Group turnover for South African consumer products and services group AVI Limited increased by 5% in the first quarter, chairperson Anthony Ardington said on Wednesday.
He told shareholders at the group’s annual general meeting that although local consumer demand had slowed from the levels evident in the last quarter of the previous financial year, the outlook generally remained positive.
“Group turnover for the first quarter has increased by 5% to R1,8-billion. The growth in turnover was impacted by deflation in certain categories and the continued strength of the rand. The average rand/dollar exchange rate for the first quarter was R6,34 a dollar, compared to R7,39 a dollar for the same period last year.
“As stated in the annual report, the continued rand strength is a negative factor for the group because of the significant export component within I&J,” Ardington said.
Regarding the recent restructuring announcement made by the group, Ardington said: “The restructuring is in line with AVI’s strategic focus on branded consumer products and services. The board believes that the intended sale of Vector and the unbundling and listing of Consol are positive developments for the group and in the best interests of shareholders.
“We are confident that Consol will also prosper as a standalone company and be able to pursue an independent growth strategy.
“While the board is not legally required to obtain shareholder approval for the proposed unbundling and listing of Consol, we feel that our shareholders should vote on such a material issue. Details of the general meeting will be advised in due course.” — I-Net Bridge