South Africa’s largest food maker Tiger Brands has issued a warning on the consumer outlook for the remainder of the year, even as it posted a 7% rise in headline earnings.
For the six months to 31 March, headline earnings rose to ZAR1.06bn (US$140.7m), the company revealed in an earnings release today (18 March).
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Earnings per share increased by 5% to 662.2 cents per share. However, excluding a one-off charge of ZAR1.5bn, EPS for the half would have increased by 20%.
Operating income rose was also up 5% to ZAR15.94bn, as soft commodity prices saw operating margins improve from 14.6% to 15.7%.
The company said that sales during the period were dented by price deflation and market contraction, which resulted in falling sales volumes and value. Revenue fell 9% to ZAR10.31bn.
Looking ahead, Tiger said that it continued to expect difficult trading conditions as consumer spending remains under pressure.
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By GlobalDataNevertheless, Tiger said that it anticipates headline earnings per share for the year ending 30 September to show an increase on last year.
