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AVI (AVI) investor relations material
AVI H2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Delivered sound performance with group revenue up 1% and operating profit up 7.8% year-over-year, despite weak demand and supply chain challenges.
Gross margin improved to 42.7%, and headline earnings per share rose 6.1%.
Sustained strong cash flow generation and high return on capital employed at 34.9%.
R42 million invested in restructuring to drive future value and efficiency improvements.
Focused on gross margin preservation, cost control, and innovation to drive incremental growth.
Financial highlights
Revenue: R16,021.5m (+1.0% YoY); Operating profit: R3,561.9m (+7.8% YoY); Net financing cost increased 22.9%.
Gross margin: 42.7% (+2.4pp YoY); Operating margin: 22.2%.
Headline earnings: R2,418.2m (+6.4% YoY); HEPS: 729.1c (+6.1% YoY).
Cash generated by operations up 5.5%, with cash to EBITDA at 96.1%.
Final dividend: 406c/share; total normal dividend: 626c/share (+6.1% YoY); dividend yield: 6.7%.
Outlook and guidance
Expecting benefits from restructuring and innovation to support performance in FY2026.
Lower input cost inflation and improved hedging position bode well for margins, except for coffee.
Early signs of volume improvement in key categories, but macro environment remains challenging.
No profit forecast provided; cautious optimism for improved performance if consumer demand recovers.
Planned capital expenditure of R425m in F26 to support innovation and operational upgrades.
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