Wrap Text
Results for the year ended 30 June 2017
AVI Limited
ISIN: ZAE000049433 Share code: AVI
Registration number: 1944/017201/06
("AVI" or "the Group" or "the Company")
For more information, please visit our website: www.avi.co.za
RESULTS FOR THE YEAR ENDED 30 JUNE 2017
KEY FEATURES
- Sound performance in a challenging environment
- Revenue up 8,2% to R13,18 billion
- Gross profit margin recovered in second semester
- Operating profit up 10,7% to R2,39 billion
- Cash from operations up 8,4% to R2,99 billion
- Capital expenditure of R545,6 million
- Return on capital employed of 28%
- Headline earnings per share up 9,4% to 507,7 cents
- Final dividend of 243 cents per share, total normal dividend up 9,5% to 405 cents per share
GROUP OVERVIEW
AVI's high quality brand portfolio underpinned a sound result in a challenging environment characterised
by low economic growth and constrained consumer spending.
Group revenue for the year increased by 8,2%, from R12,19 billion to R13,18 billion. Revenue growth was
substantially due to higher selling prices in response to weaker Rand exchange rates achieved and higher raw
material costs, offset by volume pressure in a constrained spending environment. The impact of Rand weakness in
the second half of the prior financial year was deferred into the current year by our consistent hedging practices,
with the result that last year's profit margins were protected while we had opportunity to negotiate compensatory
selling price increases that have carried into the current year. Gross profit margins were well protected overall,
dropping slightly from 43,9% to 43,7%, and recovered in the second semester as exchange rate driven cost pressure
eased in line with Rand strengthening during the year. Gross profit rose by 7,8% to R5,76 billion while operating
profit increased by 10,7%, from R2,15 billion to R2,39 billion underpinned by the improvement in gross profit
and the containment of selling and administrative expenses. The operating profit margin increased from 17,7%
to 18,1%.
Entyce and Snackworks both performed soundly, with good growth in operating profit notwithstanding pressure on sales
volumes in most categories, and particularly the biscuit category in the second half. Indigo Brands delivered a pleasing
result with good performance from owned brands and gains in market shares in key categories. Spitz had a much improved
second half supported by lower selling price inflation in line with the stronger Rand, resulting in credible growth for
the full year in the current environment. Green Cross was adversely impacted by extensive and sustained discounting of
competing product ranges which constrained sales volumes and selling prices, resulting in a slight decrease in operating
profit for the year. I&J achieved profit growth mainly from favourable exchange rates, although the result was tempered
by an operating profit shortfall of approximately R25 million due to a three week unprotected strike at the trawling
operations in August 2016.
Headline earnings rose 10,3%, from R1,49 billion to R1,65 billion with the growth in operating profit and an improved
result from I&J's Australian joint venture partially offset by higher finance costs in line with higher interest rates.
Headline earnings per share increased 9,4% from 464,1 cents to 507,7 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 8,4% to R2,99 billion. Working capital rose
R675,0 million, reflecting good trading in May and June and lower raw material creditors due to different timing of
deliveries compared to last year. Capital expenditure of R545,6 million, which included capacity and efficiency
projects in the manufacturing operations as well as new and refurbished stores in the retail businesses, was
materially lower than last year, which included R259,9 million for I&J's new vessels. Other material cash outflows
during the period were dividends of R1,24 billion and taxation of R546,7 million. Net debt at the end of June 2017
was R1,44 billion compared to R1,43 billion at the end of June 2016.
DIVIDEND
AVI has maintained a normal dividend payout ratio of 80% of diluted headline earnings dividends. In line with this
a final dividend of 243 cents per share has been declared, bringing the total dividend for the year to 405 cents,
an increase of 9,5% on last year.
