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
Shoprite falls 17% as market reacts to profit warning
30/01/2019 - 10:59
Shoprite's share price fell 16.6% to R148.83 on Wednesday morning when the market reacted to a trading update it released at 5.30pm on Tuesday.
Woolworths bedeviled by declining sales
18/01/2019 - 10:35
As Woolworths tries to recover from the impairments of A$712.5 million (R7.02 billion) it suffered last year in its Australian subsidiary David Jones, the retailer continued to experience declining sales in the 26 weeks to end December trading period in South Africa.
What FMCG companies can learn from the online trading industry
18/12/2018 - 08:09
Fast-Moving Consumer Goods (FMCG) are, by their very nature, products that are designed to be sold quickly at a relatively low cost. Unlike luxury items that often need to sit on the shelf for an extended period of time in order to build up some exclusivity, FMCG products need to be sold as quickly as they’re advertised. With speed being the key ingredient in the FMCG industry, any weak links in the chain can harm a manufacturer's bottom-line.
Ghost of listeriosis past: Tiger Brands faces multimillion-rand class action
04/12/2018 - 13:59
The material impact of the damage to Tiger Brands could be hundreds of millions of rand, according to analysts, after the High Court granted an order certifying a class action against the food producer as a result of the listeriosis outbreak that killed 200 people early this year.
Listeriosis outbreak haunts Tiger Brands
23/11/2018 - 10:06
The Listeriosis outbreak in South Africa came back to haunt Tiger Brands, with the group reporting a 26 percent decline in headline earnings per share (Heps) to 1 587 cents a share during the year to end September, while revenue fell 9 percent to R15.87.