| Mon 7 Sep 2009, 7:17 | | AVI - AVI Limited - Audited Results For The Year Ended 30 June 2009 |
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AVI
AVI
AVI - AVI Limited - Audited Results For The Year Ended 30 June 2009
AVI LIMITED
Registration number: 1944/017201/06
SHARE CODE: AVI & ISIN: ZAE000049433
("AVI" or "the Group" or "the Company")
AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2009
KEY FEATURES
Revenue from continuing operations up 12% to R7,5 billion
Operating profit from continuing operations up 14% to R908 million
Headline earnings per share from continuing operations up 10% to 175 cents
Cash from operations before working capital change up 6% to R1,1 billion
Final dividend of 52 cents and total dividend up 10% to 88 cents per share
GROUP OVERVIEW
AVI has delivered solid earnings growth and maintained a strong balance sheet
despite the challenging environment with both increasing pressure on consumers`
disposable incomes and high costs of key raw materials. Headline earnings per
share increased by 9,9% to 174,7 cents per share. Cash generated from operations
amounted to R1,1 billion and net debt has reduced to R547,7 million at the end
of the year from R724,4 million a year ago.
In addition to the sound financial performance and more relevant to the Group`s
longer-term prospects, good progress has been made across many operational areas
which has strengthened the competitiveness and relevance of our key brands to
consumers.
Food pricing has been an understandably high profile issue during the year with
South African consumers impacted by the consequences of higher commodity prices
on staple foods. Whilst AVI is not a staple food producer it has strived to
balance the needs of consumers with our shareholder`s return requirements with
numerous activities to ensure that our brand proposition remains relevant in
tougher times, including lower selling prices on key lines.
Prices for a substantial quantity of the raw materials consumed during the year
had been secured before the spot prices for some commodities dropped sharply,
resulting in prolonged pressure on margins in a number of key categories.
Consequently the consolidated gross profit margin was lower than last year with
higher input costs not fully recovered in selling prices. Despite this, it was
pleasing to see more stable margins in the second half of the year and some
softening in commodity prices allowed selective selling price reductions to be
made to support volumes. Notwithstanding the lower gross profit margin, the
consolidated operating profit margin increased as a result of the overall
increase in selling and administration costs being held below inflation.
Growth in demand for the Group`s food and beverage brands slowed progressively
through the year, ending the year 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 these leaner times
while overall demand for AVI`s premium footwear brands was lower than last year
but remains sound for our core brands.
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 is classified as a discontinued operation and presented
accordingly in these results. The shrimp operation has been impaired in
recognition of the possibility that the disposal of these assets may not recover
the full carrying value.
CONTINUING OPERATIONS
Revenue rose by 12,0% from R6,7 billion to R7,5 billion. The consolidated gross
profit margin declined from 41,3% of revenue to 39,9% as a result of cost
pressures which were only partially offset by selling price increases. Selling
and administration costs were well contained at a 6,1% increase and operating
profit rose by 13,7%, from R798,7 million to R908,5 million with the operating
profit margin up from 12,0% to 12,2%.
The Group`s planned increase in gearing, combined with higher interest rates,
resulted in a material increase in net finance charges from R64,0 million to
R125,0 million.
Headline earnings increased by 6,9% from R486,7 million to R520,4 million.
Headline earnings per share increased by 9,9% to 174,7 cents per share as the
weighted average number of shares in issue decreased by 2,7% following the share
buy-back which programme commenced after the annual general meeting in October
2007. No shares were re-purchased during the 12 months to June 2009.
The capital items of R17,1 million before tax largely comprise a R26,4 million
profit on the sale of an I&J property and a R23,8 million profit on the disposal
of a non-core subsidiary that packed private label teas and coffees, partially
offset by impairments of intangible assets in the retail juice and Nina Roche
footwear businesses.
Cash generated by operations increased by 67,1% to R1 116,6 million. Ongoing
strong cash generation was augmented by a reduction in working capital which
largely reflects an early build up of stock levels reported at the end of June
2008. Net working capital decreased from 19,7% of sales in 2008 to 16,8% of
sales. Other material cash out-flows during the period were taxation of R392,9
million, capital expenditure of R257,8 million and dividends of R247,2 million.
