AVI has delivered solid earnings growth and maintained a strong balance sheet, the JSE-listed food company said on Monday as it delivered results for the year ended June 30 2009.
The year was characterised by increasing pressure on consumers’ disposable incomes as well as high costs of key raw materials, AVI said in a statement.
The company is behind well-known brands including Five Roses, Freshpak, Frisco, Bakers, Pyotts and Baumann’s, I&J and Denny.
AVI said revenue from continuing operations was up 12% to R7,5-billion while operating profit from continuing operations rose 14% to R908-million.
Headline earnings per share from continuing operations increased by 10% to 175 cents, the company said.
However, AVI said consumer demand was likely to remain muted in the first half of the new financial year.
It hoped, however, to see ”some improvement” in the second half.
In addition to wholly owned subsidiary I&J, which was geared to export volumes, international prices and foreign exchange rates might not deliver the same level of profit in the year ahead if current exchange rates and export market demand persisted, the company said.
Turning to the unsolicited approach made by Tiger Brands during the year to acquire the entire issued share capital of AVI, the company said that the expression of interest was never converted into a formal offer.
”After a process of engagement, Tiger unilaterally withdrew its expression of interest on March 4 2009.”
AVI said it incurred costs of R6-million related to this process. — Sapa