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Tiger Brands Limited Integrated Annual Report
2014
Annual financial statements
37 Financial instruments
continued
37.1 Procurement risk (commodity price risk)
continued
At year end, the exposure to derivative contracts relating to strategic raw materials is as follows:
GROUP
Derivative contracts
expiring within 0 – 3 months
(R’million)
Unrealised
profit at
30 September
Hedged
value
2014
Maize and wheat
Futures
(2,6)
62,7
2013 (restated)*
Maize and wheat
Futures
(2,0)
78,1
*
The amounts have been restated due to the adoption of IAS 19R.
Commodity price sensitivity analysis
The following table details the group and company’s sensitivity to a 10% increase and decrease in the
price of wheat, rice, maize and sorghum.
The 10% stringency is the sensitivity rate used when reporting the commodity price risk internally to key
management personnel and represents management’s assessment of the possible change in the relevant
commodity prices excluding the impact of hedge accounting.
GROUP
Profit/(loss) after tax
(R’million)
2014
Restated*
2013
Milling and Baking + 10%
(216,9)
(188,6)
Milling and Baking – 10%
216,9
188,6
Other Grains + 10%
(98,7)
(107,9)
Other Grains – 10%
98,7
107,9
Other + 10%**
(49,6)
(30,6)
Other – 10%**
49,6
30,6
Total + 10%
(365,2)
(327,1)
Total – 10%
365,2
327,1
*
The amounts have been restated due to the adoption of IAS 19R.
** Other includes tomato paste, sugar, pork, soya and other sundry items.
Commodity price sensitivity is not applicable to the company.