South Africa-based FMCG group Tiger Brands has struck a deal to sell its Beacon chocolate brand.
The transaction is Tiger’s latest disposal in the chocolate sector.
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In November, the group announced plans to offload Cameroonian subsidiary Chocolaterie Confiserie Camerounaise, a business also known as Chococam. That deal remains subject to competition approval.
Reporting its half-year results yesterday (1 June), Tiger said it had signed an agreement to sell “the Beacon brand and associated equipment for the chocolate slabs, Easter eggs and assortments”.
Just Food has approached Tiger for more details on the deal, including the identity of the buyer.
In its stock-exchange filing, the company said it had booked a R92m ($5.7m) impairment relating to the Beacon transaction.
However, Tiger said the charge will be “negated” by the end of the financial year on the back of the profit the company expects to make.
The group underlined it will keep its chocolate brands TV Bar, Nosh, Wonder Bar Black Cat and Jelly Tots, as well its Jungle energy bar brand. It described the brands as “profitable” and a “strategic enabler of our snackification growth platform”.
In the six months to the end of March, Tiger brought in revenue of R17.9bn, up 1.3% on a year earlier. Volumes increased 2.6%. Like-for-like volumes rose 4.5%, Tiger said.
Operating income before “impairments, fair value losses and non-operational items” grew 26.1% to R2.1bn. Headline earnings per share – a closely-watched metric in South Africa – climbed 6.5% to 1,001 cents per share.
“The consumer environment remained competitive for the first half, with continued value-seeking behaviour driving purchasing patterns. The ripple effects of geopolitical uncertainty are expected to be felt more acutely in the second half, not only impacting the supply chain but also consumer disposable income,” Tiger said.
