AVI's earnings rise by 20%

AVI said that consolidated earnings per share for continuing operations for the six months to December‚ including capital gains and losses‚ are expected to increase by more than 20% compared with the comparative period last year.

A change in the relationship with Coty results in a R150m payment to AVI. Image: Takealot.com

The group said a revision of the commercial relationship between AVI subsidiary Indigo Brands and global beauty group Coty meant Indigo would receive a one-off pretax payment of R150m in November‚ which would be included in AVI's consolidated earnings for the six months to December as a capital item.

AVI announced separately that Indigo and Coty had agreed to revise the terms of their commercial relationship. Indigo has ceased to be the exclusive licensee of Coty in South Africa and has now been appointed as the exclusive manufacturer‚ importer‚ distributor and marketer of Coty's portfolio in South Africa and 13 other African countries.

The company's consolidated earnings per share for the total operations‚ including capital gains and losses‚ are also expected to increase by more than 20% compared with the comparative period last year‚ AVI said.

AVI said it would release an updated trading statement in January confirming its forecasts for headline and attributable earnings. The company will release its results in March.