Net debt at the end of June 2009 was R547,7 million compared to R724,4 million
at the end of June 2008.
Capital expenditure of R257,8 million comprised mainly replacement expenditure
and R42,8 million for an additional vessel for I&J`s wet fishing fleet as part
of the long-term fleet replacement plan.
SEGMENTAL REVIEW - CONTINUING OPERATIONS
Year ended 30 June
Segmental revenue Segmental operating
profit
2009 2008 Change 2009 2008 Change
Year ended 30 June Rm Rm % Rm Rm %
Food & beverage 6 052,1 5 392,8 12,2 724,8 612,5 18,3
brands
Entyce 1 670,5 1 547,5 7,9 223,4 189,1 18,1
Snackworks 2 015,6 1 677,2 20,2 184,6 185,8 (0,6)
Chilled & frozen 1 916,3 1 775,4 7,9 261,0 194,9 33,9
convenience brands
Out of home 449,7 392,7 14,5 55,8 42,7 30,7
Fashion brands 1 400,6 1 253,3 11,8 196,2 206,3 (4,9)
Personal care 730,2 623,5 17,1 94,5 73,4 28,7
Footwear & apparel 670,4 629,8 6,4 101,7 132,9 (23,6)
Corporate 9,7 14,5 (12,5) (20,1)
Group 7 462,4 6 660,6 12,0 908,5 798,7 13,7
Entyce
Revenue increased 7,9% due to input cost driven price increases across all
categories which were partially offset by lower sales volumes. Underlying
consumer demand was sound, albeit with less growth than in the last few years,
however strong competition in all categories saw volumes decline compared to
last year.
A strategy of allowing limited loss of market share while maintaining prices to
protect profit margins yielded good results for Entyce with gross profit margin
for the year maintained at the same level as last year despite significantly
higher input costs for much of the year. The disposal of a non-core subsidiary
that packed private label teas and coffees resulted in lower volumes but an
improved product mix with better profit margins. Key brands have been well
supported with advertising and product development, helping to hold strong
positions despite prolonged discounting by competitors. Creamer was promoted
strongly in the second half to combat increased competition from cheaper
formulations which resulted in lower margins for the year. The retail juice
operations were re-configured as a smaller regional business and once-off costs
of R5,5 million relating to the closure of the Gauteng and KwaZulu-Natal
operations were incurred during the year. Selling and administration costs were
well controlled and operating profit increased by 18,1% from R189,1 million to
R223,4 million with the operating profit margin at 13,4% compared to 12,2% in
the prior period.
Snackworks
Revenue increased by 20,2% largely due to the accumulated impact of price
increases taken over the last two years in response to the unprecedented rise in
soft commodity prices. Increased new product development and promotional
activity has yielded good results with a number of new products to support the
many consumer favourites under the Bakers, Pyotts and Willards brands. Volumes
were slightly higher than last year with a 7,2% increase in snack volumes
largely offset by lower biscuit volumes. Underlying consumer demand for biscuits
has declined in the second half with some evidence of lower LSM consumers
spending less on discretionary categories.
Notwithstanding the increase in selling prices, higher input costs were not
fully recovered in this year resulting in lower profit margins for the year
which was exacerbated by a mix change to more affordable biscuit products within
our portfolio. Operating profit consequently decreased by 0,6% from R185,8
million to R184,6 million with the operating profit margin at 9,2% compared to
11,1% in the previous financial year.
Chilled and Frozen Convenience Brands (I&J* and Denny)
*excluding Alpesca
Revenue increased by 7,9% and operating profit increased by 33,9% from R194,9
million to R261,0 million with the operating profit margin improving from 11,0%
to 13,6%.
The main contributor was I&J`s South African operations which realised higher
export prices in the first half of the year as well as improved catch rates.
Together with improved processing efficiencies and lower selling and
administration costs these factors impacted favourably on the operating
performance. However, export prices and demand have been under pressure during
the second semester due to lower demand from European food service markets and
the strength of the Rand.
Denny had a poor second half with inconsistent production and downward pressure
on prices as a result of lower demand, particularly in the out-of-home channel.
