JSE-listed food and beverages company AVI posted a 4.4 percent decline in headline earnings for the year to end June. File Photo: IOL

DURBAN – JSE-listed food and beverages company AVI posted a 4.4 percent decline in headline earnings for the year to end June, with consumer spending still under pressure due to a sluggish economy.

AVI, with a portfolio of more than 50 brands, which includes Five Roses, Bakers, Freshpak and House of Coffees, saw headline earnings declined to R1.7 billion, down from last year’s R1.77bn. 

However, the group said it  had recovered from a difficult first semester with growth in the second half of the year compared to the second half of last year. 

“Although not sufficient to offset the first half decline, it is encouraging to see the resilience of the business in tough times and to commence the next financial year from a sound operating base,” the group said. 

Group revenue was marginally up by 1.2 percent to R13.60bn on a like-for-like basis, while headline earnings per share declined by 4.9 percent to 516.6 cents a share.

The group declared a dividend of 250c a share, bringing the total dividend to 415c.

In the Entyce Beverages division, revenue increased by 3.8 percent to R3.98bn while operating profit increased 5.5 percent to R835.8 million. 

Green Cross reported the biggest decline in revenue, down by 19.4  percent, largely due to lower sales volumes. 

“Sales volumes were impacted by soft demand and widespread discounting in the mid-price comfort footwear segment, exacerbated by poor performance of the summer and winter ranges in retail doors,” the group said.

BUSINESS REPORT