Salient features

TIGER BRANDS DELIVERS A MUTED FIRST-HALF PERFORMANCE AMID A LEADERSHIP TRANSITION AND THE INITIATION OF TURNAROUND EFFORTS IN DIFFICULT TRADING CONDITIONS

Revenue R19,2 billion 1%

Group operating income* R1,3 billion 3%

Income from associates R396 million 44%

EPS from total operations 892cps 19%

HEPS from total operations 808cps 11%

Interim dividend 350cps 9%

Profit on sale of non-core brand amounts to R128 million

* Before impairments, fair value losses and non-operational items

Who we are

Tiger Brands is one of Africa’s largest listed manufacturers of fast-moving consumer goods (FMCG). Our core business is the manufacture, marketing and distribution of everyday branded food and beverages.

Our products are relevant across every meal occasion and are well-positioned to grow. The portfolio also includes leading brands in the home and personal care segments, supported by a growing presence in Africa.

Commentary

Since Tjaart Kruger’s appointment as CEO on 1 November 2023, the group has now finalised the appointment of the new leadership team. Thushen Govender assumed the role of CFO on 1 January 2024, followed by the appointment of Managing Directors from within the organisation for each of the six business units on 1 February 2024. The new leadership team has hit the ground running, driving forward key strategic priorities aimed at revitalising the group, stimulating growth, and enhancing profitability sustainably. It is anticipated that the effect of key initiatives will start to reflect in the short term.

Financial statements

Cash operating profit increased 6% to R2,1 billion. Working capital outflows of R1,4 billion declined by 19% relative to the same period last year, mainly due to improved debtor collections in line with the focused working capital initiatives that are currently underway. As a result, cash generated from operations increased to R760 million from R333 million last year. Capital expenditure for the period amounted to R560 million (2023: R476 million). The group ended the period with elevated net debt levels of R2,7 billion (2023: R1,7 billion), primarily attributable to higher opening debt levels.

Notes

The company declared an interim ordinary dividend of 350 cents per share for the six months ended 31 March 2024, in line with the company’s dividend policy of 1,75x cover based on HEPS and in line with the higher headline earnings per share. This resulted in a 9% increase relative to the prior year interim dividend.

Unaudited group results and dividend declaration