Improved sales and profits from AVI’s food operations have helped the South African conglomerate AVI increase its annual earnings.
AVI, which sells clothing and footwear alongside food brands like I&J frozen seafood and Bakers biscuits, today (5 September) reported that its annual earnings were up 31% in the year to the end of June.
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Diluted headline earnings per share from continuing operations increased 31.1% to ZAR2.40. On a reported basis, which includes earnings per share from fish unit Alpesca and mushroom arm Denny, which AVI agreed to sell in the last four months, diluted earnings per share climbed 36% to ZAR2.41.
Operating profit from AVI’s food and beverage division was up 17.5% at ZAR763.3m. Revenue increased 2.8% to ZAR5.84bn.
“In the food and beverage portfolio most of our brands performed well in a competitive environment where consumer spending was relatively constrained,” AVI said.
AVI said biscuits volumes fell due to an increase in selling prices and product rationalisation. The company said volumes from its I&J seafood arm were “in line” with a year earlier “with higher quota volumes offset by a reduction in purchased raw material”.
The company’s total operating profit climbed 25.4% to ZAR1.12bn, with revenue up 5.7% to ZAR7.69bn.
