INTEGRATED ANNUAL REPORT 2023
For the year ended 30 September 2023
For the year ended 30 September 2023
Tiger Brands is one of Africa’s largest listed manufacturers of fast-moving consumer goods (FMCG). Our core business is the manufacture, marketing and distribution of everyday branded food and beverages.
Our products are relevant across every meal occasion and are well-positioned to grow. The portfolio also includes leading brands in the home and personal care segments, supported by a growing presence in Africa.
Our strategy for sustainable profitable growth is supported by six strategic pillars, underpinned by our core values.
The value created, preserved, or eroded for our stakeholders in 2023.
| FINANCIAL PERFORMANCE | |||
| Revenue | 10% | ||
| R37,4 billion | |||
| 2022: R34,0 billion | |||
| Group operating income* | 9% | ||
| R3,1 billion | |||
| 2022: R3,4 billion | |||
| EPS | -2% | ||
| 1 725cps** | |||
| 2022: 1 762cps | |||
| HEPS | 2% | ||
| 1 735cps** | |||
| 2022: 1 702cps | |||
| Final dividend | 3% | ||
| 671cps** | |||
| 2022: 653cps | |||
| Total dividend | 2% | ||
| 991cps** | |||
| 2022: 973cps | |||
| * Before impairments, fair value losses and operational items |
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| ** Cents per share |
Ingram’s Moisture Plus Body Cream on the packaging line at the Tiger Brands Home and Personal Care manufacturing plant in Isando.
| DELIVERY OF VALUE BY STAKEHOLDER GROUP | ||||
| Providers of financial capital | Customers (retailers, wholesalers, and general trade) | Communities | ||
| R1,6 billion paid in dividends (2022: R1,4 billion) |
98% on-shelf availability (2022: 97%) |
R70 million total socio-economic development spend (2022: R26 million) |
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| Return on equity 15,7% (2022: 18,4%) |
91% order-fill (2022: 88%) |
14 million breakfasts served by The Tiger Brands Foundation, reaching 74 109 learners (2022: 10 million breakfasts to 74 177 learners) |
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| Return on net assets 21,7% (2022: 27,5%) |
Consumers | |||
| 31 innovation projects launched this year (2022: 21) |
Suppliers | |||
| R18 billion spend with B-BBEE-verified suppliers (2022: R14 billion) |
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| Return on invested capital* 14,7% (2022: 16,4%) |
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| 28,4% value share (2022: 28,2%) |
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| R7 billion spend with black-owned enterprises (2022: R7 billion) |
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| Cash generated from operations R2,7 billion (2022: R2,7 billion) |
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| Expanded our reach in the booming South African informal sector, securing 50 000 general trade stores since inception |
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| R6 billion spend with black women-owned enterprises (2022: R5 billion) |
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| Employees | ||||
| R4,5 billion paid in salaries and benefits to 9 296 permanent employees (2022: R4,3 billion to 9 670 employees) |
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| Four awards in the MMASmarties Award* |
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| R93 million invested in employee training and development (2022: R97 million) |
Fatti’s & Moni’s “Always Eat’alian” TV commercial won a Silver Loerie Award |
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| One fatality (2022: three) |
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| * | Honours for effective modern marketing in South Africa | |||
| * | Source: Circana 12-month moving data to September 2023 |
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| Equity rank | #1 |
| Volume rank | #1 |
| Value rank | #1 |
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| Equity rank | #1 |
| Volume rank | #1 |
| Value rank | #1 |
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| Equity rank | #3 |
| Volume rank | #2 |
| Value rank | #2 |
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| Equity rank | #3 |
| Volume rank | #4 |
| Value rank | #3 |
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| Equity rank | #2 |
| Volume rank | #1 |
| Value rank | #1 |
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| Equity rank | #1 |
| Volume rank | #1 |
| Value rank | #1 |
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| Equity rank | #1 |
| Volume rank | #1 |
| Value rank | #1 |
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| Equity rank | #2 |
| Volume rank | #2 |
| Value rank | #2 |
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| Equity rank | #1 |
| Volume rank | #1 |
| Value rank | #1 |
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| Equity rank | #1 |
| Volume rank | #1 |
| Value rank | #1 |
The informal market in South Africa is valued at approximately R150 billion a year. We are pursuing various initiatives to expand our reach in this market and have reached 50 000 stores with the aim to expand our presence to 130 000 stores over the next five years.
Innovation should be viewed through the dual lens of both continuous improvement and product innovation. We need to ensure the continuing relevance of our products – informed by an assessment of their cost, taste and overall value proposition. Once we have ensured that the core business remains relevant, we will explore opportunities to introduce new products in our three prioritised growth platforms: driving affordability, democratising health and nutrition, and snackification.
We aspire to be a pan-African business with a South African head office. The past year has seen a step change in trajectory for the Rest of Africa business, with Exports reporting a marked improvement across all key metrics, namely volumes, revenue and profitability. This has been driven by the rejuvenation and remodelling of our key distributor model, allowing for improved visibility and availability of our brands. With the foundation stabilised, the business is well-positioned for growth.