Nailed to the Green Cross: AVI’s earnings flounder
The consumer goods group says SA’s economic malaise is taking its toll
Consumer goods group AVI, whose brands include footwear retailer Spitz and seafood company I&J, says earnings fell in the year to end June after the group wrote down the value of struggling shoe business Green Cross.
SA’s economic malaise is taking its toll on fast-moving consumer goods producers and major retailers, which have struggled to grow volumes or pass higher costs on to cash-strapped consumers.
AVI said on Wednesday that it had written down the value of Green Cross by R87m following a restructuring of that business and in recognition of the time it would take “to return the business to acceptable levels of profitability”. The restructuring process costs R27m...