AVI LIMITED - Trading Statement And Update For The Six Months Ended 31 December 2021

Trading Statement And Update For The Six Months Ended 31 December 2021

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

TRADING STATEMENT AND UPDATE FOR THE SIX MONTHS ENDED 31 DECEMBER 2021

The trading environment remained challenging with inflationary pressure and
growing unemployment impacting consumer spending. Rising supply chain costs
and disruptions were notable in the semester but were effectively managed.

Group revenue increased by 2.3% over the same period last year. Revenue
growth in Entyce and Snackworks was underpinned by selling price increases
taken in response to cost pressures from rising commodity input costs.
Volumes grew marginally compared to the prior year, which had benefited
from lockdown related demand in the first quarter. Encouragingly Snackworks’
biscuit demand was robust through the second quarter. I&J’s revenue grew
marginally with the abalone business sustaining its recovery following a
myriad of COVID related market disruptions during the last 24 months.
Revenue from the footwear and apparel business was 1.2% lower with the lost
sales from the July unrest, stock availability challenges and unplanned
outages not fully recovered by pleasing growth of 7.4% in December sales,
over the prior year. Indigo’s beauty and personal care categories remain
challenged by COVID related demand shifts, particularly segments of the
beauty portfolio where demand remains well below pre-COVID levels.

In general, the Group’s gross margin was protected by ongoing efforts to
control production and input costs, and by increased selling prices in
specific categories. In some categories competitor activity limited a full
recovery of commodity cost pressures through selling price increases.

Fixed costs were well managed and the ongoing effort to limit cost
escalations to rates below inflation, despite additional once-off corporate
activity costs related to Mondelez’s interest in acquiring AVI’s Snackworks
business, provided reasonable leverage to the Group’s operating profit.

Net finance costs for the year were higher than last year due to increased
average debt levels.

CAPITAL GAINS
There were no material capital items in the current financial year.

CONSOLIDATED HEADLINE AND ATTRIBUTABLE EARNINGS
The weighted average number of shares in issue is expected to be 0,2%
higher than last year due to the issue of new shares in terms of the
Group’s various share incentive schemes.

We hereby advise shareholders, in accordance with Section 3.4 (b) of the
Listings Requirements of the JSE Limited, that:

   -   Consolidated headline earnings per share for the six months ended
       31 December 2021 are expected to increase by between 5.5% and 7.5%
       over the prior year, translating into an increase from last year’s
       297,3 cents to a range of between 313,6 and 319,6 cents per share;
       and

   -   Consolidated earnings per share for the six months ended 31 December
       2021, including capital gains and losses, are expected to increase
       by between 5.5% and 7.5% over the prior year, translating into an
       increase from last year’s 296,6 cents to a range of between 313,0
       and 318,9 cents per share.

It is expected that AVI will release its full results for the six
months ended 31 December 2021 on or about 7 March 2022.

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


Illovo
25 January 2022

Sponsor
The Standard Bank of South Africa Limited

Date: 25-01-2022 03:15:00
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