AVIJSE:AVI -0.55%92 Operating Margin % is 24.69% as of Dec. 2025, which is 35% above its 10-year median of 18.28. GuruFocus rates JSE:AVI with a GF Score™ of 92/100 and a GF Value™ of R97.66 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,951 Consumer Packaged Goods companies, AVI ranks better than 94.46% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. AVI's Operating Income for the
six
months ended in Dec. 2025 was R2,194 Mil. AVI's Revenue for the
six
months ended in Dec. 2025 was R8,883 Mil. Therefore, AVI's Operating Margin % for the quarter that ended in Dec. 2025 was 24.69%.
Good Sign:
AVI Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for AVI's Operating Margin % or its related term are showing as below:
JSE:AVI'
s Operating Margin % Range Over the Past 10 Years
Min: 17.67 Med: 18.28 Max: 23.07
Current: 23.07
JSE:AVI's Operating Margin % is ranked better than 94.46% of 1951
companies
in the Consumer Packaged Goods industry
Industry Median: 5.26
vs JSE:AVI: 23.07
AVI's 5-Year Average Operating Margin % Growth Rate was 4.50% per year.
AVI's Operating Income for the
six
months ended in Dec. 2025 was R2,194 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was R3,791 Mil.
AVI (JSE:AVI) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
AVI Operating Margin % Related Terms
AVI Operating Margin % Historical Data
* Premium members only.
The historical data trend for AVI's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
JSE:AVI vs KHC, GIS: Operating Margin % Comparison
For the Packaged Foods subindustry, AVI's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
AVI Operating Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, AVI's Operating Margin % distribution charts can be found below:
* The bar in red indicates where AVI's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
AVI's Operating Margin % for the fiscal year that ended in Jun. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
AVI (JSE:AVI) has a Operating Margin % of 24.69% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on AVI and its competitors. This is 35% above median its historical median of 18.28. Over the past decade, AVI's Operating Margin % has ranged from 17.67 to 23.07. According to the industry distribution chart, AVI ranks #108 out of 1951 companies in the Consumer Packaged Goods industry, placing it in the top 5.5%.
Is AVI's Operating Margin % too high?
AVI's current Operating Margin % of 24.69% is 35% above median its 10-year median of 18.28. Over the past 10 years, this metric has ranged from a low of 17.67 to a high of 23.07. The Consumer Packaged Goods industry median Operating Margin % is 5.26. AVI's value of 24.69% is 369.4% above this industry median. Based on the distribution chart, AVI ranks #108 out of 1951 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, AVI has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does AVI's Operating Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, AVI ranks #108 out of 1951 companies for Operating Margin %. This places AVI in the top 6% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.26. AVI's value of 24.69% is 369.4% above this benchmark. Historically, AVI's own Operating Margin % has ranged from 17.67 to 23.07 over the past decade. While the company's 10-year median is 18.28 vs. the industry median of 5.26, AVI has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Consumer Packaged Goods company?
The median Operating Margin % among Consumer Packaged Goods companies is 5.26, based on 1,951 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AVI's current Operating Margin % of 24.69% is 369.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on AVI and its competitors. For the Consumer Packaged Goods industry, the median Operating Margin % is 5.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AVI's current Operating Margin % is 24.69%, which is 35% above median its own 10-year median of 18.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AVI stock overvalued right now?
Based on GuruFocus' analysis, AVI (JSE:AVI) is currently considered Fairly Valued. The stock's GF Value™ is R97.66, compared to a current price of R98.30 — trading 0.7% above its estimated fair value. The current Operating Margin % is 24.69%, which is 35% above median its 10-year median of 18.28 and 369.4% above the Consumer Packaged Goods industry median of 5.26. AVI's overall GF Score™ is 92/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For AVI (JSE:AVI), the current Operating Margin % is 24.69% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is AVI (JSE:AVI) Overvalued in 2026?
Based on GuruFocus' analysis, AVI stock appears to be overvalued.
The current stock price of R98.30 is trading 0.7% above its estimated GF Value™ of R97.66.
GuruFocus considers AVI to be Fairly Valued.
Key valuation signals for JSE:AVI:
Operating Margin %: 24.69% (35% above median its 10-year median of 18.28)
GF Value™: R97.66 vs. price of R98.30 (0.7% above fair value)
Industry Position: 369.4% above the Consumer Packaged Goods median (#108 of 1951)
No single metric tells the full story. See the JSE:AVI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AVI Ltd owns and manages a portfolio of various brands, with various product categories such as hot beverages, biscuits and snacks, frozen food, personal care products, cosmetics, and fashion supplies. These brands share the group's IT, finance, human resources, logistics, marketing, and procurement services. Its reportable segments are: Food and Beverage brands (comprising Entyce Beverages, Snackworks, and I&J), Fashion brands (comprising its Personal Care and Footwear & Apparel brands), and Corporate. The majority of its revenue is generated from the Food and Beverage brands segment, which includes its brands offering tea, coffee, creamer, sweet and savoury biscuits, baked and fried potatoes, maize snacks, seafood, etc. Geographically, it generates maximum revenue from South Africa.
92GF Score
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