South African consumer goods group Tiger Brands has reported higher annual profits as improved earnings from its international markets offset challenging conditions at home.
Tiger said operating income from its export markets “more than doubled” as it benefited from full-year contributions from acquisitions in Nigeria and Ethiopia.
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Operating income from its operations outside South Africa reached ZAR451m (US$51m) in the 12 months to 30 September.
Higher earnings from export markets helped drive a 7% increase in group operating income to ZAR3.5bn, although Tiger’s businesses outside South Africa still only accounts for 13% of earnings.
Tiger’s revenues also benefited from its international growth. Turnover was up 11% at ZAR22.7bn. Tiger said inflation in South Africa of 8% also helped sales but noted domestic volumes slid 3%.
The company is trying to revitalise its domestic business, which has seen “economy” brands and increased competition from private label hit sales.
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By GlobalDataTiger said the next financial year would be “challenging” with consumers “under pressure” in South Africa. However, it said its “growth prospects” in Africa look “encouraging”.