SEGMENTAL REVIEW
Year ended 30 June
Segmental revenue Segmental operating profit
2017 2016 % 2017 2016 %
Rm Rm change Rm Rm change
Food & Beverage brands 10 076,0 9 236,9 9,1 1 790,6 1 601,8 11,8
Entyce Beverages 3 757,1 3 421,9 9,8 735,1 661,7 11,1
Snackworks 3 956,2 3 643,2 8,6 666,4 609,1 9,4
I&J 2 362,7 2 171,8 8,8 389,1 331,0 17,6
Fashion brands 3 108,6 2 950,7 5,4 607,5 563,0 7,9
Personal Care 1 194,5 1 096,4 8,9 241,5 218,0 10,8
Footwear & Apparel 1 914,1 1 854,3 3,2 366,0 345,0 6,1
Corporate - 1,3 (12,8) (10,2)
Group 13 184,6 12 188,9 8,2 2 385,3 2 154,6 10,7
Entyce Beverages
Revenue increased 9,8% to R3,76 billion while operating profit increased 11,1% to R735,1 million with the operating
profit margin at 19,6% compared to 19,3% in the prior year.
Tea, Coffee and Creamer all achieved revenue growth from price increases implemented to offset higher raw material
costs, including the impact of the weaker Rand exchange rates achieved. Sales volumes decreased due to the constrained
environment and higher price points. Gross profit margins were compressed by cost pressure and competitor activity in
the creamer and mixed instant coffee categories and were lower than last year, although some easing of pressure was
noted in the second semester in line with Rand strengthening. Selling and administrative costs were well controlled,
resulting in good growth in operating profit and an improvement in the operating profit margin.
The premium Five Roses and Freshpak tea brands performed commendably at higher price points, while the Hug In A Mug
speciality coffee range grew strongly to underpin growth in the coffee business. Profit growth in Tea and Coffee was
partially offset by a decline in Creamer profits attributable to aggressive competitor activity that limited selling
price increases and sales volumes for most of the year. Despite the decline from last year's record performance,
Creamer profit and profit margins remain healthy and second half performance was better than initially predicted.
Snackworks
Revenue of R3,96 billion was 8,6% higher than last year while operating profit rose 9,4%, from R609,1 million to
R666,4 million. The operating profit margin increased from 16,7% to 16,8%.
Biscuits revenue grew 7,2% with higher selling prices offset by a 3,7% decrease in sales volumes, reflecting
constrained demand at higher price points in the current environment. Snacks revenue increased 13,5% with higher
selling prices supported by a 6,1% increase in sales volumes.
Gross profit margin decreased, largely due to higher raw material costs not fully recovered in the biscuit category.
The snacks category made good progress on the corn portfolio, gaining volumes profitably and supporting a material
improvement in profit. Selling and administrative cost increases were well contained, contributing to the overall
growth in operating profit.
I&J
Revenue increased by 8,8% from R2,17 billion to R2,36 billion while operating profit increased from R331,0 million
to R389,1 million. The operating profit margin increased from 15,2% to 16,5%.
Revenue growth largely reflects the benefit of the weaker Rand on export sales, with much of the foreign exchange
utilised in the year secured in the second half of last year when rates were weaker, as well as selling price
increases in both the domestic and export markets. Sales volumes were 6,8% lower than last year, impacted by
the unprotected strike in August 2016 and lower quota.
A sound processing performance added to the benefit of the weaker Rand, resulting in a 17,6% increase in operating
profit, notwithstanding the unprotected strike which reduced operating profit by approximately R25 million.
Personal Care
Indigo's revenue from owned brands grew by 11,3% with price increases and volume growth from gains in market share
in key categories. Total revenue growth was lower at 8,9% due to lower growth in Coty revenue. The gross profit
margin decreased due to cost pressure stemming from weaker Rand exchange rates achieved, lower commissions from
Coty and sales mix changes. Selling and administrative expenses were well controlled and operating profit grew
10,8% from R218,0 million to R241,5 million. The operating profit margin increased from 19,9% to 20,2%.
Footwear & Apparel
The Footwear & Apparel category increased revenue by 3,2% to R1,91 billion while operating profit increased by
6,1% from R345,0 million to R366,0 million. The operating profit margin increased from 18,6% to 19,1%.
