| Mon 29 Jun 2009, 10:47 | | AVI - AVI Limited - Trading update and statement for year ending 30 June 2009 |
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AVI
AVI
AVI - AVI Limited - Trading update and statement for year ending 30 June 2009
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 2009
The following update covers performance for the Group`s continuing operations.
Segmental revenue for continuing operations for the eleven months ended 31 May
2009
Revenue 2009 2008 Change
Rm Rm %
Entyce beverages 1,496 1,393 7.4
Snackworks 1,854 1,535 20.8
Chilled and frozen convenience brands* 1,701 1,551 9.7
Out of home 410 366 12.0
Fashion brands - personal care 673 577 16.6
Fashion brands - footwear and apparel 629 591 6.4
Corporate 10 15
Group 6,773 6,028 12.4
* = excludes Alpesca
Group revenue for the eleven months to May 2009 was 12.4% higher than in the
comparable period of the prior year.
Growth in demand for the Group`s food and beverage brands has slowed
progressively through the year as consumers` disposable income has come under
increasing pressure, resulting in current demand at levels similar to a year ago
in most categories. The personal care category has continued to perform strongly
with our brands well positioned to gain support from consumers in tougher times.
Demand for AVI`s premium footwear brands was adversely impacted by reduced
consumer spending and like-for-like revenue, excluding stores not open for a
full year, was 9% lower than the same period in the previous year.
Although the consolidated gross profit margin has stabilised in the second half
of the year, it is still slightly below the level achieved in the second half of
the previous year. Some softening in commodity prices has been offset by
selective selling price adjustments to support volumes. Notwithstanding the
lower gross profit margin, consolidated operating profit margin has been held at
a similar level to last year.
As noted in the interim results, the Group`s planned increase in gearing during
the prior year, combined with higher average interest rates, has resulted in a
material increase in net finance charges compared to the same period in the
prior year.
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 2.7% lower than for
the year ended 30 June 2008.
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 2009 are expected to increase by between 5%
and 10% over the headline earnings per share for the year ended 30 June 2008;
Consolidated earnings per share for the continuing operations of the Group for
the year ending 30 June 2009, including net capital gains on the disposal of
assets, are expected to reflect an improvement of between 5% and 10% over the
earnings per share for the year ended 30 June 2008.
Discontinued operations
Efforts 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") have been frustrated by reduced
access to funding for prospective purchasers caused by the global liquidity
crisis. The Board remains committed to disinvesting from this asset and believes
that improving global liquidity will assist in achieving a disposal during the
next year. Alpesca`s hake operation has continued to perform soundly in the
context of a difficult operating environment however the shrimp operation has
performed poorly due to low catch rates and soft selling prices in the second
half of the year. The carrying value of the shrimp operating assets of
approximately USD10 million is likely to be partially impaired in the current
financial year, with the final impairment amount to be established in August
2009 based on information that is relevant to the position at year end.
It is expected that AVI will release its audited results for the year ending 30
June 2009 on 7 September 2009.
The information above has not been reviewed and reported on by the Group`s
auditors.
Illovo
29 June 2009
Sponsor
Standard Bank
Enquiries
Simon Crutchley Tel: +(27) 11 502 1300
Chief Executive Officer
Owen Cressey Tel: +(27) 11 502 1300
Chief Financial Officer
Date: 29/06/2009 10:47:23 Produced by the JSE SENS Department.
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