Unaudited group results and dividend declaration

For the six months ended 31 March 2024

Financials

INTERIM CONDENSED CONSOLIDATED INCOME STATEMENT

(R'million) Notes   Unaudited
six months
ended
31 March
2024
Unaudited
six months
ended
31 March
2023
Audited
year ended
30 September
2023
Continuing operations          
Total revenue     19 229,9 19 380,6 37 388,5
Total cost of sales     (13 852,7) (14 139,1) (27 048,2)
Gross profit     5 377,2 5 241,5 10 340,3
Sales and distribution expenses     (2 479,8) (2 426,6) (4 702,0)
Marketing expenses     (542,4) (540,7) (969,1)
Other operating expenses     (1 050,5) (958,8) (1 777,9)
Sundry income     23,1 32,2 167,9
Expected credit loss (raised)/reversed     (7,4) 8,7 59,0
Operating income before impairments and non-operational items 2   1 320,2 1 356,3 3 118,2
Impairments and fair value losses 3   (43,2)
Operating income after impairments     1 320,2 1 356,3 3 075,0
Non-operational items 4   127,5 33,0 33,0
Profit including non-operational items     1 447,7 1 389,3 3 108,0
Finance costs     (190,2) (115,0) (267,9)
Finance income     27,2 21,2 29,9
Foreign exchange loss     (52,7) (14,8) (33,6)
Investment income     11,6 12,4 18,0
Income from associated companies     396,2 274,7 696,6
Profit before taxation     1 639,8 1 567,8 3 551,0
Taxation     (328,0) (379,0) (817,1)
Profit for the period from continuing operations     1 311,8 1 188,8 2 733,9
Discontinued operation          
Profit for the period from discontinued operation 9   102,2
Profit for the year     1 414,0 1 188,8 2 733,9
Attributable to:          
Owners of the parent     1 394,0 1 170,7 2 697,2
– Continuing operations     1 291,8 1 170,7 2 697,2
– Discontinued operation     102,2
Non-controlling interests     20,0 18,1 36,7
– Continuing operations     20,0 18,1 36,7
      1 414,0 1 188,8 2 733,9
Weighted average number of shares in issue     156 241 258 156 374 568 156 390 363
Basic earnings per ordinary share (cents)     892,2 748,7 1 724,7
– Continuing operations     826,8 748,7 1 724,7
– Discontinued operation     65,4
Diluted basic earnings per ordinary share (cents)     879,2 735,3 1 700,0
– Continuing operations     814,7 735,3 1 700,0
– Discontinued operation     64,5
Headline earnings per ordinary share (cents)     808,0 731,0 1 734,7
– Continuing operations     742,6 731,0 1 734,7
– Discontinued operation     65,4
Diluted headline earnings per ordinary share (cents)     796,2 718,0 1 709,8
– Continuing operations     731,7 718,0 1 709,8
– Discontinued operation     64,5

Hover over a row in the table to the left to populate this graph

INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(R'million) Unaudited
six months
ended
31 March
2024
Unaudited
six months
ended
31 March
2023
Audited
year ended
30 September
2023
Profit for the period 1 414,0 1 188,8 2 733,9
Other comprehensive (loss)/gain, net of tax (139,0) 851,4 412,0
Foreign currency translation reserve (FCTR) adjustments1 21,5 77,5 83,1
Share of associates other comprehensive (loss)/gain and FCTR1 (147,9) 708,7 227,0
Net gain on cash flow hedges1 13,5 5,9 4,1
Net (loss)/gain on FVOCI2 financial assets (26,1) 59,3 80,6
Remeasurement raised in terms of IAS 19R 48,2
Tax effect (31,0)
Total comprehensive income for the period, net of tax 1 275,0 2 040,2 3 145,9
Attributable to:    
Owners of the parent 1 249,3 2 005,3 3 086,8
Non-controlling interests 25,7 34,9 59,1
  1 275,0 2 040,2 3 145,9
1 Items that may be subsequently reclassified to profit or loss including the related tax effects, with the exception of R5,1 million gain (2023: R3,1 million loss) relating to the share of associates’ other comprehensive loss, and fair value losses on equity instruments measured at FVOCI
2 FVOCI – Fair value through other comprehensive income

Hover over a row in the table to the left to populate this graph

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(R'million)     Unaudited
six months
ended
31 March
2024
  Restated#
Unaudited
six months
ended
31 March
2023
Audited
year ended
30 September
2023
 
