South Africa’s second-largest food company, AVI, posted a 19% jump in profits from continuing operations during its first half, as it reaped the benefit from price rises.
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Net income rose to ZAR3.62bn (US$34.2m) in the six months ended 31 December, up from ZAR3.03bn in the comparable period of last year, the company said.
Headline earnings per share rose 12% to 103 cents for the first half, at the top end of its forecast of 5-15% growth.
Revenue from continuing operations was up 18% year-on-year to ZAR4bn.
However, AVI warned that the South African trading environment had taken a turn for the worse, with January and February sales falling short of the company’s forecast after retailers reduced inventory more aggressively than expected.
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By GlobalData“Household disposable income is likely to remain constrained by relatively high interest rates and reduced access to credit,” the company said.
Demand in the second-half is likely to be “dampened” because of global economic uncertainty, AVI warned.
However, the company declined to provide a specific forecast for the second half of its fiscal year.
