Tiger Brands Red in tooth and claw. And financials.
Those Tiger interims, then. As you’d expect in this year which included Eskom, elections and, in Tiger’s case, the fallout from listeriosis, they were not all that: revenue down -2% to R15.4bn, net profit down -1% to R1.4bn, and headline earnings down -11%. Value added meats – the division hit by listeriosis – reported an operating loss of R296m, and exports and international revenues fell -11% to R1.7bn. Grains also saw a steep decline, while baby care, if you’re looking for a silver lining, grew revenue +22% to R476m, and home and personal care were also up. The sale of the Group’s shares in Oceana to Brimstone also hit HEPS.
Comment: A rough six months, and as Tiger step up for a bruising battle in the class action lawsuit against listeriosis victims (two words: Erin Brokovich), the next interim period might be similarly tricky. We hope not though, and look forward to seeing the benefits of the organisational restructure start to pay off for the Tiger team.