AVI H1 HEPS up 8% to 210c

Revenue from continuing operations rose by 10.8% to R4.89bn‚ with selling price increases and volume growth in most categories offset by lower sales volumes in I&J.

Operating profit was up by 7.9% to R921.3m‚ with a decrease in the consolidated operating profit margin from 19.3% to 18.8% largely due to I&J's poorer result.

An interim dividend of 90c per share was declared.

The company said the review period was characterised by constrained consumer spending and increased competition in most categories.

In terms of operating divisions‚ Entyce delivered slightly higher profit than last year with strong performances in tea and creamer‚ offset by pressure in the coffee category.

Snackworks' result was driven by good volume growth with effective promotional activity and improved factory performance.

Spitz achieved strong volume growth resulting in leverage and profit growth despite the material impact of a weaker rand on gross profit margins.

Green Cross was included from 1 July 2012 and partially offset the decline in the contribution from I&J‚ relative to the first half of last year.

Increased focus on business in the rest of Africa yielded revenue growth of 15.7% and operating profit of 18.3%.

"We anticipate that the current constrained consumer demand environment will persist and result in increased levels of competition in our categories‚" AVI said in its outlook.

"Together with cost pressure attributable to the weaker rand‚ rising energy costs and sustained high prices for some of our raw material requirements‚ this will result in margin pressure in the second half of the year."