AVI trading statement


AVI, the brands business that sells well known household good such as Bakers biscuits, Five Roses, Freshpak (you Rooibos drinkers, you!), Provita, I&J (Feeesh) and distributor of the likes of Carvela, Lacoste and Kurt Geiger shoes through their Spitz stores , released a trading update yesterday. This is for their 6 months to end December. It looks OK at face value, the reason for the share prices of them, and their peer grouping, Tiger Brands and Pioneer Foods sinking over the last six months can be attributed to several things. The weakening Rand and crippling drought means that input prices are going to rise, whether or not these companies can pass it onto their customers remains to be seen. I guess not all of it.


AVI trading statement


AVI stuck out a trading update this morning. All divisions did pretty well, other than their smallest, the personal care division, as per the release: "revenue declined following the revision of trading terms with Coty". Sales for the six months to end December topped 6 billion Rand, an increase of 11.1 percent. Consolidated headline earnings per share is expected to show an increase of between 8 to 11 percent, 249 to 256 cents per share for the six months. AVI results are expected on the 9th of March. The stock is down over one and one quarter of a percent, relative to a market which is marginally higher.


Diversity paying off


This morning we received interim results from AVI for the 6 months ended 31 December. I must say I really like this business but it has struggled of late share price wise thanks to a weaker Rand and along with that a weaker consumer. The share price is back to where it was in July of 2012 after absolutely flying since 2009. Before we delve into the numbers lets just remind ourselves of their brands portfolio.


AVI, shoes trump fish


This morning we received 6 month results for the period ending December 2012 form AVI. The table below tells a thousand words, explaining segmental revenue, profits and which businesses are growing and which businesses are slowing.


AVI results, the luxury part is driving the business


We had some good looking 6 month numbers from AVI, a company you have grown to expect performance. If you are unaware here is how they describe themselves and their strategy. "AVI's extensive brand portfolio includes more than 53 brands; 33 owned brands and over 20 international brands under license. Single-mindedly focussed on their growth and development, our brands span a range of hot and cold beverages, sweet and savoury snacks, fresh and convenience foods, out of home ranges, cosmetics, shoes and accessories, and apparel.".


Good trading update


Staying with retail, this more the tea and biscuits (and shoes) kind, AVI released a trading update that the market enjoyed. This was for the six months to end December 2011. Results are expected on the 12 of March, but we got a pretty good idea of exactly what they are going to be. EPS for total operations is expected to be as much as 38.2 percent higher than the prior reporting period. 200.8 cents per share. There are around 2 percent fewer shares in issue as a result of continued buy backs. Versus their peer group, AVI are neither expensive nor are they dirt cheap. Investors yesterday were surprised with the trading update, the stock was bought up 3.75 percent by the close, to an all time high. The first half is traditionally much, much better than the second half. The distributions are generous. I have always had a soft spot for this company.


AVI full year numbers, they look good.


AVI Limited (which used to be one of my favourites) reported full year numbers to end of June 2011. How does this company differentiate themselves from the others in the sector? The way that they have positioned themselves is as a "branded goods" company. In fact their website says as much: "Single-mindedly focussed on their growth and development, our brands span a range of hot and cold beverages, sweet and savoury snacks, fresh and convenience foods, out of home ranges, cosmetics, shoes and accessories, and apparel." You would know favourites like Five Roses, Ellis Brown, Frisco, Bakers Biscuits, Willards and then some other high end fashion brands, like Jimmy Choo and Kurt Geiger.


AVI results for their half year to December


AVI released 6 month interim results this morning which looked impressive. The Score Sheet. Headline earnings per share from continuing operations came in at 152 cents, up 36% from last year. The company which focuses on the manufacturing, marketing and processing of branded consumer products such as food, beverages, footwear and cosmetics managed to increase operating profit by 30% to R695m. It?s South Africa?s third largest food manufacturer by revenue bringing in R4.32bn for the year growing 6.8%. The share trades at R30 so annualise 152c and you get a forward P/E of 10. Nice to see companies really growing their earnings into their well performing share prices (the stock traded at R12 in July 08). The interim dividend was increased 28% to 50c a share plus a special payment of 75 cents made in November last year.


AVI reported numbers this morning


AVI reported numbers this morning. This company used to be a recommended stock over here. Nothing sinister for dropping them off the list, rather size and scale. I remember a client once telling me that when he bought a company like this, he did it because folks would always have tea and biscuits. Sales of 7.6 billion Rands, that was slightly higher than last year, profits lower for the full year at 471 million Rands.


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