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AVI LIMITED - Results for the year ended 30 June 2019

Release Date: 09/09/2019 07:05
Code(s): AVI     PDF:  
Wrap Text
Results for the year ended 30 June 2019

AVI LIMITED
Registration number: 1944/017201/06
JSE and A2X share code: AVI
ISIN: ZAE000049433
("AVI" or "the Group" or "the Company")

RESULTS FOR THE YEAR ENDED 30 JUNE 2019, AND FINAL DIVIDEND

Note: AVI has adopted the following new accounting standards with effect from 1 July 2018:
- IFRS 15 - Revenue from contracts with customers;
- IFRS 16 - Leases;
- IFRS 9 - Financial instruments.

While the impact at a headline earnings level is negligible for AVI, IFRS 15 and 16 have a material impact
on many of the items reported in the financial statements, rendering direct comparison to last year's results
meaningless for these lines. Refer to note 10 of the summarised consolidated financial statements for
additional information on the impact of the adoption of the new accounting standards. 

Additional tables and schedules have been included in this report to assist in comparing the results to
those for last year on a like-for-like basis. The comparisons to prior year results made on a like-for-like 
basis in the commentary are before taking reclassifications in terms of the new revenue and lease accounting
standards into account. Similarly, this commentary would equally apply to the unadjusted financial information 
after taking into account the effects of the reclassifications. 

The illustrative F19 information presented on a like-for-like basis is the responsibility of the directors
of AVI, and does not constitute financial information fairly presented in accordance with International
Financial Reporting Standards.

Key statistics and features
                                                   IFRS                Like-for-like    
                                               % change                     % change    
Revenue                                            (2,1)                         1,2    
Gross profit                                       (8,9)                        (0,3)   
Gross profit margin                                (6,9)                        (1,5)   
Operating profit                                   (1,2)                        (3,0)   
Operating profit margin                             1,0                         (4,2)   
Headline earnings                                  (4,4)                        (4,7)   
Headline earnings per share                        (4,9)                        (5,2)   
Earnings per share                                 (4,8)                        (5,1)   
Cash generated by operations                        5,9                         (1,8)   

- Improved second semester;
- Like-for-like revenue growth of 1,2%:
  - Pressure on sales volumes in constrained consumer environment;
  - Balanced value versus volume across key categories;
- Gross profit margins protected despite the difficult environment;
- Selling and administrative costs up 1,7% on like-for-like basis, including:
  - Restructuring costs at Green Cross - R27 million;
  - Unrealised loss from mark-to-market of I&J's fuel hedges - R29 million;
- Operating profit down 3,0% on like-for-like basis;
- Cash generated by operations of R2,64 billion down 1,8% like-for-like;
- Investment to sustain and grow our businesses of R472,6 million;
- Negligible impact of new accounting standards on headline earnings;
- Headline earnings per share down 4,9% to 516,6 cents;
- Dividend cover maintained, final dividend of 250 cents per share.

This short-form announcement is the responsibility of the directors and is only a summary of the information
in the full announcement. Any investment decision should be based on the full announcement.
            
The full announcement can be found 
- On the JSE's website at  https://senspdf.jse.co.za/documents/2019/jse/isse/AVI/AVIF19.pdf
- On the Company's website at  https://www.avi.co.za/investor/results-and-presentations/current-year

Copies of the full announcement may also be requested at the Company's registered office and offices of 
our sponsor, at no charge, during office hours.  

Report of the independent auditors
The summarised consolidated financial statements for the year ended 30 June 2019 have been audited by 
Ernst & Young Inc., who expressed an unmodified opinion thereon. The auditor also expressed an unmodified 
opinion on the annual consolidated financial statements from which the summarised consolidated financial 
statements were derived. 

Final dividend
Notice is hereby given that a gross final ordinary dividend No 93 of 250 cents per share for the year ended
30 June 2019 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 200 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 335 430 838 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, 8 October 2019
First trading day ex dividend on the JSE                        Wednesday, 9 October 2019
Record date                                                       Friday, 11 October 2019
Payment date                                                      Monday, 14 October 2019

In accordance with the requirements of Strate Limited, no share certificates may be dematerialised or
rematerialised between Wednesday, 9 October 2019, and Friday, 11 October 2019, 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 CSDP or broker credited on
Monday, 14 October 2019.

By order of the Board

Gavin Tipper                   Simon Crutchley
Chairman                       CEO
9 September 2019

Sponsor
The Standard Bank of South Africa Limited

Date: 09/09/2019 07:05:00
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