Advertise with fastmoving.co.za
 
 

The company maintained its dividend cover, declaring a 250c per share final dividend, down from the prior period’s 260c.
The company maintained its dividend cover, declaring a 250c per share final dividend, down from the prior period’s 260c.

AVI earnings slip as consumer spending remains constrained

RETAILER NEWS

By Karl Gernetzky - Sep 9th, 09:33

Consumer goods group AVI, whose brands include footwear retailer Spitz and Five Roses tea, trimmed its final dividend 4% in the year to end-June as it continued to feel the pinch from a constrained consumer environment. 

Headline earnings per share fell 4.9% to 516.6c while operating profit declined 3% on a like-for-like basis during the period, but the company said it is targeting profit growth across its business in the 2020 financial year.

Strong brands and favourable price levels for some materials were some of the factors AVI cited as reasons to be optimistic, even as it battles low business confidence and pressure on consumer’s disposable income.

“The trading environment is expected to remain difficult, with constrained consumer spending. Our expectation is that many of our categories will continue to have low, or even negative, growth rates until there is a meaningful improvement in the economy,” it said.

The company maintained its dividend cover, declaring a 250c per share final dividend, down from the prior period’s 260c. This brought its full-year dividend to 415c, from 435c previously.

AVI said it is confident it is well-positioned to compete in a tough consumer environment, saying it will consider local and international acquisitions in the next financial year, if appropriate.

The company’s net debt, which included higher lease liabilities due to new accounting standards, rose to R2.44bn at end-June from R1.27bn in the prior period.Business Live 

Read more about: trade | profit | consumer goods | business | avi

Related News

How to keep customers and make sales this Black Friday
11/11/2019 - 12:44
Five years ago, Black Friday and Cyber Monday didn’t even exist in South Africa. Today, they’re a major cash cow for local retailers. On Black Friday last year, consumers spent a record R2.9 billion, and that number is expected to jump 30% this year, with e-commerce playing a major part in that growth.

Walgreens' Sefano Passina's $70bn global ambition
11/11/2019 - 10:07
Any deal would be impossible without the backing of the Italian billionaire who owns 16% of the group and has China in his sights.

How a US-China trade deal could benefit SA
11/11/2019 - 09:53
Africa is poised to become the “land of opportunity” for bond and equity investors should the US and China strike a trade deal, Bank of America (BofA) says.

Tiger Brands considers disposing of value-added meat business
11/11/2019 - 09:22
SA’s largest food producer, Tiger Brands, is considering disposing of its value-added meat products business (Vamp), saying on Friday it had determined it was not an ideal fit in the business.

Shoprite shock: Lead director resigns suddenly - just days after Wiese's re-election
07/11/2019 - 10:10
Just days after indicating that the Shoprite board will discuss the future of Christo Wiese as chair of the company in the coming months, Prof Shirley Zinn, the lead independent director of Shoprite, resigned.