AVI Says Low South African Consumer Demand May Boost Competition

AVI Ltd. (AVI), South Africa’s second- largest consumer-goods maker, said reduced demand may boost competition at a time when costs are rising.

Net income rose 38 percent to 970 million rand ($118.3 million) in the year through June, the Johannesburg-based company said in a statement to the stock exchange today.

“We anticipate that the current constrained consumer demand environment will persist and consequently expect increased competition in our categories which, coupled with raw material and other cost pressures, will put pressure on margins in the fast-moving consumer goods sector generally,” AVI said.

AVI shares rose 3.1 percent to 59.73 rand as of 9:09 a.m. in Johannesburg today.

To contact the reporter on this story: Franz Wild in Johannesburg at fwild@bloomberg.net

To contact the editor responsible for this story: Nasreen Seria at nseria@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.