| 33 |
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 Nigeria and Zimbabwe, the expected timing of receipt of the amounts owing from these related
parties has been assessed. As a result, the outstanding balances from these entities have been fully impaired.
Details of material transactions with related parties not disclosed elsewhere in the financial statements are as follows:
| |
| (R'million) |
Management
fees |
|
Directors
fees |
| 2022 |
|
|
|
| Related party – Associates |
|
|
|
| Empresas Carozzi*** |
– |
|
4,0 |
| National Foods Holdings Limited |
3,8 |
|
– |
| 2021 |
|
|
|
| Related party – Associates |
|
|
|
| Empresas Carozzi*** |
– |
|
4,3 |
| National Foods Holdings Limited |
3,6 |
|
– |
| |
| (R'million) |
2022 |
|
2021 |
| Other related parties |
|
|
|
| Key management personnel* |
|
|
|
| Short-term employee benefits** |
152,1 |
|
140,0 |
| Post-employment and medical benefits |
9,6 |
|
9,6 |
| Share-based payments |
0,7 |
|
– |
| Total compensation paid to key management personnel |
162,4 |
|
149,6 |
| * |
Key management personnel comprise the top tier of the organisation and the managing executives of the individual businesses. |
| ** |
During the year certain key management personnel were paid retention bonuses. An upfront payment is made with a two-year lock-in provision. Total of
retention bonuses paid in 2022 amounts to R24,6 million, total expenses in employee costs amounts to R10,2 million and total prepayment amounts to
R14,4 million. |
| *** |
Relates to group and company. |
| |
2022 |
2021 |
| (R'million) |
| COMPANY |
|
|
|
|
| Related party – intergroup |
|
|
|
|
| Subsidiaries |
|
|
|
|
| Durban Confectionery Works Proprietary Limited |
33,0 |
– |
33,0 |
– |
| Tiger Consumer Brands Limited |
(69,9) |
1 184,5 |
(48,9) |
1 570,0 |
| Tiger Brands International Holdings Limited |
– |
637,2 |
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 |
349,8 |
– |
329,6 |
– |
| Pharma I Holdings Proprietary Limited |
1 211,2 |
– |
1 211,2 |
– |
| Pharma II Investments Proprietary Limited |
– |
– |
99,6 |
– |
| Chocolaterie Confiserie Camerounaise |
85,0 |
92,0 |
51,6 |
55,6 |
| Tiger Brands Nigeria Limited |
– |
– |
3,1 |
– |
| Current receivable |
85,0 |
|
51,6 |
|
| Current payables |
(69,9) |
|
(48,9) |
|
| Non-current loans receivable1 |
2 594,7 |
|
2 944,1 |
|
| Empowerment entities |
|
|
|
|
| Tiger Brands Foundation |
207,8 |
180,7 |
84,6 |
154,1 |
| Thusani II |
32,5 |
34,1 |
12,4 |
29,3 |
| Associate |
|
|
|
|
| National Foods Holdings Limited |
– |
12,5 |
– |
11,8 |
| 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.
|
