AH-Vest dishes up strong results


AH-Vest dishes up strong results

Published Date: 2019-10-14 | Source: Stephen Gunnion | Author: Stephen Gunnion

AH-Vest dishes up strong results

The food producer says it is optimistic about future growth prospects as it focuses on export growth.

AH-Vest has reported a strong improvement in its 2019 financial performance after it increased production capacity and grew its share of the market for added value products. It says more of its customers were also satisfied with the service it gave them and it plans to continue focusing on service levels.

The branded food group makes and distributes products including All Joy tomato sauce, Veri Peri sauces and a number of other sauces, tomato products and marinades that you'll find on the shelves at your supermarket. It has also benefited from its recently-opened tomato paste factory in Tzaneen, which has reduced the country's dependency on imported products. Limpopo is SA's biggest tomato-growing region and its canning factory there takes up the excess production from farmers in the province.

Revenue rose 14% to R177 million in the year to end-June and operating profit jumped 240% to R12.3 million. Gross profit margins increased to 40.5% as it improved its procurement strategy and contained production costs. Investment revenue grew by 57% to R1.8 million, mainly due to higher interest income. Net profit increased by 449% to R5.93 million and headline earnings per share surged 462% to 5.9c per share. Like last year, it hasn't declared a dividend.

During the year, the company purchased property plant and equipment for R1.2 million, down from R9 million 2018, as its multi-year expansion programme drew to a close.

It said it had commissioned a new hot sauce line and expected to grow its share of the market in the year ahead. It is also expanding its canned vegetable range with a new, affordable 500g chakalaka can and an expanded ranged of tinned tomatoes. It plans to increase its brand penetration into new markets across the continue and expects exports to gain traction in the year ahead.

Its shares didn't trade on Friday, closing unchanged at 10c. The results were released after the close of trade.

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