Food producer AVI sees tough times ahead
Company expects low consumer spending to persist for the remainder of its financial year
There is no end in sight to the prevailing constrained consumer spending environment which hit AVI’s footwear and apparel business in the six months to end-December 2018, says CEO Simon Crutchley. As a result of the constrained economic environment, Spitz and Green Cross experienced lower volumes. In the case of Spitz, which sells premium footwear brands, the decline was in sharp contrast to record sales in the six months to December 2017. Commenting on the company’s interim results, Crutchley said the group expected the subdued economic conditions to persist. “The trading environment is expected to remain difficult with constrained consumer spending. Our expectation is that many of our categories will continue to have low, or even negative, growth rates until there is a meaningful improvement in the economy,” he said. In the face of a changing macroeconomic environment, the company continually reviewed its business model, he said. Its focus was on margin management, procurement, co...
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