AH-Vest benefits from improved capacity


AH-Vest benefits from improved capacity

Published Date: 2019-04-12 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

AH-Vest benefits from improved capacity

The branded sauces company invested in plant and equipment in the six months to end-December for its Veri Peri line of sauces.

AH-Vest says steps taken to improve its production capacity helped it lift first-half profit by a third. The group, better known as All-Joy Foods, is the second largest producer of tomato sauce and other value-added products in SA. Apart from All Joy tomato sauce, it produces the Italian Range of pasta sauces and the Before you Braai range of meat marinades, amongst others.

It spent R1.3 million in plant and equipment over the period and commissioned the Veri Peri line of chilli sauces. It said this assisted it in improving its capacity.

The group received a total of R9.24 million in the previous two financial years as part of the Department of Trade and Industry's Manufacturing Competitiveness Enhancement Programme. It said the grant was received for capital expenditure and operating expenses already incurred.

Revenue rose 12% to R92.2 million in the six months to end-December as its value-added brands gained market share. It said it benefitted from improvements in service levels to its main trade customers and participation in Black Friday sales promotions last November. Operating expenses rose 12% to R31.6 million due to increased sales and higher distribution costs. Profit after tax jumped 33% to R3.1 million and headline earnings per share rose 36% to 3.09c. Like last year, it hasn't declared an interim dividend.

Its shares didn't trade yesterday, closing unchanged at 18c.

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