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AVI LIMITED - Chairmans Comment On Trading Conditions

Release Date: 01/11/2018 12:10
Code(s): AVI     PDF:  
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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 provided an update on trading conditions. Comparisons to
prior year results were made on a like-for-like basis, before
taking reclassifications in terms of the new revenue and lease
accounting standards, which were adopted with effect from 1
July 2018, into account.

“Group revenue for the first quarter ended September 2018
increased 2,5% over the same period in the prior year, with the
increase mostly due to volume growth in several categories as
well as improved export revenue in I&J in line with the weaker
Rand. Sales growth in a number of categories was limited by the
continuing constrained consumer environment and disruptions in
several of our major customer’s distribution operations. These
disruptions were largely resolved during October and the Group
has seen improved sales in the food and beverage businesses as
retailer stock levels normalise.

The consolidated gross profit margin was in line with last year
with the Rand cost of key imported raw materials protected by
the Group’s consistent hedging practices. The weaker Rand
experienced over the last few months is likely to result in
increased cost pressure later in the financial year, which the
Group will seek to offset through ongoing cost management as
well as selling price increases where appropriate.

Results for the remainder of the 2019 financial year remain
materially dependent on sound consumer demand over the festive
season and through the second semester."

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

Illovo
1 November 2018

Sponsor
The Standard Bank of South Africa Limited

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