Avi Limited Class Y · JSE:AVI
Avi Limited Class Y — H1 2010 Earnings Presentation
20 slides from Avi Limited Class Y's earnings presentation, February 2010
Slide 1: Presentation to analysts for the six months ended 31 December 2009
AVI Limited Interim Results for the six months ended 31 December 2009 AVI Limited Presentation to analysts for the six months ended 31 December 2009 Agenda Key features Group financial results Operating environment Initiatives and prospects Questions and answers 1
Slide 2: Key features
AVI Limited Interim Results for the six months ended 31 December 2009 Key features Solid performance in difficult conditions Stable domestic selling prices Commodity costs in line with prior period in aggregate Operating profit maintained despite lower I&J contribution Net finance costs do
Slide 3: Group financial results: continuing operations
AVI Limited Interim Results for the six months ended 31 December 2009 Group financial results Continuing operations 1H10 1H09 Income statement Rm Rm %Δ Revenue 4 048,0 4 002,8 1,1 Gross profit 1 645,4 1 611,5 2,1 Gross margin % 40,6 40,3 0,7 Operating profit 534,7 534,6 - Operating margin % 13,2 13,
Slide 4: Gross profit and operating profit
AVI Limited Interim Results for the six months ended 31 December 2009 Group financial results Continuing operations – gross profit 2,1% up Group financial results Continuing operations – operating profit maintained 4
Slide 5: Change in I&J operating profit and cash flow
AVI Limited Interim Results for the six months ended 31 December 2009 Group financial results Continuing operations – change in I&J operating profit (excluding Alpesca) * = lower maintenance costs and lower variable costs due to higher catch rates Group financial results Continuing operations 1H10 1
Slide 6: Discontinued operation – Alpesca
AVI Limited Interim Results for the six months ended 31 December 2009 Group financial results Discontinued operation – Alpesca One shrimp vessel sold at book value during the period New quota regulations will be positive for Alpesca Operating loss of R8,9m compared to profit of R20,8m in prior
Slide 7: Operating environment: consumer demand and cost pressures
AVI Limited Interim Results for the six months ended 31 December 2009 Operating environment Consumer demand Tea, biscuits and creamer volumes supported by tactical pricing introduced %Δ in H2 F2009 Sales volume growth vs 1H09 Snacks volumes impacted by low service Tea 8,6 levels in fourth quarte
Slide 8: Operating environment: selling prices
AVI Limited Interim Results for the six months ended 31 December 2009 Operating environment Selling prices Limited price increases in first semester Average realised % Δ vs selling prices by category 1H09 Higher tea prices reflect rising black tea Tea 9,8 cost prices Biscuits (1,5) Snacks (1,7)
Slide 9: Market share and marketing expenditure
AVI Limited Interim Results for the six months ended 31 December 2009 Operating environment Market share Average value share for six month periods Operating environment Marketing expenditure Includes advertising and promotions, co-operative expenditure with customers and marketing department cos
Slide 10: Initiatives and prospects
AVI Limited Interim Results for the six months ended 31 December 2009 Initiatives and prospects Initiatives and prospects 10
Slide 11: Entyce initiatives
AVI Limited Interim Results for the six months ended 31 December 2009 Initiatives and prospects Entyce H1 F2010 • Tactical pricing to support tea and creamer volumes • Ellis Brown volumes and market share recovered • Coffee prices and volumes maintained • New Five Roses packaging launched successf
Slide 12: Snackworks initiatives
AVI Limited Interim Results for the six months ended 31 December 2009 Initiatives and prospects Snackworks H1 F2010 • Supported demand with price adjustments in H2 F2009 and tactical pricing during the current period • Reduced manufacturing yields and service levels due to focus on product quality
Slide 13: Chilled and frozen convenience brands
AVI Limited Interim Results for the six months ended 31 December 2009 Initiatives and prospects Chilled and frozen convenience brands Initiatives and prospects Chilled & frozen convenience brands H1 F2010 • Excellent fishing performance offset by market conditions / currency • Denny production imp
Slide 14: Fashion brands – Personal care
AVI Limited Interim Results for the six months ended 31 December 2009 Initiatives and prospects Fashion brands Initiatives and prospects Fashion brands – Personal care H1 2010 • Sustained volume growth • Benefit from selling price increases in H2 F2009 • Acquired adjoining distribution facility to
Slide 15: Fashion brands – Footwear & apparel; AVI Group
AVI Limited Interim Results for the six months ended 31 December 2009 Initiatives and prospects Fashion brands – Footwear & apparel H1 F2010 • Strong performance from key brands – Carvela, Kurt Geiger, Lacoste • Increased marketing support for owned brands • Tosoni brand re-introduced • Stable sto
Slide 16: AVI Group: medium term focus and prospects
AVI Limited Interim Results for the six months ended 31 December 2009 Initiatives and prospects AVI Group Medium term focus • Continue to leverage common activities across the group • Portfolio housekeeping to leverage management focus • Acquisitions Initiatives and prospects AVI Group Lower net
Slide 17: Questions and answers
AVI Limited Interim Results for the six months ended 31 December 2009 Questions and answers Thank you www.avi.co.za 17
Slide 18: Business unit information
AVI Limited Interim Results for the six months ended 31 December 2009 Business unit information Business unit financial results Continuing operations Segmental Segmental Revenue Operating Margin Operating Profit 1H10 1H09 1H10 1H09 1H10 1H09 Rm Rm %Δ Rm Rm %Δ % % Food & Beverage Brands 3 161,5 3 219
Slide 19: Chilled & frozen convenience brands: seafood analysis
AVI Limited Interim Results for the six months ended 31 December 2009 Chilled & frozen convenience brands Analysis of financial results – seafood products Revenue Operating Profit 1H10 1H09 1H10 1H09 Fishing Resource Rm Rm Rm Rm South Africa 669,6 808,1 59,8 125,7 Argentina 191,8 275,7 (8,9) 20,8 To
Slide 20: Out of Home analysis and seafood quota
AVI Limited Interim Results for the six months ended 31 December 2009 Out of Home Analysis of financial results Revenue Operating Profit 1H10 1H09 Full Year 1H10 1H09 Full Year Rm Rm 09 Rm Rm 09 Rm Rm Catering wholesalers* 20,0 21,5 42,2 8,5 8,7 17,6 Ciro - other channels 157,3 147,1 281,2 9,3 13,3