AVI LIMITED - Chairman's comment on trading conditions

Chairman's comment on trading conditions

AVI LIMITED
Registration number 1944/017201/06
Share Code: AVI
ISIN: ZAE000049433
("AVI" or “the Company”)

CHAIRMAN’S COMMENT ON TRADING CONDITIONS

At the annual general meeting of AVI held this morning, Gavin
Tipper commented in relation to trading conditions that:

“Group revenue for the first quarter ended September 2016 was
10,8% higher than that for the same period in the prior year.
The general trading environment continues to be constrained
with consumers still absorbing higher price points in many
categories.

Entyce and Snackworks have both had an encouraging start to the
financial year with sound sales volumes and improved operating
profit.

I&J’s first quarter was disrupted by an illegal strike at the
fishing operations in August, and catch rates were lower,
resulting in lower sales volumes. Improved fishing performance
in October, if sustained, together with favourable foreign
exchange rates which have been secured, should bring the
performance for the first half into line with last year.

Overall performance by AVI’s Fashion Brands for the quarter was
sound in the context of the difficult trading environment.
Indigo grew revenue by 10,8% and gross profit margins were
higher than last year, however these gains were largely offset
by continued pressure on footwear sales volumes following price
increases over the last year in response to the weaker Rand.

As ever, results for the first half of the 2017 financial year
are materially dependent on sound consumer demand through the
festive season."

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

Illovo
3 November 2016

Sponsor
The Standard Bank of South Africa Limited

Date: 03/11/2016 12:40:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.