South African fast moving branded goods group AVI delivered steady single digit revenue growth from its Entyce Beverages and Snackworks business units in the six months to December 31, 2025.
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AVI, the fast-moving consumer goods group, continued its several years of sustained profit growth trend and lifted the interim dividend 11,4% to 245 cents per share.
Despite the weak economy, the group, particularly the Snackworks and Entyce units, generated operating profit CAGR (compound annual growth rate) of 12,5% since the first half of 2023.
Group revenue increased by 4,9% for the six months to December 31. Sales volume growth in biscuits was supported by innovation. There was a strong December performance in the fashion retail portfolio with higher footwear volumes, said the chairman Mike Watters and CEO Simon Crutchley in a statement.
Growth was largest in I&J, which benefitted from improved selling prices, a favourable product mix, and better fish sales volumes across the domestic and export markets, supported by added capacity from the Umlungisi, which commenced fishing in February 2025.
I&J revenue of R1,31bn was 9,4% higher and operating profit increased sharply from R36,1 million to R108,4m. The operating profit margin improved from 3% to 8,3%. Higher fish selling prices and increased sales volumes across both the domestic and export markets were partly offset by a decline in abalone sales due to weak demand and oversupply in key markets.
I&J’s prospects are materially dependent on fishing performance, fuel prices, and exchange rates. A 5% decrease in the total allowable catch (TAC) was announced for the 2026 calendar year. Notwithstanding additional capacity from the Umlungisi, a material improvement in catch rates is required before the TAC reduction is a material factor. Export demand is sound.
Any improvement in catch rates, which are at historical lows, will support profit improvement, Watters and Crutchley said.
Entyce Beverages revenue growth reflected improved creamer volumes and higher selling prices across the tea and coffee categories. Revenue of R2,73bn was 4,5% higher than last year while operating profit improved 6,4%, off a strong prior year base, to R845m.
Snackworks revenue of R3,25bn was 5,9% higher and operating profit increased 12,3% to R857,4m. The operating profit margin improved to 26,4% from 24,9%, recovering last year’s decline with better profitability across both the snacking and biscuit brands.
Personal Care continued to be challenged with Indigo’s revenue of R470m some 7,2% lower due to falling category demand in the deodorant body spray category and competitive disruption. Several innovations were launched with good initial demand expected to support revenue and offset declines in the body spray category over time. The operating profit margin increased to 20,3% from 18,3% .
Footwear and apparel delivered 3,4% revenue growth with a strong December performance. Demand for the core Carvela brand was supported by better stock availability. Competition remained intense, with competitor discounting requiring price reductions across some styles to support demand.
Footwear revenue increased 3,4% to R1,12bn, largely due to a 5,5% growth in footwear volumes. Operating profit increased 6,1% to R306,6m, with the operating profit margin improving to 27,5% from 26,8%.
“With a large portion of the raw material and foreign exchange requirements for the second half secured, the business units will continue to focus on balancing selling prices, volumes, and profit margins to achieve the best long-term return from our brands. Effectively managing costs remains imperative, with benefits from restructuring initiatives implemented last year and during the first semester expected to continue to deliver benefits in the second half,” the executives said.
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