AVI LIMITED - Trading Statement And Update For The Year Ended 30 June 2021

Trading Statement And Update For The Year Ended 30 June 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 YEAR ENDED 30 JUNE 2021

Group revenue for the year increased by 0,5% mainly due to higher volumes
at I&J in the second semester and price increases in most categories to
offset cost pressures, primarily as a result of the weaker Rand. Apart from
I&J, sales volumes for the year were lower than last year, with the fashion
brands impacted by a weak first semester, as consumer demand slowly improved
post the initial hard lockdown period, while demand for food and beverage
brands normalised from the peak demand levels seen during the fourth quarter
of the last financial year.

Operational disruption from COVID-19 was minor with all operations in
compliance with the government’s lockdown regulations. Gross profit margins
were largely protected from the impact of lower sales volumes and the weaker
Rand through effective management of costs and promotional activity, as
well as selling price increases where necessary. Effective cost management
yielded a reduction in selling and administrative costs for the year,
resulting in growth in operating profit.

Performance in the second semester has been largely in line with the outlook
provided in March 2021. Revenue from our fashion brands was 13,5% higher
than in the second semester of last year, which was adversely impacted by
the hard lockdown restrictions. This offset much of the decline in volumes
and revenue in Entyce and Snackworks, which conversely benefitted from
increased demand during the hard lockdown. I&J achieved better results in
both the fishing and abalone operations, resulting in a significant
contribution to revenue and profit growth for the second semester and the
full year.

Net finance costs for the year were materially lower than last year in line
with lower interest rates and average debt levels, adding to the growth in
headline earnings for the year.


CAPITAL GAINS
The first semester of the previous financial year included a capital gain,
after tax, of R373,7 million on the disposal of I&J’s 40% interest in the
Simplot joint venture in Australia. As there were no material capital items
in the current financial year, attributable earnings decreased.
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 year ended 30 June
       2021 are expected to increase by between 5% and 7% over the prior
       year, translating into an increase from last year’s 470,8 cents to a
       range of between 494 and 504 cents per share; and

   -   Consolidated earnings per share for the year ended 30 June 2021,
       including capital gains and losses, are expected to decrease by
       between 15% and 17% over the prior year, translating into a decrease
       from last year’s 591,6 cents to a range of between 491 and 503 cents
       per share.


It is expected that AVI will release its full results for the year
ended 30 June 2021 on or about 6 September 2021.


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



Illovo
27 July 2021

Sponsor
The Standard Bank of South Africa Limited

Date: 27-07-2021 11:51:00
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