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Tiger Brands Limited Integrated Annual Report
2014
Performance review
Exports and International (excluding Nigeria)
Neil Brimacombe
Business Executive: Exports and International
(excluding Nigeria) and HPCB
Tiger Brands International: Exports
The Exports division continued its excellent
performance in the 2014 financial year,
with strong growth achieved in revenue and
operating profit. Central to this performance
was the excellent growth achieved in
Mozambique, Zambia and Zimbabwe.
Demand for Tiger Brands’ products remains
robust within the southern African region,
driven by improving gross domestic
product and higher consumption within the
region. However, the attractiveness of these
markets has resulted in an influx of new
low-cost entrants, placing pressure on the
export margins.
The division remains an important channel
for Tiger Brands’ products outside South
Africa, and will continue to expand its
offerings in existing and new markets
supported by focused brand support
across its key categories.
Davita Trading (Pty) Limited (wholly owned
by Tiger Brands)
Davita Trading delivered pleasing results
for the year under review. The business
exports to 33 countries across the African
continent, with the Southern and West
African regions being the largest
contributors to business performance.
Gross margins are expected to remain
under pressure as price points are
continually challenged by low-cost
competitors and exchange rate
fluctuations. Investment in brands to drive
awareness and visibility continues to
deliver positive results, while the ongoing
innovation and new product offerings
gained further traction during the year.