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AVI Limited - Trading Update & Statement For The Six Months Ending 31 December
2005
AVI Limited
(Registration number 1944/017201/06)
Share code: AVI
ISIN: ZAE000049433
("AVI" or "the Group")
TRADING UPDATE & STATEMENT FOR THE SIX MONTHS ENDING 31 DECEMBER 2005
AVI will be entering a "closed period" on 15 December 2005 ahead of the release
of its interim results for the six months ending 31 December 2005. The following
update is based on the latest available trading information and covers
performance for the Group"s continuing operations.
Segmental turnover for continuing operations for the five months ended 30
November 2005
Turnover 2005 2004 Change
Rm Rm %
Food brands 2 001 1 866 7,2
Semi-durable brands 373 223 67.3
Corporate/other 12 0
Continuing operations 2 386 2 089 14,2
Despite a generally deflationary environment, group sales improved over the
prior period by 14,2%. On a like-for-like basis, excluding the turnover of A&D
Spitz (Pty) Limited ("Spitz") which was acquired in July 2005, the growth in
group sales was 7,1%. Improvements in turnover were achieved in all the material
brands of the Group and in particular, National Brands Limited and Spitz have
performed above expectations.
The board of directors ("the board") of AVI has determined that it would be
appropriate to provide relevant information on the results of the continuing
operations of the Group in addition to the guidance required in terms of the
Listings Requirements of the JSE.
As reported at the AGM on 19 October 2005, the Group"s fishing operations
performed below expectations in the first three months of this financial year.
The performance of I&J has not improved largely due to:
- Continued low catch rates and the prevalence of small fish in
the South African hake fishery. This has materially increased
the per kilogram cost of landed fish and limited the sale of
premium margin products into key export markets.
- A labour dispute in September at the Alpesca fish processing
facility in Argentina which constrained production for six
weeks affecting both cost recoveries and the sales of value-
added products. Whilst this dispute was resolved to the long-
term benefit of the company, the short-term impact on
operational performance was not anticipated.
Consequently, the board advises shareholders that, if the trading and fishing
conditions experienced over the past five months continue in December:
- Consolidated earnings per share for the continuing operations
of the Group for the six months ending 31 December 2005 are
expected to reflect an improvement of between 10% and 20% over
the earnings for the six months ending December 2004*; before
taking the gain on disposal of Vector Logistics (Pty) Limited
into account;
- Consolidated headline earnings per share for the continuing
operations of the Group for the six months ending 31 December
2005 are expected to increase by between 10% and 20% above the
headline earnings per share for the same period in the prior
year *.
* Earnings and headline earnings for the six months ending December 2004 have
been restated in line with disclosures adopted for the 2005 financial year -
namely to report the I&J pelagic operation as discontinued, and to reflect 100%
of I&J"s earnings (previously minority interests were excluded). As a result of
this restatement earnings per share for the six months ending December 2004 are
now stated at 50,7 cents per share and headline earnings per share are now
stated at 51,1 cents per share.
It is expected that AVI will release its interim results for the six months
ending 31 December 2005 on 13 March 2006.
The information above has not been reviewed and reported on by the Group
auditors.
Chislehurston
Sandton
9 December 2005
Sponsor
Standard Bank
Enquiries
Simon Crutchley Tel: +(27) 11 779 2708
Chief executive officer
Sam Denoon-Stevens Tel: +(27) 11 779 2721
Investor relations officer
Date: 09/12/2005 11:00:37 AM Produced by the JSE SENS Department
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