Tiger Brands | Annual Financial Statements 2025 - Guarantees and contingent liabilities

Guarantees and contingent liabilities

(R'million)		2025		2024
Guarantees (unutilised)		38		61

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company. Contingent assets are not recognised as assets, but disclosed. There were no contingent assets identified during the current year (2024: none).

A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company. Alternatively, it may be a present obligation that arises from past events but is not recognised because an outflow of economic benefits to settle the obligation is not probable, or the amount of the obligation cannot be measured with sufficient reliability. Contingent liabilities are not recognised as liabilities unless they are acquired as part of a business combination, but disclosed.

Contingent liabilities

The class action against the group arising from the outbreak of listeriosis was certified by the High Court (Gauteng Local Division, Johannesburg) on 3 December 2018. Summons was issued against Tiger Brands on 16 April 2019. The group filed its plea on 8 August 2019, which was subsequently amended in May 2024 following amendments to the plaintiffs' particulars of claim effected in January 2024.

Since the decision of the Supreme Court of Appeal (SCA) handed down on 4 February 2022, which overturned the June 2020 decision of the High Court compelling various third parties, including the National Institute for Communicable Diseases (NICD), the South African Bureau of Standards, two accredited national laboratories and select meat producers, to provide epidemiological information required for the class action lawsuit, the parties have continued to attend to pre-trial preparations, including discovery of documents and records relevant to the class action in terms of the Rules of Court, in order to get the matter ready for trial for the court to determine liability. A trial date will be allocated by court once all these pre-trial preparations have been completed.

During April 2025 and on the authority of the group's lead reinsurer having primary conduct of the defence of the class action, the attorneys representing the group and its insurers (the "group's attorneys") presented to the plaintiffs' attorneys settlement offers to specific named persons who suffered damage as a result of listeriosis caused by genotype L1-St6- ST6-CT4148 of Listeria monocytogenes (ST6), who are members of classes of claimants, namely (i) claimants who contracted (or whose mothers contracted) listeriosis caused by ST6; (ii) claimants whose legal breadwinners, on whom they were legally dependent, died of listeriosis caused by ST6, and (iii) claimants whose legal breadwinner, on whom they were in their case, and who contracted listeriosis caused by ST6.

Engagements between the legal representatives of the parties are continuing with regard to the terms of a possible settlement with a view to finding a means to bring finality to the class action litigation.

The interim relief payments authorised by the group's insurers during February 2025 have since been made to confirmed claimants or their custodians subject to agreed criteria and conditions. Outside of those payments made, the group's insurers have also agreed to extend further interim payments to additional claimants with urgent medical needs who meet agreed criteria. Although not legally obligated to make interim payments at this stage of the class action, the decision to do so underscores the group's and its insurers commitment to achieve a just resolution of the listeriosis class action as soon as possible.

The group is committed to working diligently to bring the listeriosis class action to a close as speedily as possible.

The group has product liability insurance cover appropriate for a group of its size. Coverage is subject to the terms and limits of the policy. The group's insurers have advised that the product liability policy does not include cover for exemplary or punitive damages should such an award be made by the court. Should such an award be made (or for constitutional damages), the product liability policy will not cover that portion of the award which relates to damages which are not compensatory in nature. The group has reserved its rights in this regard.