ASSETS              
Non-current assets     13 314,0   12 979,4 12 914,7  
Property, plant and equipment*     6 299,9   5 903,1 6 101,6  
Goodwill                                    1 652,5   1 650,1 1 651,2  
Intangible assets                                1 399,3   1 403,3 1 409,9  
Investments     3 931,0   3 980,1 3 707,8  
Investments in associated companies     3 342,2   3 377,2 3 092,0  
Other investments     534,4   552,1 561,5  
Loans     54,4   50,8 54,3  
Deferred taxation asset     31,3   42,8 44,2  
Current assets     14 125,3   12 979,5 12 921,9  
Inventories     8 156,2   7 344,0 7 503,6  
Trade and other receivables     4 948,2   4 977,6 4 642,4  
Cash and cash equivalents     1 020,9   657,9 775,9  
TOTAL ASSETS     27 439,3   25 958,9 25 836,6  
EQUITY AND LIABILITIES              
Total equity     17 333,3   16 693,7 17 304,2  
Issued capital and reserves     17 107,9   16 517,0 17 103,7  
Non-controlling interests     225,4   176,7 200,5  
Non-current liabilities     1 821,8   1 814,9 1 771,7  
Deferred taxation liability     308,3   246,4 322,7  
Post-retirement medical aid obligation     243,3   303,6 238,0  
Long-term borrowings1**     1 270,2   1 264,9 1 211,0  
Current liabilities     8 284,2   7 450,3 6 760,7  
Trade and other payables     5 046,7   5 530,4 5 335,3  
Employee-related accruals     373,6   352,8 434,7  
Taxation     9,1   46,2 107,0  
Short-term borrowings2**     2 854,8   1 520,9 883,7  
TOTAL EQUITY AND LIABILITIES     27 439,3   25 958,9 25 836,6  
Net debt**     (3 104,1)   (2 127,9) (1 318,8)  
* Right-of-use assets are included within property, plant and equipment amounting to R388,9 million (2023: R411,9 million)
** Net debt includes lease liabilities. Excluding lease liabilities, the net debt is R2,674 billion (2023: R1,664 billion)
# Refer to note 7 for details on restatements
1 Includes the utilisation of the revolving credit facility amounting to R1,0 billion (2023: R1,0 billion)
2 Includes the utilisation of borrowing facilities with the group’s banking partners amounting to R2,7 billion (2023: R1,3 billion)

Hover over a row in the table to the left to populate this graph

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(R'million) Share capital
and premium
Non-
distributable
reserves
Accumulated
profits
Shares held
by subsidiary
and
empowerment
entities
Share-based
payment
reserve
Total
attributable
to owners
of the parent
Non-
controlling
interests
Total
equity
 
Balance at 1 October 2022 18,0 2 158,0 14 867,6 (2 187,3) 752,6 15 608,9 142,3 15 751,2  
Profit for the period 1 170,7 1 170,7 18,1 1 188,8  
Other comprehensive income 834,6 834,6 16,8 851,4  
Total comprehensive income 834,6 1 170,7 2 005,3 34,9 2 040,2  
Transfers between reserves 247,3 (251,2) 3,9  
Share-based payment1 (51,9) (51,9) (51,9)  
Dividends on ordinary shares (net of dividend on treasury shares) (1 048,5) (1 048,5) (0,5) (1 049,0)  
Sale of empowerment shares2 3,2 3,2 3,2  
Balance at 31 March 2023 – Restated# 18,0 3 239,9 14 738,6 (2 184,1) 704,6 16 517,0 176,7 16 693,7  
Profit for the period 1 526,5 1 526,5 18,6 1 545,1  
Other comprehensive (loss)/income (480,4) 35,4 (445,0) 5,6 (439,4)  
Total comprehensive (loss)/income (480,4) 1 561,9 1 081,5 24,2 1 105,7  
Transfers between reserves 196,5 (0,6) (195,9)  
Share-based payment1 17,6 17,6 17,6  
Dividends on ordinary shares (net of dividend on treasury shares) (514,4) (514,4) (0,4) (514,8)  
Sale of empowerment shares2 2,0 2,0 2,0  
Balance at 30 September 2023 18,0 2 956,0 15 785,5 (2 182,1) 526,3 17 103,7 200,5 17 304,2  
Profit for the period 1 394,0 1 394,0 20,0 1 414,0  
Other comprehensive (loss)/income (144,7) (144,7) 5,7 (139,0)  
Total comprehensive (loss)/income (144,7) 1 394,0 1 249,3 25,7 1 275,0  
Transfers between reserves 396,2 (412,3) 16,1  
Share buy-back transaction3 (110,5) (110,5) (110,5)  
Share-based payment1 (61,8) (61,8) (61,8)  
Dividends on ordinary shares (net of dividend on treasury shares) (1 078,3) (1 078,3) (0,8) (1 079,1)  
Sale of empowerment shares2 5,5 5,5 5,5  
Balance at 31 March 2024 18,0 3 207,5 15 688,9 (2 287,1) 480,6 17 107,9 225,4 17 333,3  
1 Included in the movement of the share-based payment are options of R99,5 million (2023: R33,9 million) exercised
2 Relates to the exercising of options vested post the December 2014 lock-in period in terms of the Black Managers Participation Right Scheme (BMT). In the current year, R5,5 million (2023: R3,2 million) related to BMT I
3 During the current year, the group embarked on a share buy-back programme, in which 572 354 of the listed Tiger Brands shares were repurchased at an average price of R193,06 per share. The shares were issued at an original par value of R0,1 per share
# Refer to note 7 for details on restatements

