Consumer group AVI reported a 6% rise in earnings in a tough trading environment and rewarded shareholders with an increased payout and a special dividend.The group, which owns some of South Africa’s best known brands, including Five Roses, Salticrax and Big Korn Bites, on Monday reported a 1.4% rise in revenue to R16.24bn for the year to end-June, describing it as a resilient performance in a challenging trading environment.Profit for the year was up 5.5% at R2.56bn, while headline earnings per share increased 5.3% to 767.9c.Strong cash generation supported a reduction in net debt and the group declared a final dividend of 418c, taking the total dividend to 663c, up 5.9%. The group also declared a special dividend of 300c per share. The group said the first half benefited from selling price increases, volume growth in several categories and sound margin management, supported by cost-efficiency initiatives implemented in the previous year. However, the second half proved more challenging, with weaker consumer demand exacerbated by materially higher fuel prices, sustained high interest rates and a generally more competitive environment. “The last quarter’s sales were substantially impacted by lower demand from distributors and wholesale customers who delayed purchases due to the threat of unrest surrounding the June 30 national protest action,” it said.Lower revenue in Entyce Beverages was partially offset by higher revenue for the Snackworks unit. Revenue growth was strongest in I&J, which benefited from improved selling prices and incremental capacity from the additional freezer vessel, which supported improved export hake fillet sales volumes. This was partly offset by a decline in abalone sales in key export markets. Indigo’s personal care revenue declined by 5.1%, largely due to lower demand in the core deodorant body spray category. Footwear and apparel brands delivered revenue growth of 2.1%, with improved full-year footwear sales volumes.AVI said the operating environment remains uncertain, both domestically and internationally, and tough trading conditions are expected to persist.AVI’s businesses remain focused on growing revenues but will respond to market conditions to achieve the appropriate balance between price, sales volumes and margins across all brands, it said.A revised operating structure for the Entyce and Snackworks businesses was implemented from July, with dedicated management teams to strengthen the group’s ability to remain competitive in the current environment. AVI said global geopolitical events continue to affect the outlook for higher interest rates, inflation and fuel prices, while the paucity of domestic economic growth and South Africa’s systemic unemployment levels are expected to constrain any improvement in disposable incomes in the coming financial year.“Notwithstanding the expectation of a difficult trading environment, the business remains well positioned to benefit significantly from any economic recovery,” it said.Business Day