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 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.