Hover over a row in the table to the left to populate this graph

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(R’million) Unaudited
six months
ended
31 March
2024
Restated#
Unaudited
six months
ended
31 March
2023
Audited
year ended
30 September
2023
Cash operating profit 2 109,7 1 999,7 4 264,5
Working capital changes (1 349,3) (1 667,1) (1 561,3)
Cash generated from operations 760,4 332,6 2 703,2
Finance income and income from investments received 38,8 33,6 47,9
Finance costs paid (185,5) (107,4) (256,2)
Dividends received from associated companies and subsidiaries 27,4 247,1
Taxation paid (489,3) (462,2) (808,0)
Cash available from operations 124,4 (176,0) 1 934,0
Dividends paid (1 079,1) (1 049,0) (1 563,8)
Net cash (outflow)/inflow from operating activities (954,7) (1 225,0) 370,2
Proceeds from disposal of intangible assets 127,5
Proceeds from disposal of property, plant, equipment and vehicles 14,7 19,7 26,8
Funds held in escrow 2,4 22,7 39,2
Proceeds on disposal of investment 2,6
Purchase of investment (1,9)
Purchase of property, plant, equipment and computer software (559,7) (476,4) (1 212,6)
Cash outflow from investing activities (417,0) (434,0) (1 144,0)
Net cash outflow before financing activities (1 371,7) (1 659,0) (773,8)
Black Managers Trust (BMT) shares exercised 2,7 1,9 4,1
Shares exercised relating to equity-settled scheme (99,5) (37,7) (38,0)
Repurchase of shares (110,5)
Repayment of principal portion of lease liabilities (112,9) (99,4) (203,4)
Short-term borrowings raised 2 957,5 1 222,2 1 103,9
Short-term borrowings repaid (962,0) (880,0) (1 380,0)
Long-term borrowings raised 1 000,0 1 002,1
Net cash inflow from financing activities 1 675,3 1 207,0 488,7
Net increase/(decrease) in cash and cash equivalents 303,6 (452,0) (285,1)
Effect of exchange rate changes on cash and cash equivalents (58,6) 8,6 (40,3)
Reclassification of cash and cash equivalents to other receivables (14,6) (14,6)
Cash and cash equivalents at the beginning of the period 775,9 1 115,9 1 115,9
Cash and cash equivalents at the end of the period 1 020,9 657,9 775,9
Cash resources 977,3 613,0 732,3
Cash relating to venture capital initiatives 43,6 44,9 43,6
  1 020,9 657,9 775.9

# Refer to note 7 for details on restatements

Hover over a row in the table to the left to populate this graph

OTHER SALIENT FEATURES

(R’million) Unaudited
six months
ended
31 March
2024
Unaudited
six months
ended
31 March
2023
Audited
year ended
30 September
2023
Capital commitments 1 127,5 1 260,0 1 615,8
– Contracted 734,8 486,4 570,0
– Approved 392,7 773,6 1 045,8
Capital commitments will be funded from normal operating cash flows and the utilisation of existing borrowing facilities.      
Capital expenditure 559,7 476,4 1 212,6
– Replacement 394,2 142,6 767,0
– Expansion 165,5 333,8 445,6
Replacement capital expenditure is in line with the approved capex plan.      
Guarantees      
– Guarantees (unutilised) 36,8 24,0 35,3

