Take some food along
Consumer demand could make AVI, Pioneer and Astral appetising, writes Stafford Thomas
People have to eat, whether times are good or bad, and it may seem that this makes food producers a generally resilient group. But the reality is very different. The past two years has been a tumultuous period for many sector players. The likes of Pioneer Food Group, Tiger Brands, Astral Foods and Rhodes Food Group displayed big profit and share price gyrations, both negative and positive. The standout exception is AVI, which has just turned in an 8.7% increase in operating profit for the six months to December. Measured at the interim stage it brought AVI’s average operating profit growth since 2005 to 16.7%. Praising AVI, Warren Jervis of Old Mutual Investment Group says: "When you look at AVI’s profit performance it is a straight line, rising consistently. It is the type of growth reliability you want in a share." Driven by consistent profit growth, AVI’s share price performance has been just as impressive. Over the past 10 years the price rose at an annual average of 22.7%, goin...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.