The Spitz and Kurt Geiger brands grew revenue by 2,0% as a result of higher selling prices, offset by lower footwear
volumes. Core footwear brands performed well considering the constrained consumer environment, particularly in the
second semester when selling prices were left unchanged in recognition of improving Rand exchange rates and
considering the material increases implemented in the last financial year. The gross profit margin increased due
to easing exchange rate pressure through the second semester and was complemented by effective management of
selling and administrative costs. Profit for the second semester was materially higher than for the same period
last year, lifting full year growth in operating profit to 6,2%, from R320,2 million to R339,9 million.
Operating profit margin for the year increased from 21,8% to 22,7%.
Green Cross revenue grew 9,4% to R371,9 million. Retail revenue increased by 15,5% due to price increases in response
to the weaker Rand exchange rates achieved and increased trading space, with four new doors opened in addition to the
eight new stores opened in the 2016 financial year. Product assortment and stock replenishment improved and together with
new doors helped achieve growth in sales volumes notwithstanding sustained discounting by competitors and the constrained
environment. Wholesale revenue declined by 4,7%, reflecting continued volume pressure on this channel as consumers
increasingly display a preference to buy higher priced footwear in branded stores. Gross profit margin decreased slightly
with selling prices constrained by competitive pressures. Selling and administrative costs increased in line with the
number of new doors and operating profit decreased from R27,3 million to R26,8 million.
Profitability is expected to improve as retail trading densities improve and new doors are opened, however an after
tax impairment of R108,0 million has been provided against the Green Cross trademark in recognition of the longer period
required to grow the business to its target profitability.
OUTLOOK
The trading environment is likely to remain difficult in the year ahead, with little prospect of meaningful
improvement in consumer spending and increasing competition in categories with low, or even negative, growth.
We will continue to react quickly to market changes as we pursue the most appropriate balance of price, sales
volumes and profit margins for each of our brands.
Our brands remain healthy and appealing to consumers and we will continue to invest in capabilities that underpin
our manufacturing capacity, product quality and service levels. Where appropriate organisational structures and
fixed overhead costs have been revised to improve operational effectiveness and reduce our cost base. These cost
savings together with exchange rates secured at better levels than last year underpin AVI's opportunity to continue
to grow earnings in the year ahead, provided that consumer demand is reasonable. AVI International, supported by
our South African manufacturing capabilities, continues to build our brands' shares in export markets whilst
sustaining strong profit margins.
I&J's prospects remain materially dependent on exchange rates and fishing performance. Notwithstanding the stronger
Rand, taking account of currency hedges and assuming reasonably consistent catch rates, I&J should be able to
achieve another sound performance supported by improved sales mix, increases in export selling prices and without
a recurrence of the unprotected strike experienced in August 2016.
The Board is confident that AVI remains well positioned to compete effectively; 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
11 September 2017
PRELIMINARY SUMMARISED CONSOLIDATED BALANCE SHEET
