Salient features*

Tiger Brands’ full year performance was impacted by the suspension of operations at Value Added Meat Products (VAMP) and a challenging trading environment

  • Revenue declined by 9% to
    R28,5 billion

  • Group operating income** declined by 28% to
    R3,3 billion

  • Group operating margin** down 310bps to
    11,7%

  • HEPS down 26% to
    1 587 cents per share

  • Dividend unchanged at
    1 080cps

  • Dividend cover reduced to
    1,75x based on HEPS

  • Oceana Group Limited (Oceana) stake to be
    unbundled

  • * From continuing operations.

    ** Before IFRS 2 charges.


Commentary

Overview

Tiger Brands’ results reflect the depressed consumer environment, which deteriorated further in the second half of the year. South Africa slipped into a technical recession during the second quarter of 2018 and the Rand weakened significantly adding to the pressure on consumer spending. At the same time, input costs started to increase significantly. Despite this cost push, the market was characterised by manufacturer restraint on pricing in an attempt to minimise consumer inflation and maximise volumes. In addition, the group’s VAMP division had a material impact on the results following the suspension of operations for the entire second half of the financial year.

Detailed commentary