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AVI well positioned to weather difficult times
Consumer goods group AVI affirms that it is confident that it is "well positioned" to weather the difficult trading environment over the second half of its financial year, after delivering a "strong" interim set of financial results.
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On a sobering note, the group said it expected the current constrained consumer demand environment to persist.
Reporting results for the six months to December 2014, AVI on Monday reported a 9.7% drop in headline earnings per share to 252.9 cents from 230.6 cents.
Revenue was up 11% to R6,00 billion and operating profit increased 13% to R1.15 billion.
Interim dividend ticked up 10% to 132 cents. AVI also approved a apecial dividend of 200 cents.
AVI said its results reflected "strong overall performance in a period of increasing pressure on consumer spending and rising input costs stemming largely from the weaker rand".
"The weaker rand will put additional pressure on input costs and selling prices will need to be adjusted during the second half of the year, with due cognisance of the impact that this could have on demand," the company said.
"Notwithstanding expectations of a difficult trading environment we remain confident that our unique brand portfolio can continue to deliver growth in key categories. This will be supported by ongoing improvements in manufacturing capability and procurement activity," AVI said.
AVI said it was well positioned to weather a difficult trading environment, while continuing to pursue growth opportunities from the current brand portfolio and remaining vigilant for brand acquisition opportunities, both domestically and regionally.
Source: I-Net Bridge
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