Wrap Text
Voluntary Trading Statement And Update For The Year Ended 30 June 2026
AVI LIMITED
Registration number 1944/017201/06
Share code: AVI
ISIN: ZAE000049433
("AVI" or "the Company" or "the Group")
VOLUNTARY TRADING STATEMENT AND UPDATE FOR THE YEAR ENDED 30 JUNE 2026
Segmental revenue for the year ended 30 June 2026
2026 2025 %
Rm Rm Change
Food & Beverage 13 710,9 13 478,0 1,7
Entyce Beverages 5 164,1 5 298,4 (2,5)
Snackworks 5 717,0 5 611,8 1,9
I&J 2 829,8 2 567,8 10,2
Fashion brands 2 529,4 2 543,5 (0,6)
Personal Care 877,0 924,3 (5,1)
Footwear & Apparel 1 652,4 1 619,2 2,1
Group 16 240,3 16 021,5 1,4
AVI's results for the year ended 30 June 2026 reflect another resilient
performance in what remains a challenging trading environment. The first
semester benefitted from selling price increases, volume growth in several
categories and sound margin management, supported by cost efficiency
initiatives implemented in the prior year. The second semester was more
challenging. Weaker consumer demand was exacerbated by materially higher
fuel prices, sustained high interest rates and a generally more competitive
environment. The last quarter's sales were substantially impacted by lower
demand from distributors and wholesale customers delaying purchases due to
the threat of unrest surrounding the 30 June national protest action.
Overall, Group revenue grew by 1,4%, with first semester growth partially
offset by weaker demand in some categories during the second half.
Consolidated gross profit increased at a slightly lower rate, with margins
well protected and improvements achieved in most categories, except Entyce,
where aggressive competition limited the Group's ability to sustain the
exceptional prior year base in the creamer category. Selling and
administrative expenses were well managed, with restructuring initiatives
implemented during the prior and current year supporting a 3,2% reduction.
This underpinned the improvement in the Group's operating profit and the
operating profit margin.
Entyce's operating profit declined as increased competition in the creamer
category required selling price reductions to support sales volumes. The
remaining categories improved profitability, with effective cost
management, including savings from restructuring initiatives, and higher
selling prices ameliorating the impact of increased commodity costs and
reduced sales volumes.
Snackworks profits improved, supported by a strong first semester, with
growth in the biscuit category partially offset by lower profits in the
maize and potato snack categories. Innovation provided incremental volume,
but this growth was offset by lower sales volumes in two international
markets. Margins improved and were supported by cost saving initiatives
which resulted in lower selling and administrative costs.
I&J's operating profit improved, with a stronger fishing performance offset
by lower abalone profitability. Fishing profitability benefitted from
improved selling prices and the additional capacity from the new freezer
vessel, which supported improved export hake fillet sales volumes.
International market demand remained strong, with the impact of higher fuel
prices in the last quarter ameliorated through selling price increases and
fuel hedges. The abalone category remained challenged, with over-supply
constraining selling prices and impacting sales in key markets. I&J's
profitability was impacted by an unfavourable, non-cash, biological asset
revaluation of R84,0 million at the year-end.
Indigo's personal care profit improved marginally over the prior year
benefiting from cost saving initiatives and pleasing demand for innovations
launched during the year. The Body Spray category remained challenged by
competitive intensity and Indigo's ongoing rationalisation of its body spray
range to strengthen medium term profitability.
Footwear and apparel brands delivered a pleasing result, with growth
supported by the non-repeat of prior year supply chain challenges, good
demand for core footwear brands through the peak December trading period
and the non-recurrence of prior year costs associated with the closure of
Green Cross. Footwear sales volumes improved in both the first and second
semester, albeit constrained by widespread deep discounting by big-box
apparel retailers.
Net finance costs were lower than last year supported by the impact of
reduced interest rates and lower average borrowing levels with strong cash
generation sustained. The effective tax rate is largely in line with the
prior year.
CAPITAL GAINS
There were no material capital items with gains decreasing on a prior year
which included profits on the disposal of the assets and business conducted
by I&J's Umsobomvu joint venture.
CONSOLIDATED HEADLINE AND ATTRIBUTABLE EARNINGS
The weighted average number of shares in issue is expected to be 0,6%
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 6.30 of the
Listings Requirements of the JSE Limited, that:
- Consolidated headline earnings per share for the year ended 30 June
2026 are expected to increase by between 4,0% and 6,0% over the
prior year, translating into an increase from last year's 729,1 cents
to a range of between 758,3 and 772,9 cents per share; and
- Consolidated earnings per share for the year ended 30 June 2026,
including capital gains and losses, are expected to increase by
between 4,0% and 6,0% over the prior year, translating into an
increase from last year's 732,6 cents to a range of between 761,9
and 776,6 cents per share.
It is expected that AVI will release its full results for the year ended
30 June 2026 on or about 7 September 2026.
The information above has not been reviewed and reported on by the Group's
external auditors.
Illovo
30 July 2026
Sponsor
The Standard Bank of South Africa Limited
Date: 30-07-2026 03:01:00
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