The retail portfolio was a standout performer as it lifted revenue 17.4%, boosted by price increases and December sales
Consumer goods group AVI said on Monday it spent R22m to fend off rolling blackouts in the six months to end-December, adding to cost pressure that could not be recovered through increases in selling prices.
AVI owns an assortment of food brands including Five Roses Tea, and it also owns footwear retailer Spitz stores as well as seafood company I&J. Load-shedding negatively affected its manufacturing, distribution and retail operations, it said in a statement, adding that the energy crisis also affected its supply chains and distribution logistics.
AVI and other food manufacturers were already grappling with high input costs stemming from higher soft commodity prices, though they have since come off their highs, as well as high fuel prices and a weaker rand. All these came at the time when the cost-of-living crisis was in full swing while competition was rife with cheaper private labels increasingly making inroads on the supermarket shelves.Revenue growth in the Entyce and Snackworks division was driven by price increases to offset input cost pressures. I&J’s revenue declined 2.3% with lower catch rates and the re-emergence of lockdowns in China and Hong Kong affecting the abalone sales mix.
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