Operating profit for the year decreased from R34,5 million to R23,1 million.
Out of Home (Ciro Beverage Solutions and Sir Juice)
Revenue increased by 14,5% mainly due to selling price increases in response to
higher raw material costs. Core coffee and juice volumes were in line with last
year with new customers offsetting general pressure on the restaurant and coffee
shop channel, especially in the second half. Operating profit increased by 30,7%
from R42,7 million to R55,8 million with the juice business in particular having
a strong second semester, supported by better coffee production efficiencies.
The operating profit margin increased from 10,9% to 12,4%.
Fashion Brands (personal care, footwear and apparel)
Revenue rose by 11,8% with strong volume growth in personal care supported by
price increases to partially offset the impact of the weaker rand on imports.
Operating profit decreased from R206,3 million to R196,2 million and operating
margin decreased from 16,5% to 14,0%, reflecting the decrease in profitability
in the footwear and apparel business.
In the personal care category, Indigo Cosmetic`s revenue increased strongly by
17,1%. Body spray volumes again grew materially and were well supported by good
performances in the fragrance and make-up categories. Selling price increases
were below inflation which has helped volume growth but, together with the
impact of the weaker rand on imported materials, has put pressure on gross
margins. Volume leverage offset the impact of the lower gross margin and the
operating profit margin improved from 11,8% to 12,9%. Operating profit increased
28,7% from R73,4 million to R94,5 million.
Revenue in the footwear and apparel category increased by 6,4%, largely due to
increased selling prices in Spitz following the substantial weakening of the
rand in the first half of the year and higher volumes in Gant and Nina Roche.
Operating profit declined from R132,9 million to R101,7 million with lower
profit margins in Spitz and operating losses in Gant and Nina Roche.
In Spitz, demand for Carvela remained strong while volumes for the Lacoste and
Kurt Geiger brands were sound in the context of reduced consumer spending, but
lower than last year. Trading densities were impacted by lower sales volumes and
temporary supply chain delays in the first half arising from both delayed stock
shipments and the implementation of SAP. ?Average trading space increased by
18%. Over the last few years Spitz has invested in new and refurbished stores as
well as people and systems to underpin the long term sustainability of the
expanded business. This has resulted in a higher fixed cost base which
contributed to a decrease in operating profit margin from 23,1% to 18,1% in the
current year. Operating profit declined from R139,0 million to R114,2 million.
DISCONTINUED OPERATION
Despite a lower hake quota, Alpesca showed an improvement in operating profit in
the current period, from an operating loss of R10,2 million to a profit of R4,6
million. This improvement is attributable to Alpesca`s hake operations which
enjoyed strong selling prices in the first half and good catch rates in the
second half, as well as some relief from export duties granted by the
Argentinean government. Demand in the second half has slowed considerably
resulting in lower sales prices and volumes. The loss after tax of R30,8 million
includes an impairment charge of R30,0 million against Alpesca`s shrimp
operations, and the devaluation of tax assets in line with the weakening of the
Argentinian Peso.
DIVIDENDS
The AVI board is satisfied that the Group`s gearing is well aligned with the
current economic environment and that cash generated by operations will remain
healthy. Accordingly the dividend cover has been maintained at 2,0 times diluted
headline earnings per share from continuing operations and a final dividend of
52 cents per share has been declared, bringing the total dividend to 88 cents
per share (2008: 80 cents per share).
UNSOLICITED APPROACH FROM TIGER BRANDS LIMITED
During the year Tiger Brands Limited (Tiger) made an unsolicited approach to
acquire the entire issued share capital of AVI, the terms of which were
published by Tiger in an announcement on SENS on 17 November 2008. This
expression of interest was never converted into a formal offer but a revised
proposal was tabled to AVI`s Board on 22 January 2009 following which the AVI
Board placed the Company under cautionary on 26 January 2009. After a process of
engagement, Tiger unilaterally withdrew its expression of interest on 4 March
2009 following which AVI also withdrew its cautionary announcement. AVI incurred
costs of R6,0 million related to this process.
