| Wed 22 Jun 2011, 15:20 | | AVI - AVI Limited - Trading update and statement for the year ending 30 June |
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AVI
AVI
AVI - AVI Limited - Trading update and statement for the year ending 30 June
2011
AVI Limited
(Registration number 1944/017201/06)
Share code: AVI
ISIN: ZAE000049433
("AVI" or "the Group")
TRADING UPDATE AND STATEMENT FOR THE YEAR ENDING 30 JUNE 2011
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
2011
Revenue 2011 2010 Change
Rm Rm %
Entyce beverages* 2 065 1 984 4,1
Snackworks 1 953 1 906 2,5
Chilled & frozen 1 585 1 543 2,7
convenience brands**
Fashion brands - personal 821 741 10,8
care
Fashion brands - footwear & 893 728 22,7
apparel
Corporate 6 6
GROUP 7 323 6 908 6,0
* = includes Out Of Home comprising Ciro and Sir Juice (Sir Juice was
sold in November 2010)
** = excludes Alpesca
Group revenue for the eleven months to May 2011 was 6,0% higher than last year.
Most business units achieved higher sales volumes despite constrained consumer
spending with the fashion brands portfolio performing particularly well. The
consolidated gross profit margin for the period was higher than last year
despite some pressure in the fourth quarter from high raw material costs. I&J
has delivered higher profits in the second semester, enjoying higher volumes in
line with increased quota as well as better exchange rates and export prices
than in the second half of last year.
The higher sales volumes and improved gross profit margin have resulted in
strong growth in operating profit and a further improvement in the operating
profit margin.
The Australian Simplot Joint Venture has performed in line with last year and
net finance charges continue to track well below last year due to lower debt
levels and lower interest rates.
EXPECTED RESULTS FOR CONTINUING OPERATIONS
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 2011 are expected to increase by
between 23% and 33% over the headline earnings per share for the year ended
30 June 2010;
* Consolidated earnings per share for the continuing operations of the Group
for the year ending 30 June 2011, including net capital losses on the
disposal of assets, are expected to reflect an increase of between 23% and
33% over the comparative figure for the year ended 30 June 2010.
DISCONTINUED OPERATIONS - ALPESCA
I&J sold its shares in Alpesca to an Argentinean consortium during May 2011 for
a consideration of USD10 million plus transfer of loan guarantees of USD4
million. Consequently the group results for the year ending 30 June 2011 will
include a capital loss on disposal of approximately R40 million. An impairment
of R76,5 million was raised in the prior year.
Alpesca`s losses for the ten months to the end of April 2011 will be included in
AVI`s consolidated results. These losses are expected to be lower than those
recorded for the 2010 financial year.
EXPECTED RESULTS FOR TOTAL OPERATIONS
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 total operations of the
Group for the year ending 30 June 2011 are expected to increase by between
28% and 38% over the headline earnings per share for the year ended 30 June
2010;
* Consolidated earnings per share for the total operations of the Group for
the year ending 30 June 2011, including net capital losses on the disposal
of assets, are expected to reflect an increase of between 38% and 48% over
the earnings per share for the year ended 30 June 2010.
It is expected that AVI will release its final results for the year ending 30
June 2011 on the 5th September 2011.
The information above has not been reviewed and reported on by the Group`s
auditors.
Illovo
22 June 2011
Sponsor Standard Bank
Enquiries +(27) 11 502 1300
Date: 22/06/2011 15:20:01 Produced by the JSE SENS Department.
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