AVI LIMITED
Registration number 1944/017201/06
Share code: AVI
ISIN: ZAE000049433
(“AVI” or “the Company” or “the Group”)

TRADING STATEMENT AND UPDATE FOR THE SIX MONTHS ENDED 31 DECEMBER 2023

The group delivered           a   satisfactory      performance          in   a   tough   trading
environment.

Our businesses were challenged by the ongoing inefficiency of SA’s ports
impacting supply chains and the continued load-shedding across most of our
sites with the associated costs in line with last year.

Segmental revenue for the six months ended 31 December 2023
                                                     2023        2022                %
                                                       Rm          Rm         Change
 Food & Beverage Brands                           6 674,7      6 127,4            8,9
 Entyce Beverages                                 2 420,2     2 086,6            16,0
 Snackworks                                        3 101,1    2 824,9             9,8
 I&J                                               1 153,4     1 215,9           (5,1)
 Fashion brands                                   1 703,4     1 695,5             0,5
 Personal Care*                                     539,3        610,5          (11,7)
 Footwear & Apparel                                1 164,1    1 085,0              7,3

 Group                                           8 378,1      7 822,9              7,1


*COTY revenue loss from July 2023.


Entyce Beverages did not fully recover input cost pressures, but increased
sales volumes in key categories and improved factory efficiencies protected
margins and supported sound operating profit growth. Snackworks recovered
material input cost pressure, and this combined with factory efficiencies
and cost control improved gross margins, resulting in sound operating profit
growth for both the biscuit and snacking categories. Indigo brands improved
operating profit with growth in the aerosol, fragrance, and roll-on
categories despite the loss of the Coty business from July 2023. SPITZ’s
footwear and apparel business had a strong December with good demand for
core brands, albeit stronger for footwear than clothing. SPITZ’s semester
performance was characterised by constrained demand especially for apparel
with the semester’s operating profit only marginally ahead of the prior
year.

I&J had a difficult semester. Fish sales volumes declined by 17,1% due to
poor catch rates, aggressive competition both internationally and
domestically as well as the loss of December’s export sales due to
inefficiencies at Cape Town’s port. Cape Town’s taxi strike impacted I&J’s
production facilities significantly with the loss of production impacting
cost recoveries. A non-cash cost of R14,9 million was recognized in respect
of the new BBBEE structure implemented effective July 2023. I&J’s operating
profit was materially lower than the prior year.

Net finance costs increased in line with higher interest rates partly offset
by lower debt levels, which remain within our target range. The effective
tax rate is largely in line with the corporate tax rate of 27%.
CAPITAL GAINS
There were no material capital items in the current financial period.


CONSOLIDATED HEADLINE AND ATTRIBUTABLE EARNINGS
The weighted average number of shares in issue is expected to be marginally
higher than last year due to the issue of new shares in terms of the
Group’s various share incentive schemes.

We hereby advise shareholders, in accordance with Section 3.4 (b) of the
Listings Requirements of the JSE Limited, that:

   ▪   Consolidated headline earnings per share for the six months ended
       31 December 2023 are expected to increase by between 16,0% and 18,0%
       over the prior year, translating into an increase from last year’s
       318,9 cents to a range of between 369,9 and 376,3 cents per share;
       and

   ▪   Consolidated earnings per share for the six months ended 31 December
       2023, including capital gains and losses, are expected to increase
       by between 16,0% and 18,0% over the prior year, translating into an
       increase from last year’s 318,4 cents to a range of between 369,3
       and 375,7 cents per share.


It is expected that AVI will release its f u l l results for t h e             six
m o n t h s e n d e d 3 1 D e c e m b e r 2 0 2 3 o n or about 4 March 2024.


The information above has not been reviewed and reported on by the Group’s
external auditors.


Illovo
23 January 2024

Sponsor
The Standard Bank of South Africa Limited