20
22

Tiger Brands Limited

Integrated annual report

NOTICE OF AGM

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OPERATIONAL REVIEW

HOME AND PERSONAL CARE (HPC)

OVERVIEW

Overall revenue in HPC declined by 5% to R1,9 billion, primarily due to lower volumes in the pesticides segment within Home Care. This, together with a significant cost-push, resulted in operating income declining by 29% to R308 million.

 

Grains

Personal Care’s revenue increased by 4% to R672 million as a result of price inflation of 12%, offset by volume declines of 8%. Despite improved profitability in the second half, significant increases in ingredients and packaging costs, as well as an adverse product mix, resulted in operating income declining by 66% to R16 million.

Home Care was unable to recover from a poor start to the year as unfavourable weather conditions impacted category demand for pesticides. Revenue declined by 9% to R1,2 billion, due to 17% lower volumes, offset by price inflation of 8%. Lower volumes, together with higher raw material and packaging costs, resulted in operating income declining by 24% to R292 million.


FINANCIAL HIGHLIGHTS
  • Revenue

    Down 5%

    R1,9bn

    2021: 2,0 billion

  • Operating income

    Down 29%

    R308m

    2021: 433 million

  • Operating margin

     

    16,6%

    2021: 22,2%


LOOKING AHEAD
  • Price management to protect margin
  • Continued focus on factory efficiencies
  • Execution of key capex projects: warehouse upgrade and aerosol replacement project
  • Successfully deliver innovation focusing on functional benefits