The group plans to prioritise investment, product innovation and leverage the strength of its brands to better results.
Tiger Brands has announced its results for the full year ended 30 September 2019, saying it plans to “prioritise investment in the group’s key brands and delivering product innovations to meet changing consumer needs” in a time where significant macro-economic challenges continue to impact the country.
The report highlighted the following results:
- Revenue increased by 3 percent to R29.2 billion (excluding VAMP+, revenue increased by 5 percent to R28.6 billion)
- Group operating income declined by 20 percent to R2.6 billion (excluding VAMP+, group operating income declined by 11 percent to R3.2 billion)
- Group operating margin down 260 bps to 9 percent
- HEPS down 17 percent to 1,249 cents per share
- EPS up 55 percent to 2,364 cents per share
- Total dividend declared of 1,061 cents per share
According to the statement, the results reflect the difficult trading conditions, characterised by an increasingly challenging consumer environment and input costs rising ahead of price inflation.
The overall result was significantly impacted by ongoing margin compression across the company’s grains division, tough trading conditions in the group’s primary export markets and the slower than anticipated recovery of the VAMP business, which was temporarily closed last year following a listeriosis outbreak. The unbundling of the company’s investment in Oceana also had a significant impact on year-on-year comparisons.
The group, however, plans to leverage the strength of its brands by evaluating opportunities to stretch its brands within and across existing and new product categories. Tiger Brands’ Africa is looking to deliver organic growth by driving category growth through targeted brand investments, developing superior routes to market and investment in enabling capabilities.