R8,9 billion
Revenue
2023: R8,4 billion
Our ambition
By empowering our people and leveraging the strength of our loved brands, we will reshape our portfolio to align with market demands, becoming cost leaders through value re-engineering, and increasing our participation in everyday meal occasions by providing affordable "Plus Foods" – quality ingredients and food that elevate and stretch meals or snacks.
R8,9 billion
Revenue
2023: R8,4 billion
R0,82 billion
Operating income
2023: R0,54 billion
9%
Operating margin
2023: 6%
Under the new federated operating model leadership and new leadership team, the business has delivered strong performance, recovering well in the second half of the year following weather-related challenges earlier in the reporting period with raw material shortages in key product lines. Revenue was up 5% to R8,9 billion, and overall operating income increased 51% to R819 million following successful execution of value engineering initiatives.
We have placed a strong focus this year on embedding the new operating model and organisational culture, deepening our relationships with customers, and unlocking margins through business simplification, value engineering in recipes and packaging, enhanced distribution efficiencies and SKU rationalisation. We have developed and are executing our brand rationalisation and migration strategy, focusing our investments to accelerate growth in three prioritised power brands and three specialist brands. By reducing our SKUs by 20%, we will be delivering substantial efficiencies, maximising our cash flow and improving profit margins by reducing complexity and factory prioritisation and streamlining our inventory processes.
We are driving identified growth platforms in affordable protein, convenient vegetables and every-day meal solutions, prioritising opportunities for the cash-strapped consumer through our innovations in recipes, packaging and price-pack architecture, and pack configuration. We have also made pleasing initial progress in accelerating growth in the traditional trade and expanding our presence in general trade, as well as upweighting our e-commerce contribution.
Although we anticipate further possible weather-related disruptions in the local availability of certain raw materials, such as white beans, we have strengthened our procurement practices, decentralising decision-making to bring it closer to the business and broadening the geographic reach of our supplier base to reduce supply chain uncertainties. We are also exploring opportunities for strengthened partnerships with local farmers through the Tiger Brands Dipuno Fund, to combat food security challenges and decrease dependence on imported raw materials.