AVI LIMITED - Chairman's comment on trading conditions

Chairman's comment on trading conditions

AVI LIMITED
Registration number 1944/017201/06
Share Code: AVI
ISIN: ZAE000049433
("AVI" or “the Company”)

CHAIRMAN’S COMMENT ON TRADING CONDITIONS

At the annual general meeting of AVI held this morning, 10
November 2026, the Chairman of the Board of Directors, Mike
Watters, provided an update on trading conditions as follows:

“The domestic trading environment has remained challenging,
while regional markets collectively have delivered greater
buoyancy.

Group revenue for the four months ended 31 October 2026
remained in line with the same period last year. Snackworks
delivered revenue growth from sound demand and good innovation.
Entyce revenue declined with competition in the creamer
category requiring  price reductions but supporting an
improvement in sales volumes. I&J revenue increased due to
selling price increases taken to ameliorate the impact of
higher fuel prices, as well as improved sales volumes in export
markets. The Fashion Brand businesses continue to trade in a
constrained consumer environment with sustained deep
discounting by fashion retailers and competitors in personal
care categories. SPITZ is well positioned ahead of the December
festive trading period with lay-by units 7% higher than last
year.

The   Group’s   consolidated   gross   profit  margin   declined
marginally, due primarily to once-off costs of R90,1 million in
respect of wage restructuring across Entyce and Snackworks.
This restructuring initiative is expected to deliver a payback
of under 18 months. Margins across most categories improved,
except for Entyce where competition impacted creamer margins.
Costs were tightly managed and ended largely in line with last
year   with   benefits   from   restructuring  initiatives   and
favourable foreign exchange revaluations offsetting
inflationary increases and the impact of higher fuel prices on
distribution. The Group’s operating profit improved on the
prior year excluding the impact of the restructuring costs but
decreased marginally on a reported basis off a strong prior
year base.”

The information above has not been reviewed and reported on by
the Group’s auditors.

Illovo
10 November 2026

Sponsor
The Standard Bank of South Africa Limited
Date: 10/11/2026 11:51:33
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