Our business model

KEY RESOURCES


	HC	Experienced, diverse leadership team and skilled employees, underpinned by strong governance structures
	NC	Reliable and sustainable access to primary agricultural products (including wheat, rice, maize, oats, sugar and sorghum), other ingredients, packaging, energy, fuel and water
	MC	Well-capitalised manufacturing plants, supported by efficient and effective supply chain, distribution and logistics networks
	SRC	Strong and trusted corporate brand, positive supplier and customer relations, and constructive relationship with government, regulators and host communities
	IC	Continuous investment in our brands through research and development, marketing investment, and innovation informed by strong consumer insights
	FC	Access to financial capital, through strong cash generation and enhanced by superior investor returns and sustained market confidence

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	KEY RELATIONSHIPS
	Employees and trade union partners Customers Consumers Government Investors Suppliers Communities






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	OUR OPERATING ENVIRONMENT
	Trends impacting value:
	An unsettled global and regional macro-economic environment Profound socio-economic challenges in South Africa impacting consumer confidence An increasingly competitive market responding to shifting consumer dynamics Digital technologies and e-commerce The rising impact of ESG and sustainability-related considerations




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Tiger Brands creates value and delivers on its purpose by producing, marketing, and distributing everyday branded food, home and personal care products, predominantly in South Africa, with a growing market presence across Africa. Our core category is food with immediate adjacencies in beverages and snacks and treats. Our product portfolio is well-placed to grow presence in most occasions with further innovation or inorganic opportunities possible.

MATERIAL RISKS

1.1 Market responsiveness

1.2 Cost competitiveness

2.1 People security

2.2 People safety

2.3 Food safety

2.4 Cyber security

2.5 Consumer preferences

2.6 Third-party supplier risks

2.7 Industrial action

2.8 Insufficient electricity supply

2.9 Security of food supply

Climate change: a particular risk type Read more here.

GROWTH OPPORTUNITIES

OUR REVENUE STREAMS

Our revenue streams comprise product sales from:

Grains (46%)
Exports and International division (12%)
Consumer Brands (36%)
Home and Personal Care (6%)

Material revenue differentiators

Long-standing market-leading position in branded food and beverages
Our Billion Rand Brands, many of which are rated first or second in their categories
Robust marketing strategy, ensuring our brands remain top-of-mind, supported by targeted investment
Far-reaching distribution capabilities
The strength and quality of our customer relationships
Strong consumer insights informing our category strategies

OUR COST STREAMS

Our most significant cost streams are:

Raw material procurement
Sales and distribution expenses
Marketing expenses
Maintenance and upgrading of plant and equipment
Food quality and safety
Employee wages and benefits
Electricity and fuel
Regulatory compliance costs

Material cost differentiators

Our vertical supply chain
Standardisation and simplification of group processes, systems and practices
Centralised procurement function leveraging scale, internally and externally

SENSITIVITY ANALYSIS

Tiger Brands’ cost base is highly sensitive to exchange rate volatility, with ~70% of our costs directly or indirectly exposed to exchange rates.

Variable		Impact*
Forex (sensitivity to 5% weaker rand)
Domestic operations**		(R586 million)
International and associates translation		R66 million
Exports		R30 million
Price increases
Effect of a 1% movement in price increases
Up		R402 million
Down		(R402 million)
Volume growth
Effect of a 1% movement in volume growth
Up		R112 million
Down		(R112 million)
Logistics
R1 increase per litre of fuel		(R38 million)

*	Impact on operating income
**	Assumes no recovery in price

VALUE OUT


	Our products (outputs)







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	OUR OUTCOMES
	Significant impacts (positive and negative) include:
	Consumer nutrition and health Natural resource use and habitat impact from raw materials Energy and water use in manufacturing operations Food and packaging waste Employment (direct and indirect) and associated benefits Development of small businesses Government tax revenue Financial returns to shareholders Investment in infrastructure, plant and equipment