Audited at
30 June
2017 2016
Rm Rm
Assets
Non-current assets
Property, plant and equipment 3 480,8 3 352,4
Intangible assets and goodwill 994,0 1 145,4
Investments 376,9 414,5
Deferred taxation 24,1 24,6
4 875,8 4 936,9
Current assets
Inventories and biological assets 2 068,8 1 889,6
Trade and other receivables including derivatives 2 074,9 1 895,5
Cash and cash equivalents 246,7 309,1
4 390,4 4 094,2
Total assets 9 266,2 9 031,1
Equity and liabilities
Capital and reserves 4 851,7 4 489,5
Total equity 4 851,7 4 489,5
Non-current liabilities
Operating lease straight-line liabilities 12,8 10,6
Employee benefits 379,7 342,9
Deferred taxation 375,6 354,9
768,1 708,4
Current liabilities
Current borrowings 1 690,8 1 737,7
Trade and other payables including derivatives 1 925,8 2 081,7
Current tax liabilities 29,8 13,8
3 646,4 3 833,2
Total equity and liabilities 9 266,2 9 031,1
Net debt* 1 444,1 1 428,6
Return on capital employed (%)** 28,0 27,9
* 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
2017 2016 %
Rm Rm change
Revenue 13 184,6 12 188,9 8,2
Cost of sales (7 422,4) (6 842,3) 8,5
Gross profit 5 762,2 5 346,6 7,8
Selling and administrative expenses (3 376,9) (3 192,0) 5,8
Operating profit before capital items 2 385,3 2 154,6 10,7
Interest received 5,1 6,5 (21,5)
Finance costs (157,5) (135,9) 15,9
Share of equity accounted earnings of joint ventures 63,2 58,1 8,8
Capital items (127,5) (14,3) 791,6
Profit before taxation 2 168,6 2 069,0 4,8
Taxation (615,4) (587,8) 4,7
Profit for the year 1 553,2 1 481,2 4,9
Profit attributable to:
Owners of AVI 1 553,2 1 481,2 4,9
Other comprehensive income, net of tax (59,2) 114,3 (151,8)
Items that are or may be subsequently reclassified
to profit or loss
Foreign currency translation differences (37,5) 75,1
Cash flow hedging reserve (8,7) 15,8
Taxation on items that are or may be subsequently
reclassified to profit or loss 2,4 (4,4)
Items that will never be reclassified to profit or loss
Actuarial (loss)/gain recognised (21,4) 38,6
Taxation on items that will never be reclassified
to profit or loss 6,0 (10,8)
Total comprehensive income for the year 1 494,0 1 595,5 (6,4)
Total comprehensive income attributable to:
Owners of AVI 1 494,0 1 595,5 (6,4)
Depreciation and amortisation of property,
plant and equipment, fishing rights and trademarks
included in operating profit 397,4 350,2 13,5
Earnings per share
Basic earnings per share (cents)# 479,0 460,7 4,0
Diluted earnings per share (cents)## 475,2 455,4 4,3
Headline earnings per share (cents)# 507,7 464,1 9,4
Diluted headline earnings per share (cents)## 503,6 458,8 9,8
# Basic earnings and headline earnings per share are calculated on a weighted average of 324 230 182
(30 June 2016: 321 536 201) ordinary shares in issue.
## Diluted earnings and diluted headline earnings per share are calculated on a weighted average of
326 828 137 (30 June 2016: 325 220 785) ordinary shares in issue.
PRELIMINARY SUMMARISED CONSOLIDATED STATEMENT OF CASH FLOWS
Audited
year ended 30 June
2017 2016 %
Rm Rm change
Operating activities
Cash generated by operations before
working capital changes 2 993,6 2 761,8 8,4
Increase in working capital (675,0) (469,3) 43,8
Cash generated by operations 2 318,6 2 292,5 1,1
Interest paid (157,5) (135,9) 15,9
Taxation paid (546,7) (508,6) 7,5
Net cash available from operating activities 1 614,4 1 648,0 (2,0)
Investing activities
Interest received 5,1 6,5 (21,5)
Property, plant and equipment acquired (545,6) (881,8) (38,1)
Additions to intangible assets (2,3) (2,4) (4,2)
Proceeds from disposals of property,
plant and equipment 18,0 10,2 76,5
Movement in joint ventures 79,1 53,3 48,4
Net cash used in investing activities (445,7) (814,2) (45,3)
Financing activities
Proceeds from shareholder funding 63,3 56,3 12,4
