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AVI LIMITED - Results for the year ended 30 June 2016

Release Date: 12/09/2016 07:05
Code(s): AVI     PDF:  
Wrap Text
Results for the year ended 30 June 2016

AVI Limited
(“AVI” or “the Group” or “the Company”)
ISIN: ZAE000049433 
Share code: AVI 
Registration number: 1944/017201/06
For more information, please visit our website: www.avi.co.za

Results for the year ended 30 June 2016

Key features

Sound performance in a challenging environment;
Revenue up 8,4% to R12,19 billion;
Operating profit up 12,4% to R2,15 billion;
Gross margin maintained despite material cost pressures;
Cash from operations up 15,3% to R2,76 billion;
Capital expenditure of R881,8 million on efficiency, capacity and retail stores;
Return on capital employed of 27,9%;
Headline earnings per share up 10,6% to 464,1 cents;
Final dividend of 220 cents per share, total normal dividend up 11,5% to 370 cents per share.    


Group overview
AVI’s results for the 12 months ended 30 June 2016 reflect the quality of our brands, with generally sound
demand in a period of increasing pressure on consumer spending and higher input costs. The weaker Rand had a
significant impact on costs, particularly in the second half of the financial year. Proactive and tactile
selling price management, supported by our consistent foreign currency and commodity hedging policies, helped 
to maintain profit margins.

Revenue increased 8,4%, from R11,24 billion to R12,19 billion, with the Group realising higher selling
prices in all categories to offset cost pressure from the weakening of the Rand and an increase in wage costs 
of R45,9 million, in line with the new wage equalisation legislation effective from April 2015. Sales volumes 
were resilient with notable growth achieved in Creamer, Body Sprays and I&J. Gross profit rose by 8,6% to 
R5,35 billion with the consolidated gross profit margin improving from 43,8% to 43,9%. Operating profit 
increased by 12,4%, from R1,92 billion to R2,15 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 17,0% to 17,7%.

Entyce’s performance was underpinned by strong volume growth in Creamer and effective management of selling
prices across Tea, Coffee and Creamer. Snackworks performed effectively in a challenging environment
maintaining gross profit margin and sales volumes. I&J benefited materially from the weaker Rand and lower 
fuel costs, notwithstanding a difficult fishing environment in the second semester of the financial year. 
Indigo’s brands performed well in a competitive environment resulting in good profit growth for the year. 
In the footwear and apparel brands demand cooled as cash constrained consumers reacted to higher selling 
prices necessary to preserve long-term margin targets following the impact of the weaker Rand on the cost 
of goods sold. This, the significant refurbishment of stores and a disappointing Green Cross performance, 
impacted negatively on profitability. The International business, comprising mainly of exports into Africa, 
achieved sound growth notwithstanding challenging currency movements in several important markets, and 
contributed 9,0% of Group operating profit for the year. 

Headline earnings rose 11,5%, from R1,34 billion to R1,49 billion with the growth in operating profit and 
an improved result from I&J’s Australian joint venture tempered by higher finance costs in line with the
targeted increase in gearing. Headline earnings per share increased 10,6% from 419,7 cents to 464,1 cents 
with a 0,8% 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.

Cash generated by operations, before working capital changes, increased 15,3% to R2,76 billion. Working
capital rose R469,3 million, reflecting good trading at the end of the year, higher stock values from rising 
input costs and planned increases in stock levels ahead of scheduled disruptions arising from capital 
projects. Capital expenditure of R881,8 million included R259,9 million for I&J’s new vessels, 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 R1,13 billion and taxation of R508,6 million. 
Net debt at the end of June 2016 was R1,43 billion compared to R1,20 billion at the end of June 2015.

Dividend
A final dividend of 220 cents per share has been declared, bringing the total dividend for the year to   
370 cents, an increase of 11,5% on last year’s normal dividend.

