South Africa’s AVI Limited Group reports 24% rise in annual profit

South Africa’s AVI reported a 24.1% rise in full-year profit on Monday as the food producer and fashion retailer lifted prices to offset the impact of rising input costs.

The group posted its headline earnings per share – the country’s main profit measure – of 687.1 cents for the full year ended June 30.

“We have seen improvements in most key performance indicators,” said the company, adding that gross margins recovered to pre-COVID levels.

The owner of brands such as Five Roses tea and Bakers biscuits said its revenue increased by 6.3% to 15.86 billion rand ($887 million). Group operating profit rose by 21.7% to 3.3 billion rand, boosted by improved sales volumes and higher selling prices in its tea and coffee, snacks, and fashion businesses.

Meanwhile, its I&J and personal care businesses were dealt a blow as the frozen fish business I&J experienced poor catch rates and constrained abalone markets, while the personal care unit suffered as consumers curbed spending.

It declared a final dividend of 388 cents and a gross special dividend of 280 cents per share.

Reuters

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