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.

The commentary part is interesting, the fashion brands, shoes, has been strong, the food and beverage portfolio have performed well in a competitive environment. Their words, not mine. So, shoes before eating, which makes sense, because eating is cheating. Group revenue grew nearly 6 percent to 7.69 billion ZAR, headline earnings rose to 750.8 million ZAR an increase of 32.3 percent. Reason for that as the company points out is because of "higher operating profit and lower net finance costs." HEPS from continuing operations is 248.2 cents per share with a final dividend for the year of 75 cents, bringing the total to 125 cents. The stock trades at 32.75 ZAR a share. So, you could say, neither cheap, nor expensive.

In the discontinued operations the Alpesca and Denny operations basically add nothing, so there is no impact in the overall number. Both businesses have been sold, or are in the process of being sold. The outlook segment reveals something that I have not seen for a while, the group has engaged in hedging, check it out: "the Group has a material level of forward exchange cover in place to protect the cost of imports and commodity costs have started to soften, both of which will allow more leeway to manage the balance between price, volume and profitability with the flexibility that constrained trading environments require." Phew, you can either get it completely right, or completely wrong.

The group plans to continue to focus on costs as the consumer is expected to fumble around in the dark as the economy chugs uphill. But AVI will continue to look for opportunities, both locally and regionally, the surrounds. I like the business as a whole, a good management team delivering time after time. There is very little exciting, but perhaps that is what you are looking for if you are investing in this company. If you own them, continue to do so.