| Thu 26 Jun 2008, 8:51 | | AVI - AVI Limited - Trading update and statement for year ending 30 June 2008 |
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AVI
AVI
AVI - AVI Limited - Trading update and statement for year ending 30 June 2008
AVI Limited
(Registration number 1944/017201/06)
Share code: AVI
ISIN: ZAE000049433
("AVI" or "the Group")
TRADING UPDATE AND STATEMENT FOR YEAR ENDING 30 JUNE 2008
The following update is based on the latest available trading information and
covers performance for the Group`s continuing operations.
Segmental revenue for continuing operations for the eleven months ended 31 May
2008
Revenue 2008 2007 Change
Rm Rm %
Entyce beverages 1,393 1,225 13.7
Snackworx 1,535 1,304 17.7
Chilled and frozen convenience brands* 1,551 1,514 2.4
Out of home 366 315 16.2
Fashion brands - personal care 577 519 11.2
Fashion brands - footwear and apparel 591 475 24.4
Corporate 15 19
Group 6,028 5,371 12.2
* = excludes Alpesca
Group revenue for the eleven months to May 2008 was 12.2% higher than in the
comparable period of the prior year. Demand for the Group`s products has, in
general, remained sound through the second half of the year in the context of
reduced consumer disposable income and selling price increases driven by a
weaker rand and materially higher commodity and fuel costs. Seafood revenues
were impacted by lower hake volumes in line with reductions in the South African
quota.
Following an extensive review AVI`s board has resolved to disinvest from the
Argentinean hake and shrimp operations conducted by Alpesca s.a.("Alpesca"), a
wholly owned subsidiary of Irvin and Johnson Holding Company (Proprietary)
Limited ("I & J"). Notwithstanding the value inherent in Alpesca`s long term
hake and shrimp fishing rights and strong processing capabilities, this asset
has proven difficult for I & J to achieve consistent economic returns from and
it has detracted significantly from the focus on optimising I & J`s South
African operations. The prior year`s results will be re-presented to reflect
Alpesca`s contribution to Group results as results from discontinued operations.
The effect of this is set out below:
Year ended 30 June 2007 2007 2007 2007
Continuing operations As originally Alpesca Re-presented
reported
Rm Rm Rm
Revenue 6,332.4 480.6 5,851.8
Operating profit 735.4 33.1 702.3
Headline earnings 460.6 26.1 434.5
As a consequence of AVI`s share buy-back program, the weighted average number of
shares in issue for the year is expected to be approximately 2.5% lower than for
the year ended 30 June 2007.
The following statement is made in accordance with Section 3.4 (b) of the
Listings Requirements of the JSE Limited:
- Consolidated headline earnings per share for the continuing operations of
the Group for the year ending 30 June 2008 are expected to increase by
between 8% and 15% over the headline earnings per share for the year ended
30 June 2007;
- Consolidated headline earnings per share for the Group`s total operations,
including Alpesca, for the year ending 30 June 2008 are expected to
increase by between 2% and 9% over the headline earnings per share for the
year ended 30 June 2007;and
- Consolidated earnings per share for the continuing operations of the Group
for the year ending 30 June 2008, including net capital gains on the
disposal of assets, are expected to reflect an improvement of between 3%
and 10% over the earnings per share for the year ended 30 June 2007.
It is expected that AVI will release its audited results for the year ending 30
June 2008 on 4 September 2008.
The information above has not been reviewed and reported on by the Group`s
auditors.
Illovo
26 June 2008
Sponsor
Standard Bank
Enquiries
Simon Crutchley Tel: +(27) 11 502 1322
Chief executive officer
Owen Cressey Tel: +(27) 11 502 1323
Chief financial officer
Date: 26/06/2008 08:51:15 Produced by the JSE SENS Department.
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