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PERFORMANCE REVIEW
38
Tiger Brands Limited Integrated Annual Report
2014
Divisional review
continued
Consumer Brands – food businesses
Trading conditions for the year remained
challenging, with increased input costs
impacting all of the businesses in the division.
Overall performance for the division was,
however, respectable, with turnover up 14% to
R9,5 billion and operating income increasing
by 8% to R977 million.
Groceries achieved its strategic goal of
regaining market share in target categories
and made progress in enhancing its
manufacturing architecture. Within the sugar
confectionery segment, Snacks & Treats
successfully retained its leading brand positions
in a highly competitive market. Initial delays
in the commissioning of the Beverages facility
at Roodekop were overcome, which resulted
in a much-improved second-half performance.
Valued Added Meats (Enterprise), continued to
gain market share in a subdued market, while
Out of Home acquired additional customers
with its customised offering.
Groceries
This division includes well-known brands such
as KOO, All Gold, Mrs Ball’s, Black Cat and
Crosse & Blackwell, which hold either the
number one or number two brand position in
their respective categories. With effect from
1 October 2013, the Pasta category was
transferred to the Grains division, while the
Canned Meats business was transferred to the
Value Added Meats division.
Turnover increased by 23% to R4,0 billion
(2013: R3,2 billion) on a like-for-like basis,
(R’million)
2014
2013
%
change
Turnover (Rm)
9 464,4
8 321,9 14%
Operating income before
abnormal items (Rm)
977,3
906,6 8%
Operating margin (%)
10,3%
10,9%
Salient features
Market share gains in Groceries
Improved operating performance
across all businesses
Cost-efficiency and optimisation
projects delivering to expectation