Short-term funding (repaid)/raised (46,9) 72,6 (164,6)
Ordinary dividends paid (1 244,5) (1 126,9) 10,4
Net cash used in financing activities (1 228,1) (998,0) 23,1
Decrease in cash and cash equivalents (59,4) (164,2) (63,8)
Cash and cash equivalents at beginning of year 309,1 462,5 (33,2)
249,7 298,3 (16,3)
Translation of cash equivalents of
foreign subsidiaries (3,0) 10,8 (127,8)
Cash and cash equivalents at end of year 246,7 309,1 (20,2)
Movement in net debt
Opening balance 1 428,6 1 202,6 18,8
Short-term funding (repaid)/raised (46,9) 72,6 (164,6)
Decrease in cash and cash equivalents 59,4 164,2 (63,8)
Translation of cash equivalents of
foreign subsidiaries 3,0 (10,8) 127,8
Net debt 1 444,1 1 428,6 1,1
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 2017
Balance at 1 July 2016 114,3 (435,9) 456,7 4 354,4 4 489,5
Profit for the year - - - 1 553,2 1 553,2
Other comprehensive income
Foreign currency translation
differences - - (37,5) - (37,5)
Actuarial losses recognised,
net of tax - - (15,4) - (15,4)
Cash flow hedging reserve,
net of tax - - (6,3) - (6,3)
Total other comprehensive income - - (59,2) - (59,2)
Total comprehensive income
for the year - - (59,2) 1 553,2 1 494,0
Transactions with owners,
recorded directly in equity
Share-based payments - - 28,0 - 28,0
Group share scheme recharge - - 21,4 - 21,4
Dividends paid - - - (1 244,5) (1 244,5)
Issue of ordinary shares to
AVI Share Trusts 166,0 (166,0) - - -
Own ordinary shares sold by
AVI Share Trusts - 60,0 - 3,3 63,3
Transfer between reserves - - 0,3 (0,3) -
Total contributions by and
distributions to owners 166,0 (106,0) 49,7 (1 241,5) (1 131,8)
Balance at 30 June 2017 280,3 (541,9) 447,2 4 666,1 4 851,7
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
NOTES TO THE PRELIMINARY SUMMARISED CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2017
AVI Limited ("AVI" or the "Company") is a South African registered company. These preliminary summarised
consolidated financial statements comprise the Company and its subsidiaries (together referred to as the
"Group") and the Group's interest in joint ventures.
1. Basis of preparation
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.
The accounting policies used in the preparation of the preliminary summarised consolidated financial statements
were derived and are in terms of International Financial Reporting Standards and are consistent with those
accounting policies applied in the preparation of the previous consolidated annual financial statements.
The preliminary summarised consolidated financial statements are prepared in millions of South African Rand
("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 Group has adopted the following new accounting standards, including any consequential amendments to other
standards, in the preparation of these results, all of which became effective to the Group from 1 July 2016:
- Amendments to IAS 1 (Disclosure Initiative)
- Annual improvements to IFRSs: 2012 - 2014 (various standards)
Amendments to IAS 1 (Disclosure Initiative)
The amendments were published by the IASB to provide clarification to IAS 1 - Presentation of Financial
Statements. These amendments aim to improve presentation and disclosures in financial reporting to address
both the preparers as well as the users concerns.
Annual improvements to IFRSs: 2012 - 2014 (various standards)
The new cycles of improvements form part of the IASB's annual improvements process to make non-urgent but
necessary amendments to IFRS. Amendments have been made to a total of four standards.
The implementation of these improvements has not had a significant impact on the Group's results.
The remaining standards, amendments and interpretations, which became effective in the period ended