Hover over a row in the table to the left to populate this graph

INTERIM CONDENSED CONSOLIDATED SEGMENTAL INFORMATION

(R’million)   Unaudited
six months
ended
31 March
2024
Unaudited
six months
ended
31 March
2023
Audited
year ended
30 September
2023
 
REVENUE          
Domestic Operations   16 662,7 17 269,4 32 537,0  
   Grains   8 168,4 8 958,9 17 030,1  
      Milling and Baking1   5 109,2 6 068,4 11 505,4  
      Other Grains2   3 059,2 2 890,5 5 524,7  
   Consumer Brands   7 224,9 7 036,9 13 341,2  
      Groceries   3 344,3 3 413,6 6 414,8  
      Snacks and Treats   1 484,7 1 388,6 2 784,6  
      Beverages   1 344,7 1 220,5 2 159,9  
      Baby   599,9 585,3 1 147,0  
      Food Service Solutions   451,3 428,9 834,9  
   Home and Personal Care (HPC)   1 269,4 1 273,6 2 165,7  
      Personal Care   357,8 371,8 836,0  
      Home Care   911,6 901,8 1 329,7  
Exports and International   2 567,2 2 111,2 4 851,5  
   Exports3   1 328,4 1 217,1 2 513,6  
   International operation          
   – Central Africa (Chococam)   836,4 682,5 1 440,7  
   Deciduous Fruit (LAF)   614,9 439,3 1 342,9  
   Other inter-group sales   (212,5) (227,7) (445,7)  
Total revenue   19 229,9 19 380,6 37 388,5  

1 Comprises maize milling, wheat milling, and baking and sorghum-based products
2 Comprises rice, pasta and oat-based breakfast cereals
3 The key markets contributing to Exports revenue are Mozambique at 39% (2023: 37%); Zambia at 11% (2023: 11%); Zimbabwe at 14% (2023: 10%); and Nigeria at 3% (2023: 3%)

All segments operate on an arm's length basis in relation to inter-segment pricing.

The information above has been disclosed under the existing structure and will be reviewed at year end.

(R’million)   Unaudited
six months
ended
31 March
2024
Unaudited
six months
ended
31 March
2023
Audited
year ended
30 September
2023
 
OPERATING INCOME BEFORE IMPAIRMENTS AND NON-OPERATIONAL ITEMS          
Domestic Operations   1 121,8 1 162,3 2 482,9  
   Grains   171,4 342,5 837,6  
      Milling and Baking1   181,8 267,7 602,2  
      Other Grains2   (10,4) 74,8 235,4  
   Consumer Brands   693,8 554,7 1 162,4  
      Groceries   202,6 126,4 307,5  
      Snacks and Treats   106,0 108,7 228,6  
      Beverages   229,8 196,2 340,1  
      Baby   66,8 45,7 133,8  
      Food Service Solutions   88,6 77,7 152,4  
   Home and Personal Care (HPC)   275,8 255,8 460,6  
      Personal Care   31,4 14,6 117,6  
      Home Care   244,4 241,2 343,0  
      Other3   (19,2) 9,3 22,3  
Exports and International   265,3 163,2 600,6  
   Exports   117,0 76,4 286,4  
   International operation          
   – Central Africa (Chococam)   122,7 102,6 221,8  
   Deciduous Fruit (LAF)   25,6 (15,8) 92,4  
Total operating income from continuing operations before the following items   1 387,1 1 325,5 3 083,5  
Insurance claims received   20,0 142,7  
Restructuring and related costs   (29,6) (94,6)  
IFRS 2 charges   (37,3) 10,8 (13,4)  
Total operating income from continuing operations   1 320,2 1 356,3 3 118,2  
Discontinued operation          
– Value-added Meat Products   102,2  
Total operating income   1 422,4 1 356,3 3 118,2  

1 Comprises maize milling, wheat milling, and baking and sorghum-based products
2 Comprises rice, pasta and oat-based breakfast cereals
3 Includes the corporate office and management expenses relating to international investments

All segments operate on an arm's length basis in relation to inter-segment pricing.

The information above has been disclosed under the existing structure and will be reviewed at year end.

Hover over a row in the table to the left to populate this graph