Segmental review
Year ended 30 June
                                   Segmental revenue                  Segmental operating profit
                              2016          2015           %          2016         2015           %    
                                Rm            Rm      change            Rm           Rm      change    
                                                                                                       
Food & Beverage brands     9 236,9       8 407,0         9,9       1 601,8      1 327,0        20,7    
Entyce Beverages           3 421,9       3 041,2        12,5         661,7        545,2        21,4    
Snackworks                 3 643,2       3 405,3         7,0         609,1        533,4        14,2    
I&J                        2 171,8       1 960,5        10,8         331,0        248,4        33,3    
Fashion brands             2 950,7       2 829,2         4,3         563,0        602,2        (6,5)   
Personal Care              1 096,4       1 033,0         6,1         218,0        198,0        10,1    
Footwear & Apparel         1 854,3       1 796,2         3,2         345,0        404,2       (14,6)   
Corporate                      1,3           7,5                     (10,2)       (12,3)               
Group                     12 188,9      11 243,7         8,4       2 154,6      1 916,9        12,4    


Entyce Beverages 
Revenue increased 12,5% to R3,42 billion while operating profit increased 21,4% to R661,7 million with the
operating profit margin at 19,3% compared to 17,9% in the prior year.

Tea revenue increased 14,4% due to price increases necessary to offset significantly higher rooibos tea
input costs and the impact of the weaker Rand on other raw material costs. This resulted in some buying down 
from premium to affordable brands, and an overall reduction in sales volumes of 1,6% for the year. Coffee 
revenue was up 9,2% with price increases to ameliorate the impact of the weaker Rand on raw coffee bean prices 
and a small increase in sales volumes. Creamer revenue rose by 16,5%, benefiting from price increases, 
disciplined price management and a 9,1% growth in sales volumes facilitated by new capacity commissioned in 
September 2015.

The gross profit margin improved with higher selling prices and currency and commodity hedges offsetting
input cost pressure, and the Creamer category achieving good volume leverage. Selling and administrative 
cost increases were well contained, and Tea, Coffee and Creamer all had improved operating profit margins 
for the year.

Snackworks
Revenue of R3,64 billion was 7,0% higher than last year while operating profit rose 14,2%, from 
R533,4 million to R609,1 million. The operating profit margin increased from 15,7% to 16,7%.

Biscuits revenue grew 7,1% with higher selling prices and the same overall sales volume as the prior year.
Snacks revenue increased 6,7% with higher selling prices supported by a slight increase in sales volumes.

Gross profit margin was slightly higher, with selling price increases sufficient to recover higher raw
material costs in the year. The adverse impact of the weaker Rand on imports was tempered by lower US 
Dollar prices of several key raw materials and labour equalisation costs of R29,5 million were ameliorated 
by procurement savings. Selling and administrative cost increases were well contained, contributing to the 
growth in operating profit.

I&J
Revenue increased by 10,8% from R1,96 billion to R2,17 billion while operating profit increased from 
R248,4 million to R331,0 million. The operating profit margin increased from 12,7% to 15,2%.

Revenue growth largely reflects the benefit of the weaker Rand on export sales, selling price increases 
and higher sales volumes, which benefited from the additional catching capacity of the two new vessels
commissioned in the first semester.

Lower fuel costs and a sound processing performance added to the benefit of the weaker Rand, resulting 
in a material increase in operating profit. 

Fishing catch rates were on average lower than last year. The freezer vessels in particular were impacted 
by an increased proportion of small fish in the catch which materially reduced the yield from whole fish 
to saleable product.

Personal Care
In the Personal Care category, Indigo’s revenue from owned brands grew by 11,4% with price increases and
volume growth, although total revenue growth was limited to 6,1% due to lower volumes of product 
manufactured for Coty. The gross profit margin was protected by selling price increases and currency hedges, 
and also benefited from the lower volume of product manufactured for Coty, which achieves a relatively low 
margin. Selling and administrative expenses were well controlled and operating profit grew 10,1% from 
R198,0 million to R218,0 million. The operating profit margin increased from 19,2% to 19,9%.

Footwear and Apparel
The Footwear and Apparel category increased revenue by 3,2% to R1,85 billion while operating profit
decreased by 14,6% from R404,2 million to R345,0 million. The operating profit margin decreased from 22,5% 
to 18,6%.

The Spitz and Kurt Geiger brands grew revenue by 4,1% as a result of higher selling prices and clothing
sales volumes, offset by lower footwear volumes. Core footwear brands performed well considering the 
constrained consumer environment, but volumes were adversely impacted by price increases in the second 
half of the year to address rising, Rand driven, input costs. Gross profit margin decreased with higher 
costs not fully recovered in the year. Selling and administrative costs increased ahead of inflation due 
mainly to higher store operating costs with nine stores opened over the 12 months to June 2016. Operating 
profit decreased from R355,7 million to R320,2 million and the operating profit margin declined from 
25,2% to 21,8%.

