Voluntary Trading Update And Statement For The Six Months Ended 31 December 2017
(Incorporated in the Republic of South Africa)
(Registration number 1944/017201/06)
Share code: AVI
(“AVI” or “the Group”)
VOLUNTARY TRADING UPDATE AND STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2017
As anticipated, revenue growth for the first semester was constrained by a challenging trading environment.
Group revenue rose 2,3% with the impact of selling price increases taken during the prior financial year partially
offset by declines in sales volumes in some key categories.
The consolidated gross profit margin improved with the accumulated pressure on imported costs ameliorated by
improved exchange rates compared to last year. In addition, selling and administrative expenses increased at a
rate below inflation, benefitting from savings from restructuring activity in the second half of the last financial
Spitz achieved a record December profit with volume growth supported by the core brands and the stronger
Rand resulting in some recovery of gross profit margin versus the prior year. I&J benefitted from the non-
recurrence of the unprotected strike at its fishing operations in August 2016, which resulted in an increase in
operating profit notwithstanding the impact of the stronger Rand on export revenue.
Considering the demand environment, operating profit growth of 8,7% for the semester, coupled to an increase
in operating profit margin, is pleasing.
Exchange rates secured for the remainder of the financial year are at better levels than last year, underpinning
AVI’s opportunity to manage sales volumes and profit margins in the constrained environment and grow
earnings in the second semester, provided that consumer demand is reasonable.
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
- Consolidated headline earnings per share for the six months ended 31 December 2017 are
expected to increase by between 7% and 8% over the comparable period in the prior year,
translating into an increase from last year’s 302.9 cents to a range between 324 and 327 cents per
- Consolidated earnings per share for the six months ended 31 December 2017, including capital
gains and losses, are expected to increase by between 6% and 7% over the comparable period in the
prior year, translating into an increase from last year’s 305,4 cents to a range between 324 and 327
cents per share.
It is expected that AVI will release its results for the six months ended 31 December 2017 on or about
12 March 2018.
The information above has not been reviewed and reported on by the Group’s auditors.
23 January 2018
Sponsor The Standard Bank of South Africa Limited
Enquiries +(27) 11 502 1300
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