From our Fund Manager’s Desk
Waiting for GenAI’s Godot: When will the profits arrive?
As a core holding in Melville Douglas portfolios, AVI has delivered positive returns over the past two years, reinforcing its role as a defensive, high-quality name in the South African consumer staples space.
While the start of the 2025 calendar year proved challenging, marked by muted revenue growth and volume pressure, group earnings remained resilient. This performance was underpinned by AVI’s diverse portfolio of leading brands, ongoing factory automation initiatives, and strong operating leverage. In the latter part of the year, management executed a series of strategic actions to mitigate the impact of weak volumes on top-line growth. These measures included both portfolio and supply chain optimisation...
