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Finweek English Edition - - Companies & markets - ANA MON­TEIRO

RE­PORT­ING A 36% IN­CREASE IN head­line earn­ings per share to 82,8c/share for the first half to end-De­cem­ber 2006, food and semi-durable brands con­glom­er­ate AVI also pleased its share­hold­ers with an in­terim div­i­dend of 30c/ share.

While the con­tri­bu­tion from all busi­nesses in the group (bar the Real Bev­er­age Com­pany and Denny Mush­rooms on an op­er­at­ing profit level) con­trib­uted to the gains, it was the turn­around at fish­ing busi­ness Irvin & John­son (I&J) and the growth in high-end shoe re­tailer A&D Spitz (rev­enue up 38,5% and op­er­at­ing prof­its up 44,7%) that re­ally shone. OP­POR­TU­NI­TIES • The Real Bev­er­age Com­pany posted an ex­cel­lent 25% rev­enue gain, but in­ef­fi­cient dis­tri­bu­tion and higher pack­ag­ing ma­te­rial prices trans­lated into a R9,7m op­er­at­ing loss for the busi­ness. Man­age­ment has its eye on this ball and is de­ter­mined to turn the sit­u­a­tion around. • The re­struc­tur­ing of AVI, which has in­tro­duced even more ef­fi­ciency as sup­port ser­vices are cen­tralised and shared, has had def­i­nite ben­e­fits. • A 15% de­cline in pro­duc­tion vol­umes at mush­room busi­ness Denny was par­tially off­set by bet­ter sell­ing prices for both fresh and canned mush­rooms. AVI says man­age­ment changes have been made to ad­dress the poor per­for­mance. RISKS • I&J’s suc­cess de­pends heav­ily on ex­oge­nous fac­tors. • The over­all im­prove­ment in the I&J stable was dragged down by a R10,9m net loss of its Aus­tralian joint ven­ture with Sim­plot.

AN­GLO­VAAL IN­DUS­TRIES

Source: I-Net Bridge

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