OUTLOOK
Despite lower interest rates we believe that it is likely that consumer demand
will remain muted in the first half of the new financial year but would hope to
see some improvement in the second half.? In addition I&J, which is geared to
export volumes, international prices and foreign exchange rates may not deliver
the same level of profit in the year ahead if current exchange rates and export
market demand persists.
However, AVI`s diversified market-leading brand portfolio is well positioned to
continue providing a strong value proposition to consumers during tough times.
This strength combined with the prospect of further benefits from lower
commodity costs, our ongoing focus on yields and cost savings, as well as
improved innovation, should enable AVI to compete effectively for market share
and sustain our growth ambition in the current climate.
PRELIMINARY SUMMARISED GROUP BALANCE SHEETS
Audited Audited
at 30 June at 30 June
2009 2008
Rm Rm
ASSETS
Non-current assets
Property, plant and equipment 1 205,1 1 164,8
Intangible assets and goodwill 925,4 986,2
Investments 276,8 312,8
Deferred tax asset 74,4 89,1
2 481,7 2 552,9
Current assets
Inventories and biological assets 950,0 873,0
Trade and other receivables including 1 170,1 1 178,7
derivatives
Cash and cash equivalents 516,6 174,9
Assets of discontinued operations classified 390,5 460,1
as held-for-sale*
Other assets classified as held-for-sale** 8,2 32,9
3 035,4 2 719,6
Total assets 5 517,1 5 272,5
EQUITY AND LIABILITIES
Capital and reserves
Attributable to equity holders of AVI 2 675,9 2 518,8
Minority interests (23,3) (17,5)
Total equity 2 652,6 2 501,3
Non-current liabilities
Financial liabilities, borrowings and 544,1 409,7
operating lease straight-line liabilities
Employee benefits 295,9 293,5
Deferred taxation 110,3 154,0
950,3 857,2
Current liabilities
Current borrowings including derivatives 639,3 536,3
Trade and other payables 1 092,9 1 048,1
Corporate taxation 13,4 73,4
Liabilities of discontinued operations 168,6 256,2
classified as held-for-sale*
1 914,2 1 914,0
Total equity and liabilities 5 517,1 5 272,5
*Discontinued operations comprise the Argentinian hake and shrimp
operations conducted by Alpesca, a wholly owned subsidiary of I&J.
(June 2008: Argentinian hake and shrimp operations conducted by
Alpesca)
**Other assets held-for-sale comprise retired vessels & equipment
held for disposal. (June 2008: retired vessels and equipment for
disposal and properties held-for-sale)
PRELIMINARY SUMMARISED GROUP INCOME STATEMENTS
Audited Audited Change
year year %
ended ended
30 June 30 June
2009 2008
Rm Rm
CONTINUING OPERATIONS
Revenue 7 462,4 6 660,6 12,0
Cost of sales 4 485,5 3 912,3 14,7
Gross profit 2 976,9 2 748,3 8,3
Selling and administrative expenses 2 068,4 1 949,6 6,1
Operating profit before capital items 908,5 798,7 13,7
Income from investments 22,4 22,5 (0,5)
Finance costs (147,4) (86,5) 70,4
Share of equity accounted earnings of 15,3 17,2 (11,1)
joint ventures
Capital items 17,1 13,7
Profit before taxation 815,9 765,6 6,6
Taxation 276,7 265,8 4,1
Profit from continuing operations 539,2 499,8 7,9
DISCONTINUED OPERATIONS*
Revenue 428,8 445,5 (3,7)
Operating profit/(loss) before capital 4,6 (10,2) (145,1)
items
Finance costs (8,0) (10,0) (19,9)
Capital items (30,0) 0,2
Loss before taxation (33,4) (20,0) 67,0
Taxation (2,6) (9,9) (73,7)
Loss from discontinued operations (30,8) (10,1) 205,0
Profit for the year 508,4 489,7 3,8
Attributable to:
Equity holders of AVI 507,7 488,3 4,0
Minority interests 0,7 1,4 (50,8)
508,4 489,7 3,8
*Discontinued operations comprise the Argentinian hake and shrimp
operations conducted by Alpesca, a wholly owned subsidiary of I&J. In
June 2008 the AVI Board resolved to disinvest from this operation.
