South African executive Simon Crutchley guides AVI to $65 million half-year earnings

AVI Limited, a Sandton-based food and beverage company led by South African executive Simon Crutchley, has announced an impressive financial performance for the first half of its 2024 fiscal year. The company’s half-year headline earnings soared to $65 million, solidifying its position as one of South Africa’s most profitable entities.

According to the group’s recently published interim financial statements, AVI Limited experienced a notable 17.4 percent increase in headline earnings, reaching R1.24 billion ($65.22 million) for the six months ended December 31, 2023.

This is largely attributed to enhanced profitability driven by higher selling prices, improved factory efficiencies, and rigorous cost control measures. The company’s operating profit saw significant improvement, supported by a lower increase in working capital, further bolstering its financial performance.

AVI Limited reported a 7.1 percent increase in revenue compared to the same period last year, climbing from R7.82 billion ($412.1 million) to R8.38 billion ($441.4 million). Revenue growth across various segments, including Entyce and Snackworks, was fueled by improved sales volumes and higher selling prices. However, the I&J segment faced challenges with a 5 percent decline in revenue due to operational issues.

AVI’s interim dividend announcement reflects strong financial performance

Simon Crutchley, who has served as CEO of AVI Limited since 2005, has played a pivotal role in steering the company towards sustained growth and success. With a 0.25 percent stake comprising 840,201 ordinary shares in AVI Limited, valued at R73.92 million ($3.89 million), Crutchley demonstrates unwavering dedication to the company’s future prosperity.

AVI Limited’s strong fiscal performance in the first half of 2024 underscores its resilience and strategic focus amid evolving market dynamics. With a commitment to innovation, operational excellence, and shareholder value, the company remains well-positioned for continued growth and success in the dynamic South African market and beyond.

In light of the company’s robust financial results, the board of AVI Limited has declared an interim ordinary dividend of R2.02 ($0.107) per share, aligning with the group’s headline earnings. AVI Limited, listed on the Johannesburg Stock Exchange, boasts a diverse portfolio of over 50 brands spanning beverages, snacks, frozen foods, personal care, cosmetics, and fashion.