27 Jul - 2 min read

Anticipated Impact Of The Recent Looting & Violence In Respect Of The Year Ending 30 June 2022

Anticipated Impact Of The Recent Looting & Violence In Respect Of The Year Ending 30 June 2022

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


ANTICIPATED IMPACT OF THE RECENT LOOTING & VIOLENCE IN RESPECT OF THE
YEAR ENDING 30 JUNE 2022

Direct damage to the Company’s retail assets was limited to four Spitz
stores where all of the stock was stolen and the fixtures and fittings were
badly damaged. These stores are expected to resume trading within three to
six weeks. None of the Group’s other sites suffered damage, however
Snackworks lost some raw material held in a third party storage facility
that suffered a total loss. The asset and trading losses are insured,
subject to insurance excesses, and the net cost is not expected to be
material.

In order to safeguard our staff, all of AVI’s facilities and retail stores
were closed for several days, resulting in lost sales and production. On
re-opening, all manufacturing and distribution facilities and all undamaged
stores were able to resume normal operations, initially with lower demand
than usual due to the extensive damage to many malls, lower consumer footfall
and compromised logistics networks.

Retail trading has now recovered to acceptable levels, however it remains
to be seen whether the lost July sales can be recovered. There is adequate
stock on hand to support our traditional build-up in lay-bye sales ahead of
December.

Whilst the loss of stores by our retail and wholesale partners was
significant, and will take time to recover, we have seen strong
replenishment demand in the last week suggesting that retail densities will
improve in unaffected stores and the net effect will not be significant for
our food and beverage categories in the first semester.


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

Illovo
27 July 2021

Sponsor
The Standard Bank of South Africa Limited

Date: 27-07-2021 11:52:00
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