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 2024

Segmental revenue for the six months ended 31 December 2024
                                                      2024       2023           %
                                                       Rm          Rm    Change
 Food & Beverage                                  6 884,6     6 674,7         3,1
 Entyce Beverages                                  2 616,5    2 420,2         8,1
 Snackworks                                       3 069,9      3 101,1      (1,0)
 I&J                                               1 198,2     1 153,4        3,9
 Fashion brands                                    1 586,3    1 703,4      (6,9)
 Personal Care*                                      506,6      539,3       (6,1)
 Footwear & Apparel                                1 079,7     1 164,1     (7,3)

 Group                                           8 470,9      8 378,1         1,1




Group revenue increased by 1.1% over the same period last year. Revenue
growth in Entyce was underpinned by price increases required to ameliorate
significant input cost pressures. Snackworks revenue ended 1% lower off a
strong prior year base. I&J’s revenue grew 3,9% with the benefit of selling
price increases in the fishing business and a weaker exchange rate partially
offset by lower fish sales volumes driven by a poorer catch mix and catch
performance. The abalone category was impacted by lower selling prices and
weaker demand in key Asian markets. Personal care revenue declined with
growth in roll-on and colour cosmetics not sufficient to offset lower demand
in the aerosol and fragrance categories. The fashion retail brand portfolio
had a challenging semester with supplier and global supply chain issues
impacting the semester’s sales. December retail sales fell short of a strong
prior year base and were impacted by stock shortages in some key brands and
styles in the month.

The group’s consolidated gross profit margin improved over the prior year’s
underpinned by sound cost control, improved manufacturing efficiency and
increased selling prices to recover rising input costs. Selling and
administrative expenses were tightly controlled and ended in line with last
year, which together with the improved gross profit, supported a sound
growth in the Group’s operating margin and operating profit over the prior
year.

Net finance costs were marginally higher than last year due to increased
average borrowing levels following the payment of the special dividend
partially offset by lower interest rates. The effective tax rate is largely
in line with the corporate tax rate of 27%.

CAPITAL GAINS
Capital gains increased because of the disposal of the assets and business
conducted by I&J’s Umsobomvu joint venture with effect from July 2024. This
transaction resulted in a capital gain of R12,6 million after taxation.
CONSOLIDATED HEADLINE AND ATTRIBUTABLE EARNINGS
The weighted average number of shares in issue is expected to be 0,2%
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 2024 are expected to increase by between 8% and 10% over
       the prior year, translating into an increase from last year’s 374,3
       cents to a range of between 404,2 and 411,7 cents per share; and

   ▪   Consolidated earnings per share for the six months ended 31 December
       2024, including capital gains and losses, are expected to increase
       by between 9% and 11% over the prior year, translating into an
       increase from last year’s 374,1 cents to a range of between 407,8
       and 415,3 cents per share.


It is expected that AVI will release its full results for the six months
ended 31 December 2024 on or about 10 March 2025.


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


Illovo
28 January 2025

Sponsor
The Standard Bank of South Africa Limited