AVI Limited. JSE: AVI

AVI shares

Background of AVI Limited

  • AVI Limited is a South African consumer products company with an extensive brand portfolio of more than 50 brands. The company is listed in the Food Products sector of the Johannesburg Stock Exchange (JSE) and is focused on the fast-moving consumer goods (FMCG) market. Its key competencies are the processing, manufacturing and marketing of products including frozen convenience foods, sweet and savoury snacks, biscuits, hot beverages, cosmetics, personal care products, fashion apparel, shoes and accessories.

  • AVI’s brands include household names such as Five Roses, House of Coffees, Freshpak, Frisco, Ellis Brown and Koffiehuis in the Beverages category; Bakers, Willards, Provita, Pyotts and Baumann’s in the Biscuits and Snacks category; and Lavazza, Ciro and Douwe Egberts Cafitesse.

  • Today, AVI’s stable also boasts well-known cosmetics brands such as Yardley, Cotyand Lentheric, as well as local and international fashion brands such as Carvela, Spitz, Lacoste, Kurt Geiger, Green Cross Shoes and Gant.

  • The group relies on a very well developed shared services structure spanning international, IT, logistics, finance, marketing, procurement and field marketing, which allows them to effectively leverage AVI’s large scale.

  • AVI boasted a turnover of more than R 11.24 billion in the 2014/15 financial year.

AVI Limited Shares Growth Driver

  • The consumer goods market in South Africa has struggled recently due to the weakening economy and higher inflation, which has reduced consumer demand across the board.

  • Despite having a well-established foothold in South Africa and an illustrious stable of brands, AVI has recognised that the current reduced consumer demand will persist, to the detriment of the group’s performance.

  • The current management team is trying to balance an increase in selling prices without compromising a growth in volumes. The company’s tea, coffee, savoury biscuits and chip brands have all however declined in volume as the company implemented price increases above inflation, in order to offset pressures caused by the weak rand.

  • The group is looking more and more towards international markets to achieve revenue growth. Meanwhile, their investment procurement programme is expected to yield savings of R 120 million, whilst a capital expenditure of R 1 billion in enhancing manufacturing and plants processes may also eliminate the need for more price hikes and subsequent weaker consumer demand.

  • Despite expectations of a difficult short-term future, AVI is established enough to weather the tough trade conditions, and continues to seek growth and brand acquisition opportunities.

AVI Limited Group Investor Tip

  • For AVI, any significant further weakening of the Rand will be difficult to recover through price increases, so there is a risk that gross profit margins will decline in the short-term.

  • Shareholders have enjoyed a history of healthy dividends and AVI share prices, but may experience slightly less rosy times in the current challenging market environment. Various smart decisions made by AVI to offset these challenges have been successful, with AVI share prices and financial data remaining very strong. Investment in AVI shares would therefore probably not pose too much of a risk for investors who are willing to be patient.

AVI Limited Major Shareholders

Government Employees Pension Fund, AVI Investment Services (Pty) Ltd., Liberty Group and Fidelity Worldwide Investment.

  • Sector

    Consumer Staples

  • Industry

    Consumer Products
  • Sub industry

    Packaged Food

How to buy AVI Limited Group Shares

  • AVI Limited : How to buy AVI Limited Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy AVI Limited Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in AVI Limited Holdings and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase AVI Limited Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in AVI Limited.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
  • Buy Shares with Confidence

    Buying JSE shares has never been this convenient and easy. #myfirstshare

    View more JSE shares for sale – here.

Summary
Review Date
Reviewed Item
AVI Limited
Author Rating
51star1star1star1star1star