Tiger Brands delivered a strong full-year performance, with quality earnings growth and continued cash generation demonstrating disciplined operational excellence and effective execution of our turnaround strategy, against a backdrop of constrained consumer spending. The company ended the year with volume growth ahead of guidance, double-digit operating margin and declaration of a R4.0 billion special dividend to shareholders.
On a full-year basis, revenue was up 2.7% on the prior year to R34.4 billion, driven by 3.5% volume growth and overall price deflation of 0.8%. Volume growth was ahead of our short to medium-term guidance, reflecting the impact of strategic pricing initiatives in Milling and Baking, Grains and Culinary.
Overall gross margin increased 2.2% to 31.3% on a comparable basis, off the back of value engineering savings on recipes and packaging, as well as factory efficiencies from labour optimisation and increased volume throughput in key categories. The group’s operating income (before impairments, fair value losses and non-operational items) was up 35.0% to R3.8 billion, driven by topline growth and with continuous improvement (CI) initiatives delivering ahead of guidance. Double-digit operating margin at 11.1% was ahead of guidance, up 2.6% on the prior year.
The decrease in income from associates to R376 million (2024: R724 million) is reflective of the company’s portfolio optimisation strategy, which saw the disposal of Chilean associate Carozzi in February 2025. Net finance income for the year was R65 million, down from net finance costs of R287 million in FY24, due to the group being in a net cash position for most of the year. The group’s effective tax rate, before fair value losses, non-operational items and income from associates increased marginally to 28.0% compared to 27.7% in FY24.
Earnings per share (EPS) from total operations increased by 30% to 2 482 cents per share, while headline earnings per share (HEPS) from total operations was up by 15% to 2 056 cents per share. The variation between HEPS and EPS mainly relates to profit on the disposal of the non-core Baby Wellbeing division and of associate Carozzi. On a continuing operations basis, EPS increased by 50% to 2 662 cents per share and HEPS increased by 31% to 2 141 cents per share. This increase in earnings was impacted by the disposals during the period. It is important to note that Carozzi earnings for the year to February 2025 and the Baby Wellbeing trading results to the end of the first half (H1 25) are included in continuing operations. Discontinued operations for the period included Randfontein operations (Maize and Wheat Milling), Langeberg and Ashton Foods (LAF) and Chococam.
STRONG OPERATING PERFORMANCE REFLECTING DISCIPLINED EXECUTION OF TURNAROUND STRATEGY
We saw pleasing performance across all our business units this year, with the federated operating model now fully embedded. Our cost leadership agenda remains central and enabled us to deliver ahead of guidance, driven by logistics optimisation, recipe conversions, packaging light-weighting and factory efficiencies. Waste reduction and labour optimisation added further savings.
Together, these initiatives have strengthened margins while allowing us to keep prices competitive. The success of our strategic pricing is reflected in Tiger Brands’ defined basket inflation for 12 months moving (12mm) and six months moving (6mm). For both these periods, Tiger Brands inflation lagged the market and therefore drove affordability and relevance of our products.
In Milling and Baking, revenue was up by 5.3% to R8.6 billion, driven by volume growth of 7.9% and price deflation of 2.6% primarily from wheat.
Operating income increased by 26.8% to R761 million and margins increased by 1.5% to 8.8% versus prior year. This increase was largely driven by H2 25 momentum of strategic initiatives implemented and factory efficiencies. Continued focus to reduce damages and returns, further enabled profit improvement.
Grains’ revenue increase of 1% to R7.1 billion was driven by 6% volume growth, offset by price deflation of 5% due to deflation in soft commodities. The volume growth was driven by continued investment behind focus brands and diligent price management accredited to strategic procurement.
Operating profit improvement versus prior year of 236% to R736 million, and margin improvement of 7.3% to 10.4% was driven by strategic price management, factory efficiencies, as well as logistics optimisation initiatives which delivered ahead of expectations.
Culinary’s revenue increased by 3.1% to R10.2 billion, driven by 3.2% volume growth reflecting the impact of targeted strategic initiatives in the condiments category and markedly improved service levels in the second half of the year (H2 25).
Operating income at R1.07 billion was 11.4% higher than the prior year, with operating margin up 0.8% at 10.5%. Improved operating income was driven by CI initiatives across the supply chain.
Revenue for the Snacks, Treats and Beverages business was up by 3.1% to R6.0 billion, driven by 6.9% price growth. Revenue growth was driven by Snacks and Treats (S and T), with Beverages delivering acceptable performance despite significant deep discounting that led to consumers increasing spend in the carbonated soft drinks category.
