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Tiger Brands Limited Integrated Annual Report
2014
Performance review
A final dividend of 611
cents per share
has been declared for the year ended
30 September 2014. This dividend,
together with the interim dividend of 329 cents
per share, brings the total dividend for the
year to 940 cents (2013: 865 cents).
The above dividend of 940 cents per share
translates to a dividend cover ratio of
1,93 times (2013: 1,88 times) based on total
headline earnings per share, including
discontinued operations. Notwithstanding the
current dividend cover ratio of 1,93 times, the
group will continue to target a dividend cover
of 2,0 times for the foreseeable future.
Financial risk management
The group is exposed to a range of financial
risks through its business activities, including
risks relating to the market in which it operates,
currency risk, interest rates, soft commodity
prices, credit and liquidity risks. The group’s
exposure to and the policies for managing
these risks are detailed in note 37 of the
annual financial statements.
Funke Ighodaro
Chief Financial Officer
September 2014. Working capital per
R1 of turnover improved from 23,2 cents
in 2013 to 22,1 cents.
Cash generated from operations was applied to
fund the group’s tax obligations of R967 million,
dividends of R1,5 billion and capital expenditure
of R983 million. In addition, the group repaid
borrowings of R1,1 billion. As indicated above,
during the year, DFM sold its interest in Dangote
Agrosacks for a consideration of R497 million.
Tiger Brands also acquired an additional 2,3%
interest in DFM for R74 million as part of the
mandatory offer to DFM minorities following the
initial acquisition of the group’s interest in DFM in
October 2012.
Free cash flow of R2,1 billion (cash available
from operations after accounting for capital
expenditure) marginally exceeded the group’s
attributable profits after tax of R2,0 billion.
Obligations
Details of the group’s contractual commitments
as at 30 September 2014 are set out in
note 33 of the annual financial statements.
Market capitalisation and final dividend
distribution
The company’s total market capitalisation
(including treasury and empowerment shares)
as at 30 September 2014 was R60,5 billion,
being R3,3 billion higher than the comparable
figure at 30 September 2013.