In Green Cross revenue growth was inhibited by poor wholesale demand, growing just 1,1% to R339,7 million.
In the retail business, eight new stores were opened and six stores were refurbished during the year,
materially improving the footprint that will drive medium-term revenue growth and operating leverage. The 
wholesale business declined further, reflecting ongoing pressure from competitors in this channel as well 
as a general increase in footwear retail space. Gross profit margin was maintained despite diminishing 
protection from currency hedges through the year. The combination of lower sales volumes and continued 
investment in the long-term capability of the business resulted in a decrease in operating profit from 
R45,0 million to R27,3 million. 

Outlook
The consumer demand environment remains constrained with the weaker Rand, higher staple food prices and
higher interest rates all reducing disposable income. Most category growth rates have slowed and in some 
cases volumes are declining. It is exceptionally difficult to anticipate consumer demand with high 
confidence and we will continue to focus on reacting quickly to changes as we pursue the most appropriate
balance of price, sales volumes and profit margins for each of our brands.

The year’s results enjoyed significant protection from rising spot prices for key commodities and Rand
weakness because of the hedge positions maintained in terms of our hedging policies. Proactive and tactile 
selling price management has anticipated the pressure on gross profit margin from rising input costs and 
most of our categories are well positioned to protect gross profit margin in the first half of the next 
financial year, with selling prices aligned to hedge positions.

Entyce, Snackworks and Indigo have well established capabilities to defend market share and profit margins
in tough times, and will grow market share where there is opportunity. Spitz, Kurt Geiger and Green Cross
retail stores should benefit from refurbishments and space growth to help offset the pressure on demand 
from recent selling price increases. Our International business is well positioned to maintain volumes 
and profitability in core geographies while continuing to expand our brands presence in new markets, 
supported by our South African manufacturing capability.

I&J will benefit from the impact of the weaker Rand on export revenues as it has secured more than half 
of its export currency for the next financial year at rates better than those realised in the 2016 
financial year. As always, catch rates have a material impact on volumes and efficiency, and need to 
remain at acceptable levels for I&J to sustain its current level of profitability. 

The focus on capital projects remains strong, with investment to improve efficiency and increase capacity
planned in all of our businesses. The Group procurement initiative has met its initial savings target and 
will continue to be a focus area, with the savings achieved to date helping to sustain profit margins 
without unnecessary price increases.

The Board remains confident that AVI is well positioned to compete in this difficult trading environment. 
We will continue to pursue growth opportunities from the current brand portfolio, prudently manage fixed 
and variable costs and recognising the challenging environment, be alert for appropriate 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
12 September 2016



Preliminary summarised consolidated balance sheet
                                                                                               
                                                                         Audited at
                                                                           30 June
                                                                   2016                2015    
                                                                     Rm                  Rm    
Assets                                                                                         
Non-current assets                                                                             
Property, plant and equipment                                   3 352,4             2 839,0    
Intangible assets and goodwill                                  1 145,4             1 146,6    
Investments                                                       414,5               357,4    
Deferred taxation                                                  24,6                30,8    
                                                                4 936,9             4 373,8    
Current assets                                                                                 
Inventories and biological assets                               1 889,6             1 572,5    
Trade and other receivables including derivatives               1 895,5             1 625,2    
Cash and cash equivalents                                         309,1               462,5    
                                                                4 094,2             3 660,2    
Total assets                                                    9 031,1             8 034,0    
Equity and liabilities                                                                         
Capital and reserves                                                                           
Total equity                                                    4 489,5             3 940,5    
Non-current liabilities                                                                        
Operating lease straight-line liabilities                          10,6                12,0    
Employee benefit liabilities                                      342,9               383,6    
Deferred taxation                                                 354,9               290,7    
                                                                  708,4               686,3    
Current liabilities                                                                            
Current borrowings                                              1 737,7             1 665,1    
Trade and other payables including derivatives                  2 081,7             1 731,3    
Current tax liabilities                                            13,8                10,8    
                                                                3 833,2             3 407,2    
Total equity and liabilities                                    9 031,1             8 034,0    
                                                                                               
