The preparation of these results has been supervised by Thushen Govender, chief financial officer of Tiger Brands Limited. The directors take full responsibility for the preparation of these condensed consolidated interim results.
The condensed consolidated interim results for the six months ended 31 March 2024 have been prepared in accordance with the IFRS Accounting Standards, IAS 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council, the requirements of the South African Companies Act No. 71 of 2008 and the Listings Requirements of the JSE Limited. These statements have not been audited or reviewed by the group’s auditors.
The accounting policies adopted in the preparation of the condensed consolidated interim results are consistent with those applied in preparation of the group’s annual consolidated financial statements for the year ended 30 September 2023. There have been no assets held for sale during the period.
The going concern basis has been used in preparing these condensed consolidated interim results as the directors have a reasonable expectation that the group will continue as a going concern for the foreseeable future. The condensed consolidated interim results have been prepared on the historical cost basis, except for the measurement of certain financial instruments at fair value or amortised cost.
(R’million) | Unaudited six months ended 31 March 2024 |
Restated# Unaudited six months ended 31 March 2023 |
Audited year ended 30 September 2023 |
---|---|---|---|
Operating income has been determined after charging/(crediting) | |||
Depreciation (included in cost of sales and other operating expenses) | 490,9 | 438,7 | 892,6 |
Amortisation | 30,1 | 28,8 | 57,8 |
IFRS 2 (included in other operating expenses) | |||
– Equity settled | 37,7 | (14,2) | 7,8 |
– Cash settled | (0,4) | 3,4 | 5,6 |
# Refer to note 7 for details on restatements
Goodwill and indefinite useful life intangible assets are tested for impairment annually (as at 30 September) and when circumstances exist 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 2023. The September 2023 impairment of property, plant and equipment relates mainly to the Deciduous Fruit business (LAF) of R33,0 million, as well as the Bakeries and Groceries divisions of R14,1 million and R3,2 million respectively.
Based on management’s assumptions, no impairments have been recorded at 31 March 2024.
(R’million) | Unaudited six months ended 31 March 2024 |
Unaudited six months ended 31 March 2023 |
Audited year ended 30 September 2023 |
---|---|---|---|
Impairment of property, plant and equipment | – | – | (50,9) |
Fair value gain on unlisted investment through P&L | – | – | 7,7 |
– | – | (43,2) |
(R’million) | Unaudited six months ended 31 March 2024 |
Unaudited six months ended 31 March 2023 |
Audited year ended 30 September 2023 |
---|---|---|---|
Profit on sale of trademark | 127,5 | – | – |
Profit on disposal of land and buildings | – | 33,0 | 33,0 |
127,5 | 33,0 | 33,0 |
The profit on the sale of the trademark relates to the previously impaired Status trademark, the sale of which was concluded during the course of the current period.
(R’million) | Unaudited six months ended 31 March 2024 |
Unaudited six months ended 31 March 2023 |
Audited year ended 30 September 2023 |
---|---|---|---|
Continuing operations | |||
Profit for the year attributable to owners of the parent | 1 291,8 | 1 170,7 | 2 697,2 |
Profit on disposal of property, plant, equipment and vehicles | (4,0) | (27,6) | (21,6) |
Impairment of property, plant and equipment | – | – | 37,2 |
Profit on sale of trademark (refer note 4) | (127,5) | – | – |
Continuing headline earnings for the period | 1 160,3 | 1 143,1 | 2 712,8 |
Tax effect of headline earnings | 1,5 | 4,8 | 11,1 |
Discontinued operation | |||
After taxation profit for the year attributable to owners of the parent | 102,2 | – | – |
Discontinued headline earnings for the period | 102,2 | – | – |
Fair value hierarchy
Financial instruments measured at fair value are grouped into the following levels based on the significance of the inputs used in determining fair value:
Level 1: Quoted prices in active markets for identical assets or liabilities
Level 2: Inputs other than quoted prices that are observable for the assets or liability (directly or indirectly)
Level 3: Inputs for the asset or liability that are unobservable
As at 31 March 2024, the group held the following financial instruments measured at fair value:
Unaudited six months ended 31 March 2024 |
Unaudited six months ended 31 March 2023 |
Audited year ended 30 September 2023 |
||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
(R’million) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total |
Assets measured at fair value | ||||||||||||
Financial assets | ||||||||||||
Other investments | 307,5 | – | 17,1 | 324,6 | 312,3 | 0,3 | 11,7 | 324,3 | 332,6 | – | 17,1 | 349,7 |
Derivatives | – | 39,8 | – | 39,8 | – | – | – | – | – | 8,9 | – | 8,9 |
Liabilities | ||||||||||||
Derivatives | – | – | – | – | – | (29,5) | – | (29,5) | – | – | – | – |
As part of the group’s continued IFRS compliance evaluations and assessments, the following prior year restatements have been made:
2023 | ||||
---|---|---|---|---|
(R’million) | Notes | Previously reported |
Effect of change |
Restated |
Statement of financial position | ||||
Property, plant and equipment | 7.1 | 5 720,1 | 183,0 | 5 903,1 |
Goodwill | 7.2 | 1 184,0 | 466,1 | 1 650,1 |
Intangible assets | 7.11/7.2 | 1 723,1 | (319,8) | 1 403,3 |
Current assets | 13 250,4 | (270,9) | 12 979,5 | |
Inventories | 7.1.2 | 7 614,9 | (270,9) | 7 344,0 |
Total assets | 25 900,5 | 58,4 | 25 958,9 | |
Issued capital and reserves | 16 458,6 | 58,4 | 16 517,0 | |
Non-distributable reserves | 7.1.3/7.3 | 4 145,6 | (905,7) | 3 239,9 |
Accumulated profits | 7.3 | 13 774,5 | 964,1 | 14 738,6 |
Total equity | 16 635,3 | 58,4 | 16 693,7 | |
Total equity and liabilities | 25 900,5 | 58,4 | 25 958,9 | |
Statement of cash flows | ||||
Working capital changes | (263,8) | 28,0 | (235,8) | |
Purchase of property, plant and equipment | (448,4) | (28,0) | (476,4) | |
Depreciation | 462,5 | (23,8) | 438,7 | |
Amortisation | 4,1 | 24,7 | 28,8 |
During the current financial period, management reassessed the methodology and historical judgements applied to the accounting treatment of specific accruals. The revised approach refines the accounting of these estimates during the course of the financial year. The nature of the change in estimate resulted from current developments within the business and changes to the measurement techniques previously adopted, predominantly relating to customer accruals. This change in accounting estimate impacted operating profit for the period under review by R169 million.
The above change in accounting estimates has been applied prospectively in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.
Profit for the period from discontinued operation (attributable to owners of the company)
Discontinued operations in the current year relate to the Value-added Meat Products (VAMP), a division of Tiger Consumer Brands Limited disposed during the course of 2020.
On 20 March 2024, the company reached a settlement agreement with the company’s insurers for the sum of R140,0 million for obsolete stock previously written off in 2018.
(R’million) | Unaudited six months ended 31 March 2024 |
Unaudited six months ended 31 March 2023 |
Audited year ended 30 September 2023 |
---|---|---|---|
Sundry income | 140,0 | – | – |
Profit before taxation | 140,0 | – | – |
Taxation | (37,8) | – | – |
Profit for the period from discontinued operation | 102,2 | – | – |
There are no material events that occurred during the period subsequent to 31 March 2024 and prior to these financial results being authorised for issue.