Tiger Brands Limited

Integrated annual report


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How we sustain value

  Social and relationship capital       Our people       Our brand, reputation and company culture       Manufactured capital       Financial capital       Natural resources capital  
  MATERIAL INPUTS                                          
  • Engaged workforce
  • Constructive relationship with government
  • Investor confidence
  • Trusted brands and strong consumer reputation
  • Positive supplier and customer relations
  • Robust operating context and strong levels of institutional trust
  • Strong and diverse board
  • Experienced executive team
  • 9 670 permanent employees
  • Enabling workplace environment with performance- and purpose-led culture
  • Historically strong brand and reputation
  • Unique product formulations and trusted recipes
  • Research and development capacity
  • Internal governance and business systems
  • Company culture
  • 41 manufacturing facilities
  • Efficient logistics and distribution activities
  • Equity
  • Borrowings
  • Cash generated from operations
  • Local and imported raw material ingredients
  • Water (municipal and own borehole) for production
  • Fuel (diesel and petrol) for distribution and manufacturing
  • Energy for manufacturing (primarily Eskom electricity)
  • Fertile soil and conducive agricultural conditions
  OUR ACTIONS TO SUSTAIN VALUE                                          
  • Investment in employee value proposition
  • Structured engagement with regulators; focus on compliance and societal contributions
  • Regular investor communication
  • Investment in product safety and quality
  • Product and process innovation
  • Active engagement with suppliers and customers
  • Trading terms that are fair, equal and available to all customers
  • Implementing people strategy to build a diverse talent base, develop leadership capacity and create a great place to work
  • Invested in employee reward and personal development opportunities
    • R4,3 billion on wages and benefits
    • R97 million invested in employee training and development (2021: R94 million)
  • Focus on diversity and employment equity
  • Embedded enhanced employee wellbeing programme (THRIVE)
  • Focus on innovation and renovation to meet consumer needs including on value, health and nutrition, convenience, e-commerce and sustainability
  • Deploy marketing best practice toolkit across the business
  • Drive relevance in value segment by building clear benefits of current brands
  • R961 million capital expenditure in manufacturing and distribution capability and technology
  • Completed the development and approval of a comprehensive digital strategy
  • 9% improvement in overall equipment effectiveness (OEE) across our focus sites over past three years
  • Achieved R354 million in savings through improved material usage variance (MUV) over past three years
  • Implementation of fit-for-future operating model with clear lines of accountability
  • Continued operational efficiency drive
  • Strong corporate governance structures
  • Acceleration of portfolio optimisation
  • Clear guiding principles in response to the growth of private label
  • Energy and water efficiency measures
  • Investment in renewable energy to strengthen energy security and reduce carbon footprint
  • Innovations and partnerships to reduce packaging and food waste
  OUTCOMES OF OUR ACTIVITIES                                          

Generally positive relations across stakeholder groups

14% reduction in consumer complaints
R14 billion B-BBEE supplier spend
R1,3 billion spent to support black farmers and small businesses

Continuing concerns in certain areas

× Product recall of certain baby powder products
× Pending listeria Class Action lawsuit

Investment in talent and personal development

Accelerated core capability in manufacturing, customer, marketing and R&D
Launched accelerated leadership development programme

Progress in promoting employee diversity

94% ACI and 31% female
Eliminated historical wage and salary income differentials ahead of target

Board diversity

67% black and 60% female on our board
Directors with extensive FMCG knowledge, global experience and skills in digitalisation and innovation

Focus on improved employee health and safety going forward

× Three work-related fatalities (2021: 0)
× 0,45 lost-time injury frequency rate (2021: 0,31) driven by improved reporting to consistently include contractor injuries

Sustained a strong brand presence

Completed purpose journeys on majority of our major brands with evident impact
Won Kantar award for Best Liked Ad in 2021 (Tastic Rice)

Innovation launches

Completing 21 innovation projects across our consumer growth areas, achieving a R1,1 billion (4,2%) innovation rate
First Venture Capital Fund investment – in plant-based vegan start-up

Continued investment in plant and equipment

Expand capacity, optimise efficiency, upgrade infrastructure and realise innovation opportunities

Some challenges remain

× Capex disbursement below guidance
27,7% return on net assets (RONA) (2021: 19,3%)
R75 million paid in net interest (2021: R54 million)
R2,6 billion cash generated from operations (2021: R4,0 billion)
Savings of R387 million (2021: R498 million)
Total dividend per share declared: 973 cents (2021: 826 cents)
18,4% return on equity (2021: 12,7%)
ROIC of 16,4% exceeds the average weighted cost of capital of 13,6% (2021: 11,7%<12,2%)

Some progress in mitigating impacts

13% reduction in direct GHG emissions
13% reduction in GHG emissions intensity
7% reduction in absolute energy use
8% reduction in electrical energy intensity
8% reduction in absolute water use
7% reduction in water-use intensity
32% reduction in waste to landfill intensity

Challenges remain in certain areas

× The global food system is recognised as having a significant impact on biodiversity and habitat loss, climate change and packaging pollution, placing direct pressure on the resources we depend on and, increasing consumer and regulatory practices
Read more here and in the Sustainability report 2022