South African FMCG group AVI has grown full-year sales and earnings despite constrained consumer spending in the country, increasing competition and rising input costs.
The company said sales from continuing operations in the year to 30 June rose 11% to ZAR9.22bn (US$921.4m) driven by an “excellent” performance from the group’s Snackworks snack food unit. Total revenue was up 14.7%, boosted by the inclusion of footwear maker and retailer Green Cross.
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Operating profit increased 11.2% to ZAR1.53bn. AVI said margins were negatively impacted by higher fishing prices at its I&J seafood unit and the decision to absorb the impact of the higher South African rand in order to maintain volumes. The company also saw input prices rise, particularly at its beverage business.
Headline earnings per share from continuing operations increased 7% to 341 cents.
Looking to the coming year, AVI said it expects challenges to persist but insisted it is “optimistic” it will drive growth in key categories. The company added it is launching a “detailed review” of procurement activity and capital allocation.
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