Consumer goods producers globally have lifted prices to cope with surging costs for almost all raw materials, energy and packaging after Russia's invasion of Ukraine compounded pandemic-related supply chain logjams.

However, they face a challenge in how much they can raise prices without sacrificing volumes as increasingly cost-conscious consumers rein in spending.

In addition, crippling rolling power cuts added direct costs of 21.1 million rand ($1.11 million) in the reporting period, the maker of Five Roses tea and Bakers biscuits said.

Its shares were up 0.3% in early trade.

AVI said headline earnings per share (HEPS) for the six-months ended Dec. 31 rose to 374.3 cents from 318.9 cents.

Group revenue grew by 7.1% to 8.3 billion rand, benefiting from improved sales volumes and higher selling prices in its tea and coffee, snacks, and fashion businesses.

Price increases, cost controls and foreign exchange hedging protected its margins, the group added.

I&J, the group's frozen fish business, had a difficult first half with revenue declining 5.1% due to poor catch rates, aggressive competition and the loss of export sales due to inefficiencies at Cape Town's port, AVI said.

South Africa's major ports are grappling with backlogs and congestion due to underinvestment in equipment by state-logistics firm Transnet. AVI said these port inefficiencies, power cuts and continued infrastructure failures will continue to add cost and complexity to its business.

It said inefficiency of South Africa's ports and more recently the impact of disruptions to shipping through the Red Sea have increased shipping costs and lead times.

"We have offset these risks through earlier shipping dates and increased safety stocks and are not expecting any material disruption to our ability to supply in the second semester," AVI added.

Other fashion retailers are also grappling with the problem, forcing them to ramp up local production. South African food services firm Bid Corporation is also holding buffer stocks to mitigate the impact.

($1 = 19.0692 rand)

(Reporting by Nqobile Dludla; Editing by Kim Coghill and Susan Fenton)

By Nqobile Dludla