INTEGRATED ANNUAL REPORT 2024

for the year ended 30 September 2024

Our business model

Necessary 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, electricity, 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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Significant relationships

  • Employees and trade union partners
  • Customers
  • Consumers
  • Government
  • Investors
  • Suppliers
  • Communities
  • Media

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Our operating environment

Trends impacting value:

  • Continuing macro-economic uncertainty, globally and locally
  • Shifting customer and consumer dynamics
  • A changing competitive landscape
  • Climate change and sustainability-related pressures

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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, snacks and treats. Our product portfolio is well placed to grow our presence in most categories and markets through further innovation and in organic opportunities.

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Our value chain activities

Growth opportunities

  • Opportunities in accessing informal market (here)
  • Changing consumer expectations on affordability, nutrition, accessibility (here)
  • Improved consumer-centric product and brand portfolio (here)
  • Rejuvenating our brands (here)

Our revenue streams

Our revenue streams comprise product sales from:

  • Milling & Baking (22%)
  • Grains (23%)
  • Snacks, Treats and Beverages (15%)
  • Culinary (24%)
  • Home, Personal Care & Baby (10%)
  • International (6%)

Material revenue differentiators

  • Long-standing market-leading position in branded food and beverages
  • Our 10 “power brands” and 6 “specialist brands”, many of which are ranked 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
  • Employee wages and benefits
  • Food quality and safety
  • Electricity and fuel
  • Regulatory compliance costs

Material cost differentiators

  • Our vertical supply chain
  • Standardisation and simplification of group processes, systems and practices
  • Decentralised procurement of unique materials
  • Centralised procurement of group-wide materials, leveraging economies of scale

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. Price/volume management is therefore a key strategic lever.

Variable Impact*
R million
Forex (sensitivity to 5% weaker rand)  
Domestic operations** (305,0)
International and associates translation 59,7
Exports (93,2)
Price increases  
Effect of a 1% movement in price increases  
Up 328,1
Down (328,1)
Volume growth  
Effect of a 1% movement in volume growth  
Up 305,8
Down (305,8)
Logistics***  
R1 increase per litre of fuel (R25,0)
* Impact on operating income
** Assumes no recovery in price
*** Excludes Bakeries

Value out

Our products (outputs)
  • Milling & Baking
  • Culinary
  • Grains
  • Home, Personal Care & Baby
  • Snacks, Treats and Beverages

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Our outcomes

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