Basic earnings per share from 180,8 162,9 11,0
continuing operations(cents)#
Diluted earnings per share from 177,5 161,4 10,0
continuing operations (cents)##
Depreciation and amortisation of 187,4 166,7 12,4
property, plant and equipment and
intangible assets included in
operating profit from continuing
operations
Headline earnings per share from 174,7 159,0 9,9
continuing operations (cents)#
Diluted headline earnings per share 171,5 157,6 8,8
from continuing operations (cents)##
#Earnings and headline earnings per share is calculated on a weighted
average of 297 806 357 (30 June 2008: 306 081 992) ordinary shares in
issue.
##Diluted earnings and headline earnings per share is calculated on a
weighted average of 303 400 679 (30 June 2008: 308 840 457) ordinary
shares in issue.
PRELIMINARY SUMMARISED GROUP CASH FLOW STATEMENTS
Audited Audited Change
year year %
ended ended
30 June 30 June
2009 2008
Rm Rm
CONTINUING OPERATIONS
OPERATING ACTIVITIES
Cash generated by operations before 1 086,6 1 022,8 6,2
working capital changes
Decrease/(increase) in working capital 30,0 (354,7) (108,5)
Cash generated by operations 1 116,6 668,1 67,1
Interest paid (140,5) (91,0) 54,4
Taxation paid (392,9) (247,4) 58,8
Net cash available from operating 583,2 329,7 76,9
activities
INVESTING ACTIVITIES
Cash flow from investments 21,2 29,6 (28,4)
Property, plant and equipment acquired (257,8) (271,6) (5,1)
Proceeds from disposals 68,2 47,4 43,9
Disposal/(acquisition) of businesses 57,1 (37,8) (251,1)
and other investments
Net cash used in investing activities (111,3) (232,4) (52,1)
FINANCING ACTIVITIES
Capital returned to shareholders - (549,7)
Net increase in shareholder funding 9,0 4,7 91,5
Long term borrowings - net raised 191,1 308,8 (38,1)
(Decrease)/increase in short-term (14,1) 206,2 (106,8)
funding
Dividends paid (247,2) (233,4) 5,9
Net cash used in financing activities (61,2) (263,4) (76,8)
DISCONTINUED OPERATIONS*
Cash flows from operating activities 3,6 31,7 (88,6)
Cash flows used in investing (4,3) (11,0) (61,0)
activities
Cash flows (used in)/from financing (64,6) 2,1 (3 145,5)
activities
Cash flows from discontinued (65,3) 22,8 (386,5)
operations
Increase/(decrease) in cash and cash 345,4 (143,3) (341,0)
equivalents
Cash and cash equivalents at beginning 204,8 317,1 (35,4)
of the year
550,2 173,8
Translation of cash equivalents of (20,5) 31,0 (166,1)
foreign subsidiaries at beginning of
the year
Cash and cash equivalents at end of 529,7 204,8
the year
Attributable to:
Continuing operations** 516,6 174,9 195,4
Discontinued operations** 13,1 29,9 (56,2)
*Discontinued operations comprise the Argentinian hake and shrimp
operations conducted by Alpesca, a wholly owned subsidiary of I&J.
**Cash flows between continuing and discontinued operations are
eliminated on consolidation. These amounted to R48,5 million net cash
flow from continuing operations to discontinued operations in 2009.