Net debt*                                                       1 428,6             1 202,6    
Return on capital employed (%)**                                   27,9                28,3    
*  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 consolidated statement of comprehensive income
                                                                            Audited
                                                                        year ended 30 June
                                                                   2016                2015             %    
                                                                     Rm                  Rm        change    
                                                                                                            
Revenue                                                        12 188,9            11 243,7          8,4    
Cost of sales                                                   6 842,3             6 320,3          8,3    
Gross profit                                                    5 346,6             4 923,4          8,6    
Selling and administrative expenses                             3 192,0             3 006,5          6,2    
Operating profit before capital items                           2 154,6             1 916,9         12,4    
Interest received                                                   6,5                 7,1         (8,5)   
Finance costs                                                    (135,9)              (65,3)       108,1    
Share of equity-accounted earnings of joint ventures               58,1                 9,5        511,6    
Capital items                                                     (14,3)               (8,7)        64,4    
Profit before taxation                                          2 069,0             1 859,5         11,3    
Taxation                                                          587,8               527,2         11,5    
Profit for the year                                             1 481,2             1 332,3         11,2    
Profit attributable to:                                                                                     
Owners of AVI                                                   1 481,2             1 332,3         11,2    
                                                                1 481,2             1 332,3         11,2    
Other comprehensive income, net of tax                            114,3               (37,3)      (406,4)   
Items that are or may be subsequently                                             
reclassified to profit or loss                                                    
Foreign currency translation differences                           75,1               (26,8)                 
Cash flow hedging reserve                                          15,8                (0,4)                 
Taxation on items that are or may be                                              
subsequently reclassified to profit or loss                        (4,4)                0,1                 
Items that will never be reclassified to                                          
profit or loss                                                                    
Actuarial gain/(loss) recognised                                   38,6               (14,2)                 
Taxation on items that will never be                                              
reclassified to profit or loss                                    (10,8)                4,0                 
Total comprehensive income for the year                         1 595,5             1 295,0         23,2    
Total comprehensive income attributable to:                                                                 
Owners of AVI                                                   1 595,5             1 295,0         23,2    
                                                                1 595,5             1 295,0         23,2    
Depreciation and amortisation of property,                                        
plant and equipment, fishing rights and                                           
trademarks included in operating profit                           350,2               311,0         12,6    
Earnings per share                                                                                          
Basic earnings per share (cents)#                                 460,7               417,7         10,3    
Diluted earnings per share (cents)##                              455,4               410,9         10,8    
Headline earnings per share (cents)#                              464,1               419,7         10,6    
Diluted headline earnings per share (cents)##                     458,8               412,9         11,1    
#   Basic earnings and headline earnings per share are calculated on a weighted average of 321 536 201 
    (30 June 2015: 318 939 594) ordinary shares in issue.
##  Diluted earnings and headline earnings per share are calculated on a weighted average of 325 220 785 
    (30 June 2015: 324 200 493) ordinary shares in issue.


Preliminary summarised consolidated statement of cash flows
                                                                           Audited
                                                                       year ended 30 June
                                                                   2016                2015            %    
                                                                     Rm                  Rm       change    
                                                                                                            
Operating activities                                                                                        
Cash generated by operations before                            
working capital changes                                         2 761,8             2 395,3         15,3    
Increase in working capital                                      (469,3)             (301,7)        55,6    
Cash generated by operations                                    2 292,5             2 093,6          9,5    
Interest paid                                                    (135,9)              (65,3)       108,1    
Taxation paid                                                    (508,6)             (487,5)         4,3    
Net cash available from operating                              
activities                                                      1 648,0             1 540,8          7,0    
Investing activities                                                                                        
Interest received                                                   6,5                 7,1         (8,5)   
Property, plant and equipment acquired                           (881,8)             (848,9)         3,9    
Additions to intangible assets                                     (2,4)               (3,3)       (27,3)   
Proceeds from disposals of property,                           
plant and equipment                                                10,2                10,3         (1,0)   
Movement in joint ventures                                         53,3                28,2         89,0    
Net cash used in investing activities                            (814,2)             (806,6)         0,9    
Financing activities                                                                                        
Proceeds from shareholder funding                                  56,3                44,8         25,7    
Short-term funding raised                                          72,6             1 017,7        (92,9)   
Special dividend paid                                                 -              (638,8)      (100,0)   
Ordinary dividends paid                                        (1 126,9)             (995,9)        13,2    
Net cash used in financing activities                            (998,0)             (572,2)        74,4    
(Decrease)/increase in cash and cash                           
equivalents                                                      (164,2)              162,0       (201,4)   
Cash and cash equivalents at beginning                         
of year                                                           462,5               298,5         54,9    
                                                                  298,3               460,5        (35,2)   
Translation of cash equivalents of                             
foreign subsidiaries                                               10,8                 2,0        440,0    
Cash and cash equivalents at end of year                          309,1               462,5        (33,2)   


