Shares in Five Roses owner plummet after dismal trading update
By Robert Laing - Jan 28th, 08:56
Fast moving consumer goods group AVI warned shareholders that its interim sales were flat and its headline earnings would decline by up to 7%.
The downbeat trading statement sent AVI’s share price down 9% to R95.16.
The group, whose brands include Bakers biscuits, Willards chips and Five Roses tea, is scheduled to release its results for the six months to end-December on March 11.
AVI said its interim revenue grew just a fraction, 0.2%, from the R7.3bn it reported for the first half of its 2018 financial year.
It expects to report its interim headline earnings per share (HEPS) fell to about R3.05 from R3.26, a drop of about 6.5%.
Basic earnings, which will include provisions for the significant restructuring of its Green Cross shoe business, will fall about 7%.
Earnings also suffered from its fishing group I&J locking itself into fuel contracts, thereby losing out when the oil price dropped.
“The trading environment remained difficult with continued pressure on consumer spending resulting in sales volume weakness in many of our businesses and was exacerbated by competitor discounting in some categories,” the company said in its trading statement.
Besides problems at Green Cross, another of AVI’s shoe businesses, Spitz, “was unable to repeat last year’s record December sales volumes”.Business Live
10 Tips to kick-starting an FMCG product in the pharmaceutical space
28/05/2019 - 10:04
I was recently asked to give advice to someone wanting to launch an FMCG product in the pharmaceutical space in South Africa. My short answer was that it would prove tricky at this particular point and time. But of course, there are some tips to be shared from practical knowledge of the business, here are ten of mine.
Barcoding the retail world
20/05/2019 - 10:32
In our daily lives, we hardly give the barcode a second thought. We only really come across it when we’re shopping and even then, it’s merely a ‘bunch of lines and spaces’ that helps us process the transaction and buy an item.
Clover set to return to profit in year to June
13/05/2019 - 10:15
Clover, which makes dairy-based foods and beverages, says it will return to profit in the year ending June 2019 after making its first annual loss in more than a decade in the prior year.
AVI hit by constrained consumer spending
13/03/2019 - 12:42
Food and beverage company AVI Limited felt the pinch of constrained consumer spending as income from its shoe brands Green Cross and Spitz slid in the half year to December, resulting in revenue in the footwear and apparel category declining by 9.2 percent to R1.14billion.
Spitz owner AVI says footwear sales walked all over its results
12/03/2019 - 10:27
AVI, whose brands include Bakers biscuits and seafood business I&J, said on its footwear businesses struggled the most in the six months ended December.