AVI LIMITED - Voluntary trading update and statement for the six months ended 31 December 2016

Voluntary trading update and statement for the six months ended 31 December 2016

AVI Limited
(Incorporated in the Republic of South Africa)
(Registration number 1944/017201/06)
Share code: AVI
ISIN: ZAE000049433
(“AVI” or “the Group”)


    VOLUNTARY TRADING UPDATE AND STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2016


Our trading environment continues to be constrained. Notwithstanding this, Group revenue for the first
semester of the financial year was 11,6% higher than for the same period in the prior financial year. This
growth reflects a combination of price increases in response to a weaker Rand and higher raw material costs,
and contextually pleasing volume growth in most of our grocery categories.

In the grocery portfolio selling prices have yet to fully recover rising input costs; notwithstanding the margin
pressure resulting from this, Entyce and Snackworks both performed soundly with good growth in operating
profit for the semester.

The overall performance by AVI’s Fashion Brands for the semester was sound in the context of the difficult
trading environment. Demand during December for our core brands was good, with Spitz in particular
achieving solid revenue growth compared to December last year. Both Spitz and Green Cross achieved
operating profit growth for the semester despite pressure on footwear sales volumes at the materially higher
price points necessary to protect gross profit margin. Indigo Brands delivered a pleasing result for the
semester with gains in market shares in key categories.

I&J achieved profit growth for the semester from favourable exchange rates and improved fishing in the
second quarter, although the result was tempered by a three week long illegal strike at the fishing operations
in August which resulted in a shortfall of approximately R25 million of operating profit, and impacted
negatively on the Group’s trading result for the first half.

The weighted average number of shares in issue during the period was 0,8% 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 2016 are expected
        to increase by between 7% and 9% over the comparable period in the prior year, translating into an
        increase from last year’s 281,6 cents to a range between 301 and 307 cents per share; and

    -   Consolidated earnings per share for the six months ended 31 December 2016, including capital gains
        and losses, are expected to increase by between 8% and 10% over the comparable period in the prior
        year, translating into an increase from last year’s 279,9 cents to a range between 302 and 308 cents
        per share.

It is expected that AVI will release its results for the six months ended 31 December 2016 on or about
6 March 2017.

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

Illovo
24 January 2017

Sponsor                 The Standard Bank of South Africa Limited

Enquiries               +(27) 11 502 1300

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