Preliminary summarised consolidated statements of changes in equity
                                            Share                                                          
                                          capital                                           
                                              and       Treasury                      Retained           Total    
                                          premium         shares      Reserves        earnings          equity      
                                               Rm             Rm            Rm              Rm              Rm
Year ended 30 June 2016                                                                                           
Balance at 1 July 2015                       79,2         (453,7)        330,5         3 984,5         3 940,5    
Profit for the year                                                                    1 481,2         1 481,2    
Other comprehensive income                                                                                        
Foreign currency translation 
differences                                                               75,1                            75,1    
Actuarial gains recognised, 
net of tax                                                                27,8                            27,8    
Cash flow hedging reserve, 
net of tax                                                                11,4                            11,4    
Total other comprehensive income                -              -         114,3               -           114,3    
Total comprehensive income 
for the year                                    -              -         114,3         1 481,2         1 595,5    
Transactions with owners, recorded 
directly in equity                                                             
Share-based payments                                                      15,0                            15,0    
Group share scheme recharge                                                9,1                             9,1    
Dividends paid                                                                        (1 126,9)       (1 126,9)    
Issue of ordinary shares to 
AVI Share Trusts                            35,1          (35,1)                                             -    
Own ordinary shares sold by 
AVI Share Trusts                                            52,9                           3,4            56,3    
Transfer between reserves                                                (12,2)           12,2               -    
Total contributions by and 
distributions to owners                      35,1           17,8          11,9        (1 111,3)       (1 046,5)    
Balance at 30 June 2016                     114,3         (435,9)        456,7         4 354,4         4 489,5    

Year ended 30 June 2015                                                                                           
Balance at 1 July 2014                       29,5         (448,1)        347,5         4 287,3         4 216,2    
Profit for the year                                                                    1 332,3         1 332,3    
Other comprehensive income                                                                                        
Foreign currency translation 
differences                                                              (26,8)                          (26,8)    
Actuarial losses recognised, 
net of tax                                                               (10,2)                          (10,2)    
Cash flow hedging reserve, 
net of tax                                                                (0,3)                           (0,3)    
Total other comprehensive income                -              -         (37,3)              -           (37,3)    
Total comprehensive income 
for the year                                    -              -         (37,3)        1 332,3         1 295,0    
Transactions with owners, recorded 
directly in equity                                                             
Share-based payments                                                      12,3                            12,3    
Group share scheme recharge                                                8,0                             8,0    
Dividends paid                                                                        (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    
Total contributions by and 
distributions to owners                      49,7           (5,6)         20,3        (1 635,1)       (1 570,7)    
Balance at 30 June 2015                      79,2         (453,7)        330,5         3 984,5         3 940,5    


Supplementary notes to the preliminary summarised consolidated financial statements

For the year ended 30 June 2016
AVI Limited (“AVI” or the “Company”) is a South African registered company. The preliminary summarised consolidated 
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 consolidated 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 also, as a minimum, to contain the information required by IAS 34 - Interim Financial Reporting.  
   
   
2. Basis of preparation
   The preliminary summarised consolidated 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.
   
   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 consolidated financial statements by all Group entities.
   
   There are no new, revised or amended accounting standards, effective from 1 July 2015, applicable to the Group.
   
