The preparation of these results has been supervised by Deepa Sita, chief financial officer of Tiger Brands Limited.

The summarised consolidated preliminary financial statements are prepared in accordance with the requirements of the JSE Limited Listings Requirements for preliminary reports and the requirements of the Companies Act of South Africa. The Listings Requirements require preliminary financial statements to be prepared in accordance with the conceptual framework, the measurement and recognition requirements of International Financial Reporting Standards (IFRS), the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and also, as a minimum, to contain the information required by IAS 34 Interim Financial Reporting.

The directors take full responsibility for the preparation of the preliminary report and that the summarised consolidated financial statements have been correctly extracted from the underlying annual financial statements. The accounting policies applied in the preparation of these financial statements are consistent with those applied in the previous financial statements.

The accounting policies applied in the preparation of the summarised consolidated financial statements from which the summary financial statements were derived are in terms of IFRS and are consistent with those accounting policies applied in the preparation of the previous consolidated financial statements. The majority of the group’s financial instruments that are measured at fair value in terms of IFRS 13 Fair Value Measurement, are noted as level 1 hierarchy, which are valued based on quoted market prices.

Ernst & Young Inc., Tiger Brands Limited’s independent auditors, have audited the consolidated financial statements of Tiger Brands Limited from which the summarised consolidated financial results have been derived. The auditors have expressed an unmodified audit opinion on the consolidated annual financial statements. Any reference to future financial performance included in this announcement has not been audited or reported on by the group’s external auditors. The auditors’ audit report does not necessarily report on all the information contained in this announcement or financial results. Shareholders are therefore advised that in order to obtain a full understanding of the nature of the auditors’ engagement they should obtain a copy of the auditors’ audit report together with the accompanying financial information from the issuer’s registered office.

During the fourth quarter of the 2022 financial year, a product recall was initiated on certain Baby powder products as a precautionary measure. Trace levels of asbestos were detected in test samples from a batch of pharmaceutical-grade talc powder used as raw material in the production of finished powder products. The defective raw material was identified in August 2022. The decision was made, in the best interest of consumers, to recall all Baby talc powder products from store shelves and from consumers. Approximately 281,9 thousand units are estimated to be destroyed, of which 68,5 thousand units are estimated to be recalled from the trade.

During the second half of the 2021 financial year, a product recall was initiated on selected canned vegetable products within the Groceries business over safety concerns linked to defective cans. The details of the recall are disclosed in the 2021 financial statements. Insurance proceeds of R52,2 million (net of Value Added Tax) have been received to date and accounted for as sundry income.

For clarity, the total impact of both recalls has been accounted for on the income statement as follows:

The July 2021 civil unrest in KwaZulu-Natal (KZN) particularly impacted the Rice and Snacks & Treats businesses. This resulted in inventory write-offs across the two businesses, as well as physical damage to and loss of property, plant and equipment. The unrest also resulted in lost sales across the business up to 31 August 2021. During the current year, the group has received insurance claims relating to the civil unrest from the South African Special Risks Insurance Association (SASRIA). In total, R165,8 million (net of Value Added Tax) has been received to date, of which R28,3 million relates to insurance proceeds on the property, plant and equipment written off following the civil unrest. The remaining insurance proceeds of R137,5 million which relate to inventory write-offs, repairs to damaged property, plant and equipment, cleaning and security costs, have been accounted for as sundry income.

Goodwill and indefinite useful life intangible assets are tested for impairment annually (as at 30 September) and when circumstances that indicate the carrying value may be impaired. The group’s impairment tests for goodwill and intangible assets with indefinite useful lives are based on the value in use calculations. The key assumptions used to determine the recoverable amount for the different cash-generating units are disclosed in the annual consolidated financial statements for the year ended 30 September 2022. Property, plant and equipment in the Deciduous Fruit business (LAF) was impaired by R3,5 million (2021: R139,1 million). In the prior year, a significant impairment on property, plant and equipment was recognised due to the downturn in the LAF business, which is predominantly an export business. An impairment in Davita (which is included in the Exports and International cash-generating unit) of R9 million was recognised on specific plant and equipment.

Profit for the period from discontinued operations (attributable to owners of the company)

The comparative periods reflect the results of the discontinued operations Deli Foods Nigeria Limited (Deli Foods) and VAMP, a division of Tiger Consumer Brands Limited. These are stated below.

There are no material events that occurred during the year subsequent to 30 September 2022 and prior to these financial results being authorised for issue.