South Africa’s second-largest food company, AVI, posted a 19% jump in profits from continuing operations during its first half, as it reaped the benefit from price rises.
Go deeper with GlobalData
Net income rose to ZAR3.62bn (US$34.2m) in the six months ended 31 December, up from ZAR3.03bn in the comparable period of last year, the company said.
Headline earnings per share rose 12% to 103 cents for the first half, at the top end of its forecast of 5-15% growth.
Revenue from continuing operations was up 18% year-on-year to ZAR4bn.
However, AVI warned that the South African trading environment had taken a turn for the worse, with January and February sales falling short of the company’s forecast after retailers reduced inventory more aggressively than expected.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“Household disposable income is likely to remain constrained by relatively high interest rates and reduced access to credit,” the company said.
Demand in the second-half is likely to be “dampened” because of global economic uncertainty, AVI warned.
However, the company declined to provide a specific forecast for the second half of its fiscal year.