PRELIMINARY SUMMARISED GROUP STATEMENTS OF CHANGES IN EQUITY
Share Treasury Reserves Retained
capital shares Rm earnings
and Rm Rm
premium
Rm
Year ended 30 June 2009
Balance at 1 July 2008 171,0 (719,8) 150,5 2 919,8
Recognised income and expense
Profit for the period 507,7
Foreign currency translation (79,4)
differences
Cash flow hedging reserve (54,2)
Transactions with shareholders
Share based payments 20,9
Dividends paid (247,2)
Disposal of minority interests
Own ordinary shares sold by AVI 9,3
Share Trusts (net)
Balance at 30 June 2009 171,0 (710,5) 37,8 3 180,3
Year ended 30 June 2008
Balance at 1 July 2007 428,2 (435,7) 23,2 2 667,4
Recognised income & expense
Profit for the year 488,3
Foreign currency translation 111,5
differences
Cash flow hedging reserve (0,4)
Transactions with shareholders
Share based payments 16,2
Dividends paid (232,9)
Payment out of share premium (257,0) 26,4
Own ordinary shares purchased by a (319,1)
subsidiary
Redemption of convertible (0,2)
redeemable preference shares
Own ordinary shares sold by AVI 8,6 (3,0)
Share Trusts (net)
Balance at 30 June 2008 171,0 (719,8) 150,5 2 919,8
PRELIMINARY SUMMARISED GROUP STATEMENTS OF CHANGES IN EQUITY (cont)
Premium Total Minority Total
on Rm interests equity
minority Rm Rm
equity
trans-
actions
Rm
Year ended 30 June 2009
Balance at 1 July 2008 (2,7) 2 518,8 (17,5) 2 501,3
Recognised income and expense
Profit for the period 507,7 0,7 508,4
Foreign currency translation (79,4) (79,4)
differences
Cash flow hedging reserve (54,2) (54,2)
Transactions with shareholders
Share based payments 20,9 20,9
Dividends paid (247,2) (247,2)
Disposal of minority interests - (6,5) (6,5)
Own ordinary shares sold by AVI 9,3 9,3
Share Trusts (net)
Balance at 30 June 2009 (2,7) 2 675,9 (23,3) 2 652,6
Year ended 30 June 2008
Balance at 1 July 2007 (2,7) 2 680,4 (18,4) 2 662,0
Recognised income & expense
Profit for the year 488,3 1,4 489,7
Foreign currency translation 111,5 111,5
differences
Cash flow hedging reserve (0,4) (0,4)
Transactions with shareholders
Share based payments 16,2 16,2
Dividends paid (232,9) (0,5) (233,4)
Payment out of share premium (230,6) (230,6)
Own ordinary shares purchased by a (319,1) (319,1)
subsidiary
Redemption of convertible (0,2) (0,2)
redeemable preference shares
Own ordinary shares sold by AVI 5,6 5,6
Share Trusts (net)
Balance at 30 June 2008 (2,7) 2 518,8 (17,5) 2 501,3
SUPPLEMENTARY NOTES TO THE PRELIMINARY SUMMARISED CONSOLIDATED FINANCIAL
STATEMENTS
AVI Limited ("AVI" or the "Company") is a South African registered
company. The preliminary summarised consolidated financial statements
of the Company comprise the Company and its subsidiaries (together
referred to as the "Group") and the Group`s interest in jointly
controlled entities.
1. Statement of compliance
The summarised consolidated financial statements have been
prepared in accordance with the recognition and measurement
criteria of International Financial Reporting Standards ("IFRS"),
its interpretations adopted by the International Accounting
Standards Board ("IASB"), the presentation and the disclosure
requirements of IAS 34 - Interim Financial Reporting, the
Listings Requirements of the JSE Limited (the "JSE") and the
requirements of the South African Companies Act.
2. Basis of preparation
The financial statements are prepared in millions of South
African Rand ("Rm") on the historical cost basis, except for:
- certain derivative financial instruments and biological assets
recognised at fair value;
- non-current assets and disposal groups held for sale stated at
the lower of carrying amount or fair value less costs to sell.
The accounting policies are those presented in the annual
financial statements for the year ended 30 June 2009 and have
been applied consistently to the periods presented in these
summarised consolidated financial statements and by all Group
entities.
3. Determination of headline earnings
Audited Audited Change
Year Year %
ended ended
30 June 30 June
2009 2008
Rm Rm
Profit for the year attributable to 507,7 488,3 4,0
equity holders of AVI
Total capital items included in (6,2) 12,0
earnings
Net surplus on disposal of 28,8 19,0
investments, properties, vessels and
plant and equipment
Net surplus on disposal of 23,8 -
subsidiaries
Impairment of plant, equipment and (5,2) (5,1)
vessels
Impairment of assets classified as (0,3) -
held-for-sale
Impairment of intangible assets and (30,0) -
goodwill
Impairment of disposal groups held- (30,0) -
for-sale
Taxation attributable to capital 6,7 (1,9)
items
Headline earnings 513,9 476,3 7,9
Attributable to:
Continuing operations 520,4 486,7 6,9
Discontinued operations (6,5) (10,4)
513,9 476,3 7,9
Headline earnings per ordinary share 172,6 155,6 10,9
(cents)
Continuing operations (cents) 174,7 159,0 9,9
Discontinued operations (cents) (2,1) (3,4) (38,2)
Diluted headline earnings per 169,4 154,2 9,9
ordinary share (cents)
Continuing operations (cents) 171,5 157,6 8,8
Discontinued operations (cents) (2,1) (3,4) (38,2)
4. Investment activity
There were no significant changes to investments in the current
year.
