South African food maker Tiger Brands has booked higher annual profits, helped by the proceeds from the disposal of its business in Nigeria but also growing sales.
Tiger said total earnings per share for the 12 months to the end of September, including discontinued operations increased to 2,034 cents compared to 1,068 cents in the previous year – in line with a regulatory filing issued by the company last month. Total headline earnings per share including discontinued operations increased 19% to 2,127 cents over 1,786 cents previously.
Tiger reported full-year profit of ZAR3.3bn compared to ZAR942m in the previous year. The company’s operating profit before impairments and one-off items, which this year amounted to a ZAR99.1m of foreign currency translation reserve related to the former Nigerian unit, stood at ZAR4.15bn, up from ZAR4.03bn.
Including the impairments and one-off items, operating profit was ZAR3.83bn, against ZAR3.69bn a year earlier.
Group turnover increased 11% to ZAR31.7bn (US$2.2bn). Operating income before impairments and abnormal charges increased by 5% to ZAR4.2bn compared to ZAR4.1bn previously.
Tiger sold its Tiger Branded Consumer Goods business in Nigeria last February to joint venture partner Dangote Industries. Under the agreement, Dangote said it would provide a cash injection of ZAR700m to Tiger and in return Tiger sold its 65.7% stake for the nominal consideration of $1 and wrote off shareholder loans to the venture.
On its full-year results, the company said in a statement: “Despite a challenging operating environment, our resilient brands drove strong volume growth, particularly in the domestic market. The year under review was characterised by high inflation in raw material input costs, primarily due to the prolonged drought and significant currency volatility. The impact was felt across the domestic portfolio, most notably in the grains and groceries divisions.
“Despite a marginal decline in the grains division’s operating income, driven primarily by drought-related cost push in maize and sorghum, the performance of the balance of the domestic portfolio reflects the strength of our brands, with particularly strong performances from groceries, beverages and home care.”