Tiger Brands

HY results: Revenue was down 1% to 19.2bn (volumes -9%). Local revenue fell 4% with Bakeries & Grains losing market share & having costs increase. Consumer Brands rose 3% to R7.2bn as Snacks & Treats (+7%) performed well, as did Beverages (+10%). HEPS gained 11% putting the food producer on a PE ~10.7x. The dividend rose +9% to 350c. The New CEO & CFO streamlined the group into 6 business units, each with a new MD. Net debt jumped +59% to R2.7bn with the listeriosis Class action still ongoing & a vegetable can recall claim reaching R0.7bn. Management identified R0.5bn in savings, & stock-keeping units to be reduced 20% over next 3 yrs.
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