Effective 12 December 2008, National Brands Limited disposed of a
non-core subsidiary that packed private label teas and coffees
for R35,2 million (net of cash disposed of).
5. Commitments
Year Year
ended ended
30 June 30 June
2009 2008
Rm Rm
Capital expenditure commitments for property, 88,7 127,7
plant and equipment
Contracted for 52,2 79,3
Authorised but not contracted for 36,5 48,4
It is anticipated that this expenditure will be financed by cash
resources, cash generated from activities and existing borrowing
facilities. Other contractual commitments have been entered into
in the normal course of business.
6. Contingent liabilities
As previously reported, a foreign subsidiary of the Group has
since 2004 been involved in a dispute with the South African
Revenue Service ("SARS"). The matters under dispute were complex
and it was anticipated at that time that the legal process
embarked on would take an extended period to complete.
On 30 March 2009 the foreign subsidiary and SARS reached
agreement in terms of which an amount of R34 million was paid to
SARS in full and final settlement of the dispute. After taking
account of existing provisions related to this dispute, the
settlement did not have any material effect on profit for the
year ended 30 June 2009.
7. Post-balance sheet events
No significant events outside the ordinary course of business
have occurred since the balance sheet date.
8. Dividend declaration
Notice is hereby given that a final ordinary dividend No 70 of 52
cents per share for the year ended 30 June 2009 has been declared
payable to shareholders of ordinary shares. The salient dates
relating to the payment of the dividend are as follows:
Last day to trade cum dividend
on the JSE Friday, 25 September 2009
First trading day ex dividend
on the JSE Monday, 28 September 2009
Record date Friday, 2 October 2009
Payment date Monday, 5 October 2009
In accordance with the requirements of Strate Limited, no share
certificates may be dematerialised or rematerialised between
Monday, 28 September 2009 and Friday, 2 October 2009, both days
inclusive.
Dividends in respect of certificated shareholders will be
transferred electronically to shareholders` bank accounts on
payment date. In the absence of specific mandates, dividend
cheques will be posted to shareholders. Shareholders who hold
dematerialised shares will have their accounts at their Central
Securities Depository Participant ("CSDP") or broker credited on
Monday, 5 October 2009.
9. Reports of the independent auditors
The unmodified audit reports of KPMG Inc., the independent
auditors, on the annual financial statements and the summarised
financial statements contained herein for the year ended 30 June
2009, dated 4 September 2009, are available for inspection at the
registered office of the company.
10. Annual report
The annual report for the year ended 30 June 2009 will be posted
to shareholders on or about Friday, 25 September 2009. The
financial statements will include the notice of the annual
general meeting of shareholders to be convened on Wednesday, 21
October 2009.
Angus Band Simon Crutchley
Chairman CEO
4 September 2009
Directors: AWB Band * (Chairman), SL Crutchley (Chief Executive Officer), MH
Buthelezi*, OP Cressey, ,JR Hersov*, SD Jagoe*, RS Katzen, KE Macilwaine*, NT
Moholi*, A Nuhn*, GR Tipper*
Dutch British * Non Executive
Company Secretary : VA Crystal
Registered office: 2 Harries Road, Illovo, Johannesburg 2196, South Africa
Postal address: PO Box 1897, Saxonwold 2132, South Africa, Telephone: +27 11 502
1300, Telefax: +27 11 502 1301
e-mail: info@avi.co.za Website: www.avi.co.za
Sponsor: Standard Bank
Date: 07/09/2009 07:17:01 Produced by the JSE SENS Department.
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