TRADING UPDATE
Market backs AVI on solid interim outlook
Fast-moving consumer goods group AVI expects its headline earnings per share for the six months to end-December to have grown by up to 9% despite difficult trading conditions. Its share price increased nearly 3% to R94.82 on Tuesday morning following a trading update, which market commentators described as surprisingly strong. AVI said it expected to report on March 6 that revenue grew 11.6%. Despite the drought pushing up grain prices, AVI said its food brands Entyce and Snackworks managed to grow operating profit. Fishing subsidiary I&J grew revenue, benefiting from exchange rates and improved fishing conditions. But this was constrained by a three-week strike in August. Fashion brand Spitz experienced growth in both revenue and operating profit. Earnings per share were diluted by an increase in the number of shares in issue for incentive schemes. AVI is a company made up of more than 50 consumer goods brands in a range of categories including hot beverages, snacks, frozen foods, ...
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