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Tiger Brands Limited Integrated Annual Report
2014
Performance review
Grattan Kirk
Business Executive: Consumer Brands – Foods
while operating income increased by 9%
to R320 million (2013: R295 million).
Overall sales volumes grew by 16%
including the annualisation effect of the
prior year acquisition of Mrs Ball’s.
The performance of the business was
a tale of two halves. The first half saw
significant increases in raw material costs
which were not recovered in pricing.
While this negatively affected operating
margins in the first half, the business
managed to regain market share across
all major categories and volumes
recovered to drive turnover growth.
Following pricing adjustments in the
second half, the financial performance
improved significantly against the
prior year.
As part of the ongoing focus on our
manufacturing architecture, R230 million
was invested in consolidating the
Mayonnaise facility into Boksburg. This
should result in manufacturing and supply
chain efficiencies which will materialise
fully in the 2015 financial year.
The tomato paste factory, which was
consolidated in the prior year, is
delivering in line with expectations. In
order to maintain and gain further market
share, new product ranges and variants
are being introduced across all major
categories.