AVI Limited said headline earnings for the fiscal year ended 30 June 2026 increased 6.0% year‑on‑year, while revenue grew modestly 1.4%. Operating profit rose 4.4% to ZAR X billion, with an underlying gain of 10.1% when the impact of an abalone asset revaluation and a decline in creamer profit are excluded. The group’s operating margin improved to 22.9% from 22.5% a year earlier, and gross profit margin slipped slightly to 42.4% from 42.7%.
Cash generated from operations climbed 10.6% to ZAR 4.4 billion, delivering a cash‑to‑EBITDA conversion of 101.8%. Net debt, inclusive of lease liabilities, fell to ZAR 1.7 billion from ZAR 2.2 billion, reducing the net‑debt‑to‑EBITDA ratio to 0.4 and the net‑debt‑to‑capital‑employed ratio to 22.1%. Capital expenditure was trimmed to ZAR 387 million from ZAR 601 million, while return on capital employed rose to 35.7%.
The company declared a final dividend of ZAR 4.18 per share, bringing total annual dividends to ZAR 6.63 per share, a 5.9% increase. A special dividend of ZAR 3.00 per share was also approved. Based on the June‑30 closing price, the combined dividend yield is just under 10%.
Share price responded positively, climbing 2.66% to $28.92 after the announcement. The stock’s 52‑week range spans $23.30 to $52.42.
CEO Simon described the results as “a tale of two halves,” noting a strong first half followed by a more challenging second half. He highlighted the company’s long‑standing dividend policy, stating that the present value of dividends paid over the past 22 years, adjusted for inflation, exceeds ZAR 41.5 billion. CFO Justin emphasized the resilience of the business, pointing to an 11.1% compound annual operating profit growth rate since 2023.
The report flagged a ZAR 91 million loss of sales in the Entyce and Snackworks brands due to wholesale order deferrals in June, and a ZAR 84 million hit from a biological‑asset revaluation in the abalone segment. Restructuring initiatives delivered ZAR 110 million of incremental benefits for the year, with an additional ZAR 40 million expected in the next fiscal year.
Operating in South Africa, Botswana, Mozambique, Zambia, mainland China and Hong Kong, AVI noted that coffee input costs rose over 12% and that water‑backup infrastructure spending reached ZAR 13 million this year, adding to a cumulative ZAR 169 million invested in water and electricity resilience.
Analysts from JPMorgan, Citi and Montombo Wealth provided commentary on the results, but no specific forecasts were disclosed in the call.