30 June 2017 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.
2. Segmental results
Audited
year ended 30 June
2017 2016 %
Rm Rm change
Segmental revenue
Food & Beverage brands 10 076,0 9 236,9 9,1
Entyce Beverages 3 757,1 3 421,9 9,8
Snackworks 3 956,2 3 643,2 8,6
I&J 2 362,7 2 171,8 8,8
Fashion brands 3 108,6 2 950,7 5,4
Personal Care 1 194,5 1 096,4 8,9
Footwear & Apparel 1 914,1 1 854,3 3,2
Corporate and consolidation - 1,3
Group 13 184,6 12 188,9 8,2
Segmental operating profit
before capital items
Food & Beverage brands 1 790,6 1 601,8 11,8
Entyce Beverages 735,1 661,7 11,1
Snackworks 666,4 609,1 9,4
I&J 389,1 331,0 17,6
Fashion brands 607,5 563,0 7,9
Personal Care 241,5 218,0 10,8
Footwear & Apparel 366,0 345,0 6,1
Corporate and consolidation (12,8) (10,2)
Group 2 385,3 2 154,6 10,7
3. Determination of headline earnings
Audited
year ended 30 June
2017 2016 %
Rm Rm change
Profit for the year attributable to owners of AVI 1 553,2 1 481,2 4,9
Total capital items after taxation (92,8) (11,0)
Net gain/(loss) on disposal of property,
plant and equipment 9,7 (11,3)
Impairment of property, plant and equipment (2,3) (3,0)
Impairment of Green Cross trademark* (150,0) -
Joint venture capital profit 15,1 -
Taxation attributable to capital items 34,7 3,3
Headline earnings 1 646,0 1 492,2 10,3
Headline earnings per ordinary share (cents) 507,7 464,1 9,4
Diluted headline earnings per ordinary share (cents) 503,6 458,8 9,8
Number Number %
of shares of shares change
Weighted average number of ordinary shares 324 230 182 321 536 201 0,8
Weighted average diluted number of ordinary shares 326 828 137 325 220 785 0,5
* The Green Cross trademark of R399,7 million was recognised on acquisition of the business on
1 March 2012. As part of the annual review of the carrying amounts of trademarks with indefinite
useful lives, an impairment of R150 million has been raised against the trademark in recognition
of the longer period required to grow the business to AVI's target profitability in the current
constrained environment.
4. Commitments
Audited
year ended 30 June
2017 2016
Rm Rm
Capital expenditure commitments for
property, plant and equipment 351,8 327,4
Contracted for 97,6 183,9
Authorised but not contracted for 254,2 143,5
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.
5. 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 2017.
Further information about the assumptions made in measuring fair values is included in the consolidated financial
statements. This is available at the Company's registered office.
6. Post-balance sheet events
No events that meet the requirements of IAS 10 have occurred since the balance sheet date.
7. Dividend declaration
Notice is hereby given that a gross final dividend No 88 of 243 cents per share for the year ended 30 June 2017
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 20%. Consequently a net final dividend
of 194,4 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 350 799 039 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, 10 October 2017
First trading day ex dividend on the JSE Wednesday, 11 October 2017
Record date Friday, 13 October 2017
Payment date Monday, 16 October 2017
In accordance with the requirements of Strate Limited, no share certificates may be dematerialised or
rematerialised between Wednesday, 11 October 2017, and Friday, 13 October 2017, 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 Central
Securities Depository Participant ("CSDP") or broker credited on Monday, 16 October 2017.
8. Reports of the independent auditors
The preliminary summarised consolidated financial statements for the year ended 30 June 2017 have been audited
by KPMG Inc., who expressed an unmodified opinion thereon. The auditor also expressed an unmodified opinion
on the annual consolidated financial statements from which these preliminary summarised consolidated financial
statements were derived. The auditor's report on the preliminary summarised consolidated financial statements
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 auditor's engagement they should obtain
a copy of the auditor's report on the preliminary summarised consolidated financial statements and of the auditor's
report on the annual consolidated financial statements which is available for inspection at the Company's
registered office, together with the accompanying financial statements identified in the respective auditor's report.
9. 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.
10. Annual report
The annual report for the year ended 30 June 2017 will be posted to shareholders on or about Friday, 29 September 2017.
The financial statements will include the notice of the annual general meeting of shareholders to be convened on
Thursday, 2 November 2017.
11 September 2017
ADMINISTRATION AND PRINCIPAL SUBSIDIARIES
ADMINISTRATION
Company registration
AVI Limited ("AVI")
Reg no: 1944/017201/06
Share code: AVI
ISIN: ZAE000049433
Company Secretary
Sureya Scheepers
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
Rosebank Towers
15 Biermann Avenue
Rosebank
Johannesburg 2196
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 director
Gaynor Poretti
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
John Knox
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 Nuhn1,4
Mike Bosman2
Andisiwe Kawa1
Abe Thebyane1
Neo Dongwana2,3
Richard Inskip5
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
5 Resigned 23 November 2016
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