South Africa's largest food and consumer goods company Tiger Brands has unveiled a "pleasing" set of full-year results, with a pension-fund surplus boosting annual profits.

Net profit for the year ended 30 September rose 1.4% to ZAR2.27bn (US$225m), or ZAR14.33 per share, up from ZAR2.24bn, or ZAR14.02 per share, last year.

During the year, Tiger span off its Adcock Ingram drug-making business.

Excluding the impact of abnormal items, profits from continuing operations rose 17% to ZAR1.83bn, the company said in a filing with the Johannesburg stock exchange today (25 November).

Margins, however, were hit by rising fuel and food prices, declining from 13.9% last year to 13.2% this year, the company said. Profits at Tiger's milling and baking and value-added meat businesses were particularly dented by rising raw materials and energy costs. "These businesses performed well below expectations," the company said.

However, Tiger added: "Pleasing results were achieved in exports, fishing, consumer healthcare and the balance of the domestic food businesses."

Turnover growth from continuing operations was also up year-on-year, rising 23% to ZAR19.9bn on the back of increasing food prices and gains from the acquisitions of Haco Industries and Chococam, in which the company took a 51% and 74.7% stake respectively.

Earlier this month, Tiger revealed it has made a ZAR8bn offer for smaller rival AVI. AVI's board offer has since rejected the offer, stating that it doesn't make "commercial sense". However, Tiger is said to be canvassing the company's shareholders.