AVI's financial outlook: Headline earnings per share to rise despite revenue challenges

FAST moving consumer goods and food manufacturer AVI said headline earnings per share were expected to increase between 5% and 7% for the year to June 30, off the back of only a 1% increase in group revenue.

- EDWARD WEST

The headline earnings per share forecast of between 721.5 and 735.2 cents would be higher than last year's 687.1 cents, when the final results were expected to be released on September 8, the group directors said in a tradong statement on Friday.

They said the results were achieved despite a very challenging consumer trading environment, with "anaemic demand" in many of the group’s key categories. The directors said the 6.4% increase in second semester operating profit was a good result considering the very high growth figure that was reported for the same time last year.

Food & Beverage revenue increased 3% to R13.48 billion, Entyce Beverages revenue was up 5.4% to R5.3 bn, the Snackworks segment revenue increased 0.2% to R5.61bn, fishing product group I&J’s revenue increased 4.4% to R2.57bn, Fashion Brands’ revenue fell 8.5% to R2.54bn, Personal Care fell 9.6% to R924.3 million, while revenue in the Footwear & Apparel operations fell 7.9% to R1.62bn.