Tiger Brands | Integrated Annual Report 2025

HOW WE SUSTAIN VALUE

The table below reviews the various dependencies and impacts on the critical resources and relationships that Tiger Brands relies on to create and share value.

Material Inputs

Engaged workforce
Constructive relationship with government
Investor confidence
Trusted brands and strong consumer reputation
Positive supplier and customer relations
Robust operating context and strong levels of institutional trust

Challenges in securing inputs

Finding the right balance in addressing the sometimes competing interests of stakeholders, each of whom add value to the company

Our actions to sustain value

Investment in employee value proposition
Structured engagement with regulators; focus on compliance and societal contributions
Regular investor engagement
Investment in product safety and quality
- Product and process innovation
- Active engagement with suppliers and customers
Trading terms that are fair, equitable and available to all customers

Outcomes of our activities

Generally positive relations across stakeholder groups, reflected by:

4% reduction in consumer complaints
R14.4 billion B-BBEE supplier spend
R5.7 million spend to support qualifying black-owned enterprises
Year-on-year HEPS growth of 31.3% (continuing operations)
Year-on-year ordinary dividend growth of 59.0%
Improved sentiment in media coverage on listeriosis class action lawsuit (see here for progress made on listeriosis class action in FY25)

Material Inputs

Strong and diverse board
Experienced executive team
8 721 permanent employees
Enabling workplace environment with performance- and purpose-led culture

Challenges in securing inputs

Technical skills shortages
Increased cost of attracting and retaining skills
Changing employee career expectations and priorities

Our actions to sustain value

Implementing people strategy to attract, retain and develop a diverse talent base, with strong leadership capacity
Invested in employee reward and personal development opportunities
R4.5 billion on wages and benefits
R85.3 million on employee training and development
Focus on diversity and employment equity
Embedded enhanced employee wellbeing programme (THRIVE)

Outcomes of our activities

Investment in talent and personal development

Development of core capabilities in manufacturing, customer, marketing and R&D
Accelerated leadership development programme

Progress in promoting employee diversity

62.7% representation of Africans, Coloured and Indians (ACI) at senior management and 54.5% at top management
40.3% female representation at senior management and 18.2% at top management

Board diversity

50% black and 40% female on our board
Directors with extensive FMCG knowledge, global experience and skills in digitalization and innovation

Improvements in employee health and safety

Two work-related fatalities (2024: 1)
0.10 lost-time injury frequency rate (2024: 0.19)

Material Inputs

Established strong brand and reputation
Unique product formulations and trusted recipes
Research and development capacity
Internal governance and business systems
Company culture

Challenges in securing inputs

Constrained consumer environment favouring affordability over brand
Increased retailer concentration and growing role of private label
High prevalence of promotional activity

Our actions to sustain value

Focus on innovation and renovation to meet consumer needs including on value, health and nutrition, convenience, e-commerce and sustainability
Deploy marketing best practice toolkit across the business
Drive relevance in value segment by building clear benefits of current brands

Outcomes of our activities

Sustained a strong brand presence
Most of our 16 “Focus Brands” maintained their brand equity despite pressure on consumers
Continued to deepen our ability to offer local brands with local flavours, leveraging cross-brand collaborations to offer consumers more of what they love
Five awards
Innovation launches
3% innovation rate, with innovations focused on driving affordability and consumer relevance
Our strategy is underpinned by our values, winning culture and winning behaviours

Material Inputs

34 manufacturing facilities
Efficient logistics and distribution activities

Challenges in securing inputs

Infrastructure challenges: water and sanitation, electricity, and rail and port networks
Shortage of required technical skills to run and maintain plant
Adverse weather patterns such as flooding

Our actions to sustain value

R1.2 billion capital expenditure in manufacturing and distribution capability and technology
6.4% improvement in overall equipment effectiveness (OEE) over past five years
R525 million in cost savings this year through our continuous improvement initiatives

Outcomes of our activities

Continued investment in plant and equipment

Expanded capacity, optimising efficiency, upgrading infrastructure, and realising innovation opportunities
Approval for rationalisation of certain factories

Some challenges

High agricultural and other input cost inflation
Short supply of certain packaging materials and ingredients, including disruption this year in vinegar supply due to supplier breakdown

Material Inputs

Equity
Borrowings
Cash generated from operations

Challenges in securing inputs

Interest rate cycles
Fluctuating exchange rates

Our actions to sustain value

Effective roll-out of federated operating model with decentralised decision-making close to the operations
Continued delivery of operational efficiencies
Corporate governance structures
Acceleration of portfolio optimisation plans
Guiding principles in response to the growth of private label

Outcomes of our activities

19.1% return on invested capital (ROIC) (2024: 14.7% restated)
ROE for 2025 is 18.8%
R72 million paid in interest (2024: R309 million)
R7.0 billion cash generated from operations (2024: R5.5 billion)
Total ordinary dividend per share declared: 1 644 cents (2024: 1 034 cents)
Total special dividends declared: 3 926 cents (2024: nil)
Share buybacks in 2025: R1.5 billion (2024: R215 million)

Material Inputs

Local and imported raw material ingredients (including notably wheat, rice, maize, oats, sugar, ground nuts, tomatoes and sorghum)
Packaging inputs (including PET, tin, glass and paper)
Water (municipal and own borehole) for production
Fuel (diesel and petrol) for distribution and manufacture
Energy for manufacturing (primarily Eskom electricity)
Fertile soil and conducive agricultural conditions

Challenges in securing inputs

Energy and water infrastructure challenges impacting availability
Climate change and extreme weather events impacting quality, quantity and cost of inputs
Supply disruptions in certain key inputs
Inefficiencies in South African port, road and rail infrastructure resulting in delays

Our actions to sustain value

Active development and maintenance of relationships with key suppliers
Innovations and partnerships to reduce packaging and food waste
Energy and water efficiency measures
Investment in renewable energy to strengthen energy security and reduce carbon footprint

Outcomes of our activities

Year-on-year progress in mitigating impacts

5.5% reduction in direct GHG emissions
7.6% reduction in GHG emissions intensity
0.5% reduction in absolute energy use
3.4% reduction in electrical energy intensity
10% reduction in absolute water use
12% reduction in water-use intensity
39% reduction in waste to landfill intensity

For further details on progress made on environmental stewardship as part of our sustainability strategy can be found in our sustainability databook.

Challenges remain in certain areas

The global food system is recognised as having a significant impact on biodiversity and habitat loss, climate change and packaging pollution, placing direct pressure on the resources we depend on and, increasing consumer and regulatory practices