Consumer-goods company AVI, which owns Five Roses, Freshpak, I&J and Bakers Biscuits in SA, is expecting its headline earnings to bounce back to pre-pandemic levels despite a tough year for consumers.
Headline earnings per share (HEPS) are expected to increase 5%-7% to 524.8c-534.8c for its 2022 year amid low economic growth, high inflation, rising fuel prices and ongoing load-shedding hitting consumers and the company, AVI said on Wednesday.
This is higher than the 499.9c HEPS in 2021, 470.8c in 2020 and 516.6c in 2019.
The riots in Gauteng and KwaZulu-Natal in July 2021, supply-chain challenges worsened by the war in Ukraine and the devastating KZN floods in April aggravated operating conditions for AVI.
AVI owns many market-leading food brands and a range of upmarket clothing names including Spitz, Gant and Green Cross shoes. Its coffee business includes the Lavazza, House of Coffees, Ciro and Frisco brands.
Group revenue will increase 4.3%, with all categories hitting their targets except for I&J as lower fish volumes, higher fuel prices for fishing fleets and the impact of the stronger rand affected sales.
It was announced in December that US food powerhouse Mondelez, owner of the Cadbury, Oreo and Toblerone brands, was no longer in talks to buy its snacks division, which includes the Bakers and Pro-Vita brands.
Mondelez, which changed its name from Kraft Foods in 2012, was in talks to buy the company’s snacks business before it fell flat. No reasons were given why the potential deal fell through.
Some foreign companies have shown interest in SA’s beverage and food companies in the past, attracted by depressed valuations and the opportunities to serve the wider African continent.
AVI expects to release its annual results for the year end-June on September 5.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.