Related-party disclosures


The board of directors of Tiger Brands Limited has given general declarations in terms of section 75 of the Companies Act on directors’ personal financial interests. These declarations indicate that certain directors hold positions of influence in other entities which are suppliers, service providers, customers and/or competitors of Tiger Brands Limited. Transactions conducted with these director-related customers and suppliers were on an arm’s length basis.

The sales to and purchases from related parties are made at normal market prices. Outstanding balances at the year end reflect the gross amount and are unsecured and settlement occurs in cash. This assessment is undertaken at each financial year through examining the financial position of the related party and the market in which they operate. Given the ongoing liquidity and forex shortages experienced within Zimbabwe, the expected timing of receipt of the amounts owing from these related parties has been assessed. As a result, the outstanding balances from this entity have been fully impaired.

Details of material transactions with related parties not disclosed elsewhere in the financial statements are as follows:

(R’million) Management
owed by
related parties
Related party – Associates      
Empresas Carozzi 4,3
National Foods Holdings Limited 3,6
Related party – Associates      
Empresas Carozzi 3,2
National Foods Holdings Limited 3,9
(R’million) 2021 2020
Other related parties    
Key management personnel*    
Short-term employee benefits** 140,0 94,0
Post-employment and medical benefits 9,6 7,7
Share-based payments 4,6
Total compensation paid to key management personnel 149,6 106,3
* Key management personnel comprise the top tier of the organisation and the managing executives of the individual businesses.
** Certain key management personnel are paid sign-up and retention bonuses. An upfront payment is made with a two-year lock-in provision. Total of sign-up and retention bonuses paid in 2021 amounts to R11,0 million, total expenses in employee costs amounts to R2,3 million and total prepayment amounts to R8,7 million.
  2021 2020
(R’million) Amounts 
owed by/(to)
owned by/(to)
Related party – intergroup Subsidiaries        
Durban Confectionery Works Proprietary Limited 33,0 33,0
Tiger Consumer Brands Limited (48,9) 1 570,0 (32,1) 830,0
Tiger Brands International Holdings Limited 266,9 266,9
Enterprise Foods Proprietary Limited 0,4 0,4
Langeberg Holdings Limited 500,8 500,8
Langeberg & Ashton Foods Proprietary Limited 499,5 499,5
Tiger Food Brands Intellectual Property Holding Company Proprietary Limited 329,6 313,5
Pharma I Holdings Proprietary Limited 1 211,2 1 211,2
Pharma II Investments Proprietary Limited 99,6 99,6
Chocolaterie Confiserie Camerounaise 51,6 55,6 130,7 145,3
Tiger Brands Nigeria Limited 3,1
Current receivable 51,6   130,7  
Current payable (48,9)   (32,1)  
Non-current loans receivable1 2 944,1   2 924,9  
Empowerment entities        
Tiger Brands Foundation 84,6 154,1 180,3
Thusani II 12,4 29,3 34,5
National Foods Holdings Limited 11,8 8,7

1 Interest free with no fixed repayment terms. These balances are not expected to be called upon within the next 12 months.

In assessing the credit risk of intercompany transactions, the company considers the liquidity position, available cash resources and the industry. These factors are considered to give rise to a low credit risk and therefore, no further disclosure is required.