AVI (AVI) H2 2025 earnings summary

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 profit margin improved to 42.7%, and headline earnings per share rose 6.1% to 729.1 cents.

• Sustained strong cash flow generation and high return on capital employed at 34.9%.

• R42 million invested in restructuring to drive future value.

• ZAR 5 billion returned to shareholders over two years, including special dividends.

Financial highlights

• Revenue: R16,021.5m (+1.0% YoY); Operating profit: R3,561.9m (+7.8% YoY); Net financing cost increased 22.9%.

• Gross profit: R6,837.5m (+3.4% YoY); Gross margin: 42.7% (+2.4pp YoY).

• Headline earnings: R2,418.2m (+6.4% YoY); HEPS: 729.1c (+6.1% YoY).

• Final dividend: 406c/share; total normal dividend: 626c/share (+6.1% YoY); special dividend paid in October 2024.

• Dividend yield: 6.7% at year-end share price.

Outlook and guidance

• Anticipates margin benefits from hedging and restructuring in FY 2026.

• Ongoing price/volume management and cost control essential to protect margins.

• I&J's outlook depends on fishing, fuel prices, and exchange rates; abalone recovery remains uncertain.

• Innovation in smaller, affordable formats and health-focused products to drive growth.

• Planned capital expenditure of R425m in F26 to support innovation and operational upgrades.