During the period 1970 to 1980, Tiger Oats and National Milling Co acquired 36 bakeries to form Albany Bakeries.
FINANCIAL PERFORMANCE
Milling and Baking delivered a remarkable performance, reflecting exceptional execution of its strategy, enabled by investments in route-to-market software providing real-time data, which increased the team's ability to implement strategic pricing initiatives. The turnaround has been supported by targeted investments in equipment upgrades – to restore bakery stability, reduce damages, and improve bread and supply chain quality – as well as investments in optimising our fleet and route-to-market.
Revenue for the year was up 5.3% to R8.6 billion, driven by volume growth of 7.9%, and price deflation of 2.6%. Operating income improvement of 26.8% to R761 million was achieved through improved factory efficiencies and labour optimisation and targeted pricing strategies, supported by favourable wheat input costs. Bakeries value and volume market share improved in modern trade for the full year, reflecting the impact of our pricing strategies and product quality, partially offset by a slight decline in general trade volumes.
Our growth strategy remains largely unchanged with a continued focus on further strengthening manufacturing reliability, product quality, customer service levels, creating highly skilled teams at all levels and instilling a strong performance-based culture. To unlock value in underpenetrated markets and channels, we are refining our regional growth strategies, optimising our route-to-market, strengthening our presence and executing focused promotional campaigns.
We will continue to work on gaining market share through micro-market pricing strategies, enhanced use of business intelligence and technologies, and driving affordability and, health and nutrition. The commissioning of our super bakery towards the end of the 2026 calendar year is an important cornerstone in our goal of becoming the lowest-cost bread producer in South Africa, delivering superior products and service to our consumers.
