Tiger Brands leaps forward with strong half-year results
15/06/2017 – News / Tiger Brands / Africa
Africa’s leading consumer brands producer, Tiger Brands, has announced a strong set of financial results in the half-year period ending on 31st March 2017. The group’s domestic business proved resilient and is well placed to implement the newly developed group strategy.
Group turnover from continuing operations increased by seven per cent to R16.4 billion (US$1.27bn), while group operating income from continuing operations – before IFRS 2 charges, impairments and abnormal items – saw a 10-per-cent rise to R2.2 billion (US$170 million) during the period under review. Headline earnings per share from continuing operations increased by seven per cent to 1036 cents.
The JSE-listed manufacturer of consumer brands said that its domestic business had proved particularly resilient, with domestic turnover having increased by eight percent to R14.3 billion – compared to R13.2 billion in 2016 – driven primarily by the grains division.
Nonetheless, volumes in the domestic business declined by four per cent – in part due to Easter volumes being included in the comparative period. The group’s CEO, Lawrence Mac Dougall, said that given Tiger Brands operates in such an intensely competitive industry, increasing market share against well-funded and established participants would require the full commitment of an experienced team working towards a clear strategy.
Mr Mac Dougall went on to remark that he was encouraged by the results, which he believes reflect the quality of the group’s brands. “The immediate priority is to rejuvenate the domestic business to deliver sustainable, profitable growth. Importantly, Africa and other emerging markets remain a key part of our growth strategy,” he advised, adding that the group would also continue to strengthen its relationship with its key strategic social partners, particularly The Tiger Brands Foundation, established in order to bring about broad-based socio-economic impact in vulnerable communities.