Weaker trading, blackouts see AVI record decline in earnings

DURBAN – South African consumer brands company AVI reported a decline in earnings for the six months to end December, hit by weaker than anticipated trading which was exacerbated by load shedding and aggressive competitor pricing in certain categories.

The group reported a 3.8 percent decline in headline earnings per share (Heps) to 293.8 cents a share while revenue was marginally up by 1 percent to R7.14 billion as the trading environment remained difficult with continued pressure on consumer spending resulting in sales volume weakness in many of its businesses.

During the period, its division I&J sold its interest in a joint venture with Simplot for R633 million and a capital gain, after tax, of R374m.

“This resulted in a 35.3 percent increase in basic earnings per share for the semester to 410.2c,” the group said.

AVI, with a portfolio of more than 50 brands, which include Five Roses, Bakers, Freshpak and Spitz, also saw its headline earnings declining by 3.5percent to R970m.

Source: iol.co.za