Tiger Brands

Tiger Brands, a food and household company with strong and iconic brands such as KOO, Oros, Jungle Oats, Tastic rice, and All Gold, experienced a decline in profits for the six months to March 2023.
Despite revenue increasing by 16% to R19.4 billion, mainly driven by price inflation, overall volume declined by 1%. Operating income was down by 9% to R1.4 billion, with a margins falling to 7% compared to 8.9% in the prior comparable reporting period.
Although the snacks and treats segment performed strongly, the group faced major challenges with raw material shortages and escalating costs, which impacted the grocery segment. Additionally, load-shedding costs increased by 500% to R76 million compared to R12 million in the corresponding period in 2022.
The group also faced challenges due to food retailers and consumers cutting back on Tiger Brands’ iconic brands in favor of no-name or retailer-owned brands, affecting group margins.
Despite these immediate challenges, including higher levels of load-shedding, HEPS were up to 731 cents per share from 729 cents per share, with the dividend unchanged at R3.20 cents per share.
By Ron Klipin