is farmed by I&J. These assets are disclosed as Level 3 financial
instruments with their fair value determined using a combination of the market comparison and cost technique
as prescribed by IAS 41.
There were no transfers between Levels 1, 2 or 3 of the fair value hierarchy during the year ended
30 June 2015.
7. Post-balance sheet events
No events that meet the requirements of IAS 10 have occurred since the balance sheet date.
8. Dividend declaration and dividends
Dividend declaration
Notice is hereby given that a gross final dividend No 84 of 200 cents per share for the year ended 30 June 2015
has been declared payable to shareholders of ordinary shares. The dividend has been declared out of income reserves
and will be subject to Dividend Withholding Tax at a rate of 15%.
Consequently a net final dividend of 170 cents per share will be distributed to those shareholders who are not exempt
from paying dividend tax.
In terms of dividend tax legislation, the dividend tax amount due will be withheld and paid over to the South African
Revenue Services by a nominee company, stockbroker or Central Securities Depository Participant (“CSDP”) (collectively
“regulated intermediary”) on behalf of shareholders. However, all shareholders should declare their status to their
regulated intermediary, as they may qualify for a reduced dividend tax rate or exemption. AVI’s issued share capital
at the declaration date is 346 700 741 ordinary shares. AVI’s tax reference number is 9500/046/71/0. The salient dates
relating to the payment of the dividend are as follows:
Last day to trade cum dividend on the JSE Friday, 9 October 2015
First trading day ex dividend on the JSE Monday, 12 October 2015
Record date Friday, 16 October 2015
Payment date Monday, 19 October 2015
In accordance with the requirements of Strate Limited, no share certificates may be dematerialised or rematerialised
between Monday, 12 October 2015, and Friday, 16 October 2015, both days inclusive.
Dividends in respect of certificated shareholders will be transferred electronically to shareholders’ bank accounts
on payment date. In the absence of specific mandates, dividend cheques will be posted to shareholders. Shareholders
who hold dematerialised shares will have their accounts at their CSDP or broker credited on Monday, 19 October 2015.
Year ended 30 June
2015 2014 %
Rm Rm change
Dividends paid and declared
Interim dividend (cents) 132 120 10,0
Final dividend (cents) 200 180 11,1
Total normal dividend (cents) 332 300 10,7
Special dividend (cents) 200 -
Total dividend (cents) 532 300 77,3
Dividend cover ratio*
Interim dividend cover ratio 1,88 1,87
Total dividend cover ratio 1,25 1,25
Dividend yield**
Closing share price (cents) 8 155 6 125
Normal dividend yield (%) 4,1 4,9
Total dividend yield (%) 6,5 4,9
* Diluted headline earnings per share divided by the ordinary dividends declared to shareholders of the Company in
respect of the results for the period.
** Dividends declared to shareholders of the Company in respect of the results for the period divided by the closing
share price at 30 June.
9. Reports of the independent auditors
The unmodified audit reports of KPMG Inc., the independent auditors, on the annual financial statements and the
preliminary summarised financial statements contained herein for the year ended 30 June 2015, dated 4 September 2015,
are available for inspection at the registered office of the Company. The auditors’ report does not necessarily
report on all of the information contained in this announcement. Shareholders are therefore advised that in order
to obtain a full understanding of the nature of the auditors’ engagement, they should obtain a copy of the auditors’
report together with the accompanying financial information from the issuer’s registered office.
10. Preparer of financial statements
These summarised financial statements have been prepared under the supervision of Owen Cressey CA(SA), the AVI Group
Chief Financial Officer.
11. Annual report
The annual report for the year ended 30 June 2015 will be posted to shareholders on or about Tuesday, 6 October 2015.
The financial statements will include the notice of the annual general meeting of shareholders to be convened on
Thursday, 5 November 2015.
ADMINISTRATION AND PRINCIPLE SUBSIDIARIES
Company registration
AVI Limited (“AVI”)
Reg no: 1944/017201/06
Share code: AVI
ISIN: ZAE000049433
Company Secretary
Sureya Naidoo
Business address and registered office
2 Harries Road
Illovo
Johannesburg 2196
South Africa
Postal address
PO Box 1897
Saxonwold 2132
South Africa
Telephone: +27 (0)11 502 1300
Telefax: +27 (0)11 502 1301
E-mail: info@avi.co.za
Website: www.avi.co.za
Auditors
KPMG Inc.
Sponsor
The Standard Bank of South Africa Limited
Commercial bankers
Standard Bank
FirstRand Bank
Transfer secretaries
Computershare Investor Services Proprietary Limited
Business address
70 Marshall Street
Marshalltown
Johannesburg 2001
South Africa
Postal address
PO Box 61051
Marshalltown 2107
South Africa
Telephone: +27 (0)11 370 5000
Telefax: +27 (0)11 370 5271
Principal subsidiaries
Food & Beverage Brands
National Brands Limited
Reg no: 1948/029389/06
(incorporating Entyce Beverages and Snackworks)
30 Sloane Street
Bryanston 2021
PO Box 5159
Rivonia 2128
Managing directors
Sarah-Anne Orphanides
(Entyce Beverages)
Telephone: +27 (0)11 707 7100
Telefax: +27 (0)11 707 7799
Gaynor Poretti (Snackworks)
Telephone: +27 (0)11 707 7200
Telefax: +27 (0)11 707 7799
I&J
Irvin & Johnson Holding Company Proprietary Limited
Reg no: 2004/013127/07
1 Davidson Street
Woodstock
Cape Town 7925
PO Box 1628
Cape Town 8000
Managing director
Jonty Jankovich
Telephone: +27 (0)21 440 7800
Telefax: +27 (0)21 440 7270
Fashion Brands
Personal Care
Indigo Brands Proprietary Limited
Reg no: 2003/009934/07
16 - 20 Evans Avenue
Epping 1 7460
PO Box 3460
Cape Town 8000
Managing director
Robert Lunt
Telephone: +27 (0)21 507 8500
Telefax: +27 (0)21 507 8501
Footwear & Apparel
A&D Spitz Proprietary Limited
Reg no: 1999/025520/07
29 Eaton Avenue
Bryanston 2021
PO Box 782916
Sandton 2145
Acting managing director
Simon Crutchley
Telephone: +27 (0)11 707 7300
Telefax: +27 (0)11 707 7763
Green Cross Manufacturers Proprietary Limited
Reg no: 1994/08549/07
26 - 30 Benbow Avenue
Epping Industria
7460
PO Box 396
Epping Industria 7475
Managing director
Greg Smith
Telephone: +27 (0)21 507 9700
Telefax: +27 (0)21 507 9707
Directors
Executive
Simon Crutchley
(Chief Executive Officer)
Owen Cressey
(Chief Financial Officer)
Michael Koursaris
(Business Development Director)
Independent non-executive
Gavin Tipper (1)
(Chairman)
James Hersov (2)
Adriaan Nühn (1, 4)
Mike Bosman (2)
Andisiwe Kawa (1)
Abe Thebyane (1)
Neo Dongwana (2, 3)
Barry Smith (3) (Resigned 30 October 2014)
Richard Inskip (3)
1 Member of the Remuneration, Nomination and Appointments Committee
2 Member of the Audit and Risk Committee
3 Member of the Social and Ethics Committee
4 Dutch
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