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AVI Limited posted a 1.4% rise in revenue to R16.24bn and a 5.5% jump in profit for the year to end-June, declaring a 5.9% higher total dividend of 663c plus a 300c special dividend despite weaker consumer demand, higher fuel prices and a difficult second half.
AVI Limited, the South Africa n consumer goods group that owns well-known brands such as Five Roses tea, Salticrax snacks and Big Korn Bites, delivered a resilient set of full-year results for the period ending June, posting higher earnings, improving margins and rewarding shareholders with both an increased ordinary dividend and a special payout despite a tough trading environment.
Group revenue rose 1.4% to R16.24 billion, while profit for the year climbed 5.5% to R2.56 billion. Headline earnings per share increased 5.3% to 767.9 cents. Strong cash generation allowed the company to reduce net debt, declare a final ordinary dividend of 418 cents per share, bringing the total ordinary dividend to 663 cents, up 5.9% on the prior year.
In addition, the board approved a special dividend of 300 cents per share, reflecting confidence in the group's balance sheet despite consumer pressure across most product categories. Management attributed the first-half performance to selling price increases, volume growth in several categories and disciplined margin management, supported by cost-efficiency initiatives introduced the previous year. The second half was markedly weaker as consumer demand softened amid materially higher fuel prices, sustained high interest rates and a more competitive landscape.
The group noted that sales in the final quarter were substantially impacted by lower demand from distributors and wholesale customers who postponed purchases ahead of national protest action scheduled for June 30. Revenue trends differed across the portfolio. The I&J seafood unit delivered the strongest growth, supported by improved selling prices and incremental capacity from an additional freezer vessel, which boosted export hake fillet sales volumes, although this was partly offset by lower abalone revenue in key export markets.
The Snackworks division also generated higher revenue, which partially compensated for weaker sales within Entyce Beverages. Elsewhere, Indigo Brands' personal care revenue declined 5.1%, driven mainly by weaker demand in the core deodorant body spray category, while the footwear and apparel cluster recorded revenue growth of 2.1% on improved full-year footwear volumes. Looking ahead, AVI warned that the operating environment remains uncertain both domestically and internationally, with global geopolitical developments expected to keep interest rates, inflation and fuel prices elevated.
Domestically, weak economic growth and persistently high unemployment are expected to continue weighing on disposable incomes. From July, the group implemented a revised operating structure for its Entyce and Snackworks businesses, appointing dedicated management teams to strengthen competitiveness. Management stated that the business will remain focused on growing revenue while balancing price, volume and margin decisions across all brands, and remains well positioned to benefit significantly from any future economic recovery in South Africa
AVI Limited Five Roses Salticrax I&J Indigo Brands Snackworks Entyce Beverages South Africa Consumer Goods Dividends Earnings Full-Year Results Trading Environment Fuel Prices Interest Rates
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