Operating profit for the business improved by 13.7% to R820 million, with operating margin up by 1.3% to 13.7%. This strong performance reflected improved labour optimisation from time and motion initiatives across both categories, as well as relief in global orange concentrate pricing that positively impacted beverages.
Home and Personal Care (HPC) revenue declined by 3.8% to R2.6 billion on a reported basis; on a continuing basis, adjusting for discontinued SKUs and non-core brands, HPC revenue grew by 6.4%. There was compelling H2 25 recovery from Home Care (HC) in the pest category, coming off can supply constraints experienced in H1 25. The export channel remains a key lever for growth for HPC, with Personal Care (PC) gaining traction in neighbouring markets and HC’s potential being actively explored. The export channel remains a key lever for growth for HPC, with PC gaining traction in neighbouring markets and HC’s potential being actively explored.
Operating income at R526 million for FY25 was 5.9% lower than the prior year, with notable recovery within the local HC business in H2 25, despite supply challenges on aerosol cans experienced in H1 25.
PROGRESS WITH PORTFOLIO OPTIMISATION
There was considerable progress on the company’s portfolio optimisation strategy in FY25.
During the year, we announced the completion of the Carozzi and Baby Wellbeing disposals, the responsibly managed sale of Langeberg and Ashton Foods and the signing of the sale and purchase agreement to dispose of our chocolate subsidiary in Cameroon (Chococam).
The Randfontein Operations (Wheat Mill and Maize business) transaction announced in May 2025 is currently with the Competition Tribunal for approval, with envisaged completion in H2 26. Our remaining non-core operations of select categories within the Beacon chocolate division and the King Food sorghum business are included in continuing operations, where we are committed to driving growth and margin expansion until such time that an executable value realisation plan has been established.
CASH FLOW AND CAPITAL EXPENDITURE
Improved working capital management contributed R1.2 billion cash inflow, compared to a R746 million inflow in the prior year. This supported cash generated from operations increasing by R1.6 billion to R7.1 billion (2024: R5.5 billion). The group ended the period with a cash position of R3.2 billion, which was R1.8 billion higher than FY24. The group achieved a notable cash conversation ratio of 90% for FY25, which was 6% higher than prior year of 84%.
Capital expenditure for the period amounted to R1.2 billion (prior year R970 million), stepping up considerably in H2 25.
DISCIPLINED CAPITAL ALLOCATION
We remain disciplined in our approach to capital allocation, underpinned by driving shareholder value. Our capital allocation framework is clear that once internal capital requirements are fully funded, there are three avenues that management considers in returning excess capital to shareholders: share buy-backs, special dividends and a review of the ordinary dividend cover.
To that end, management embarked on a share buy-back programme, having received the necessary shareholder authority at the AGM held on 20 February 2025. As of 30 September 2025, R1.5 billion had been deployed resulting in the repurchase of 5.5 million shares.
The ordinary dividend cover was revised downwards from 1.75x to 1.25x, with management satisfied that this level of divided cover is sustainable for the foreseeable future given current business requirements.
These carefully considered capital allocation decisions underscore our deliberate intent to finding the optimal balance between driving shareholder returns, optimising our capital structure and fostering sustainable growth.
FINAL ORDINARY DIVIDEND
The company declared a final ordinary dividend of 1 229 cents per share for the year ended 30 September 2025. This, together with the interim dividend of 415 cents per share, brings the total dividend for the year to 1 644 cents per share, a 59% increase relative to FY24.
SPECIAL DIVIDEND
Aligned to the decision to return excess cash arising from the portfolio optimisation disposals to shareholders, as well as improved working capital management and after funding the share repurchase programme, the company has declared a final special dividend of 2 710 cents per share for the year ended 30 September 2025. This, together with the interim special dividend of 1 216 cents per share brings the total special dividend for the year to 3 926 cents per share.
OUTLOOK
Our turnaround strategy is delivering well, with key structural investments over the next two to three years laying the foundation for the next phase of growth. In the short to medium term, the broader socio-economic backdrop – high unemployment, political uncertainty and consumer pressure – remain headwinds we can manage, driven by our clearly articulated “self-help” initiatives and we are therefore confident in our ability to deliver on our guidance. In addition, our disciplined procurement approach and capital allocation framework leave us well positioned to navigate uncertainty and capture opportunity.
Thushen Govender
Chief financial officer
December 2025
