South African consumer goods group AVI has warned its full-year earnings are expected to be down more than 10% after problems at seafood arm I&J.

In a trading update ahead of the end of AVI’s financial year, which comes to a close on Tuesday (30 June), the company said its consolidated headline earnings per share for the year are expected to be 7-12% lower at between ZAR4.55 and ZAR4.81.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Headline earnings per share is a metric closely-watched by investors in South Africa.

Consolidated earnings per share, including capital gains and losses, are expected to increase by between 16% and 21% to between ZAR5.67 and ZAR5.91 a share.

AVI said its performance in the second half of the financial year was “materially impacted” by Covid-19. 

See Also:

I&J’s production was “disrupted” by what AVI said was the “relatively earlier build-up” of Covid-19 infections in the Western Cape. The company said compliance with isolation and quarantine protocols reduced the number of employees available to work, leading to a fall in processing capacity and a concomitant reduction in fishing activity during the fourth quarter.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In addition, AVI pointed to congestion at the Cape Town port, which delayed export shipments, hitting margins.

The challenges at I&J will lead to “a lower second half profit than last year”, AVI said. The company’s full-year operating profit is expected to be between 5% and 10% lower than the previous 12 months.

However, the company said its “essential businesses” were able to “sustain production and supply our retail partners throughout the period”.

AVI’s Entyce drinks unit and Snackworks arm benefited from increased demand for many products due to increased consumption during the lockdown period in the country.