   
3. Segmental results
                                                                          Audited
                                                                    year ended 30 June
                                                                2016                  2015           %    
                                                                  Rm                    Rm      change    
   Segmental revenue                                                                                      
   Food & Beverage brands                                    9 236,9               8 407,0         9,9    
   Entyce Beverages                                          3 421,9               3 041,2        12,5    
   Snackworks                                                3 643,2               3 405,3         7,0    
   I&J                                                       2 171,8               1 960,5        10,8    
   Fashion brands                                            2 950,7               2 829,2         4,3    
   Personal Care                                             1 096,4               1 033,0         6,1    
   Footwear & Apparel                                        1 854,3               1 796,2         3,2    
   Corporate and consolidation                                   1,3                   7,5                
   Group                                                    12 188,9              11 243,7         8,4    
   Segmental operating profit before capital items                                                        
   Food & Beverage brands                                    1 601,8               1 327,0        20,7    
   Entyce Beverages                                            661,7                 545,2        21,4    
   Snackworks                                                  609,1                 533,4        14,2    
   I&J                                                         331,0                 248,4        33,3    
   Fashion brands                                              563,0                 602,2        (6,5)   
   Personal Care                                               218,0                 198,0        10,1    
   Footwear & Apparel                                          345,0                 404,2       (14,6)   
   Corporate and consolidation                                 (10,2)                (12,3)                
   Group                                                     2 154,6               1 916,9        12,4    
   
   
4. Determination of headline earnings
                                                                         Audited
                                                                    year ended 30 June
                                                               2016                   2015           %    
                                                                 Rm                     Rm      change    
   Profit for the year attributable to 
   owners of AVI                                            1 481,2                1 332,3        11,2    
   Total capital items after taxation                         (11,0)                  (6,4)               
   Net loss on disposal of property, 
   plant and equipment                                        (11,3)                  (8,5)                
   Impairments                                                 (3,0)                  (0,2)                
   Taxation attributable to capital 
   items                                                        3,3                    2,3                
   Headline earnings                                        1 492,2                1 338,7        11,5    
   Headline earnings per ordinary 
   share (cents)                                              464,1                  419,7        10,6    
   Diluted headline earnings per 
   ordinary share (cents)                                     458,8                  412,9        11,1    
                                                                                                     
  
                                                            Number                 Number            %     
                                                          of shares              of shares      change    
                                                                                                          
   Weighted average number of 
   ordinary shares                                      321 536 201            318 939 594         0,8    
   Weighted average diluted number 
   of ordinary shares                                   325 220 785            324 200 493         0,3    
   
   
5. Commitments
                                                                                       Audited
                                                                                year ended 30 June
                                                                              2016               2015    
                                                                                Rm                 Rm    
                                                                                                         
   Capital expenditure commitments for                            
   property, plant and equipment                                             327,4              640,0    
   Contracted for                                                            183,9              377,6    
   Authorised but not contracted for                                         143,5              262,4    
   
   It is anticipated that this expenditure will be financed by cash resources, cash generated from operating 
   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 swaps and biological assets at fair value. 
   
   The fair value of foreign exchange contracts and fuel 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 2016.
   
   
7. Post-balance sheet events
   No events that meet the requirements of IAS 10 have occurred since the balance sheet date.
   
   
8. Dividend declaration                                                           
   Notice is hereby given that a gross final dividend No 86 of 220 cents per share for the year ended 
   30 June 2016 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 187 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 347 557 914
   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                          Tuesday, 11 October 2016    
   First trading day ex dividend on the JSE                         Wednesday, 12 October 2016    
   Record date                                                         Friday, 14 October 2016    
   Payment date                                                        Monday, 17 October 2016    
   In accordance with the requirements of Strate Limited, no share certificates may be dematerialised or 
   rematerialised between Wednesday, 12 October 2016, and Friday, 14 October 2016, 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, 17 October 2016.                                       
   
   
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 2016, dated 
   9 September 2016, 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 2016 will be posted to shareholders on or about Tuesday, 
   4 October 2016. The financial statements will include the notice of the annual general meeting of 
   shareholders to be convened on Thursday, 3 November 2016.


Administration and principal subsidiaries
Administration 
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
Tracey Chiappini-Young 
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 Tipper1
(Chairman)

James Hersov2

Adriaan Nühn1, 4

Mike Bosman2

Andisiwe Kawa1

Abe Thebyane1

Neo Dongwana2, 3

Richard Inskip3



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


For more information, please visit our website: www.avi.co.za

Johannesburg
12 September 2016

Date: 12/09/2016 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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