Tiger Brands posts mixed FY results

Tiger Brands posts mixed FY results

Tiger Brands today (19 November) posted higher annual sales but booked a fall in profits resulting from an impairment charge on its business in Nigeria, to which the South African group announced it was cutting off funding to earlier this week.

An impairment charge for the flour and grains business in Nigeria led to net income of ZAR942m (US$66.5m) for the 12 months to 30 September, down from ZAR1.9bn a year earlier. Headline earnings per share fell 2% to ZAR1.78 per share.

The charge also meant Tiger booked a 22% decline in operating profit to ZAR1.99bn. However, when adjusted for the impairment charge, operating income rose 3% to ZAR3.65bn.

Revenues were up 5% at ZAR31.55bn. Tiger Brands said domestic sales increased 6%, with volumes "maintained" in an "increasingly competitive and demand-constrained environment".

Tiger Brands' consumer brands food arm saw revenues rise 7% to ZAR10.1bn and operating income grow 12% to ZAR1.1bn

Sales and operating income from its groceries business rose. After a "subdued" first half of the year, Tiger also saw revenue and earnings from its snacks and treats unit also increase

Tiger Brands said the outlook for the year ahead "remains challenging, with low domestic economic growth, rising costs and job security concerns weighing on the South African consumer".

However, it added: "Tiger Brands has the brands, people and capability to address these challenges. In addition, the group will continue to focus relentlessly on cost savings and efficiencies, as well as further investment in innovation, customer engagement and brand development."