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AVI
AVI
AVI Limited - Trading Update and Trading Statement
AVI Limited
(Registration number 1944/017201/06)
Share code: AVI
ISIN: ZAE000049433
("AVI" or "the Group")
TRADING UPDATE FOR THE ELEVEN MONTHS ENDED 31 MAY 2006 AND TRADING STATEMENT FOR
THE YEAR ENDING 30 JUNE 2006
AVI will be entering its "closed period" on 19 June 2006 ahead of the release of
its results for the twelve months ending 30 June 2006. 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
2006
Revenue 2006 2005 Change
Rm Rm %
Food brands 4 180 3 958 5,6
Semi-durable brands 817 433 88,7
Corporate/Other 28 12
Continuing operations 5 025 4 403 14,1
Group sales have improved by 14,1% compared to the prior comparable period. On
a like-for-like basis, excluding the revenue from A&D Spitz, revenue increased
by 5,9% due in the main to solid volume growth from National Brands, price
increases at Irvin & Johnson (I&J) and an improved performance from Indigo
Cosmetics relative to the same period in the prior year.
The board of directors of AVI ("the board") has resolved that it would be
appropriate to provide relevant information on the operating results of the
Group"s continuing operations in addition to the guidance required in terms of
the Listings Requirements of the JSE.
Irvin & Johnson (I&J)
In the commentary on the Group"s interim results, released on 13 March 2006, it
was reported that I&J"s results for January and February 2006 were materially
lower than in the same months of the prior year due to lower catch rates in the
South African fishery and higher energy costs. The high fuel price and poor
catch rates have persisted for the remainder of the second half resulting in
substantially increased costs of landing fish and a concomitant erosion of
margins in the South African operation. In addition, the opening of the
Argentinean shrimp fishery was delayed resulting in loss of revenue from
Alpesca. Consequently I&J is expected to report a break-even operating profit
for the full financial year.
The Real Beverage Company (RBC)
RBC posted an operating loss of R9 million in the first half of the year as a
result of changes to the branding and distribution strategies which reduced
revenues and increased distribution costs. During the second half of the year
positive steps have been taken to address these areas which, while laying the
foundation for improved performance in the next financial year, have resulted in
a significant number of non-recurring expenses. Consequently, RBC is expected to
show an operating loss for the second half of the 2006 financial year in line
with that of the first half.
The impact of the substantial decline in I&J"s performance over the prior period
and to a lesser extent that of RBC are expected to be largely offset by A&D
Spitz and growth from National Brands and Indigo Cosmetics. Consequently, the
board advises shareholders that consolidated headline earnings per share for the
continuing operations of the Group for the twelve months ending 30 June 2006 are
expected to be between 0% and 5% lower than the 108,2 cents per share achieved
in the prior year.
It is expected that AVI will release its audited results for the twelve months
ending 30 June 2006 on 11 September 2006.
The information above has not been reviewed and reported on by the Group
auditors.
Chislehurston
Sandton
12 June 2006
Sponsor
Standard Bank
Enquiries
Simon Crutchley Tel: +(27) 11 779 2708
Chief executive officer
Owen Cressey Tel: +(27) 11 779 2704
Chief financial officer
Date: 12/06/2006 11:39:07 AM Produced by the JSE SENS Department
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