AV I Net profits

The persistent whisperings that consumer brands giant AVI could be looking to sell off its fishing subsidiary I&J might finally fade out.

I&J, which specialises mainly in catching and selling frozen hake, appears to be delivering a hefty profit catch for AVI, which has invested substantially in the past financial year.

AVI’s recent trading update showed that I&J generated revenue of R982m in the halfyear to December — almost 20% up on the R824m reported in the corresponding six months in 2013.

But AVI, headed by CEO Simon Crutchley, cautioned that its profit growth was tempered by unrealised losses on fuel hedges after the significant drop in oil prices.

In the full year to June, I&J produced operating profits of R245m from revenue of R1,8bn. If the same margin is applied to the interim trading update then I&J could produce between R125m and R130m for the first half of trading.

The strong top-line performance — obviously buoyed by the weaker rand’s effect on export sales — comes after AVI invested R108m in a new deep sea fishing trawler and a used freezer factory ship — both of which are Simon Crutchley Losses on fuel hedges