46 / 276
PERFORMANCE REVIEW
44
Tiger Brands Limited Integrated Annual Report
2014
Divisional review
continued
Export and International (excluding Nigeria)
continued
The company continues to invest in capacity
enhancements, facility upgrades and
continuous improvement projects to support
its growth.
Ethiopia: East Africa Tiger Brands Industries
(EATBI) (51% held by Tiger Brands)
The period under review proved to be
challenging for the EATBI business in Ethiopia,
particularly in the second half of the 2014
financial year. Business performance was
impacted by various macro-economic-related
factors that had a significant impact on the
trading environment within which the
company operates.
Ongoing foreign currency shortages, the cost
of customs clearing inefficiencies, customer
liquidity issues, logistics challenges and
frequent power outages placed strain on
the company’s ability to execute its 2014
operating plan. The ongoing liquidity
challenges within the market remain a concern
as traders move towards minimal stockholdings.
The company continues to invest in its core
brands and new category entries. During the
year, the company launched its entry into the
powdered soft drinks category under the Oros
brand and various new initiatives are planned
for early 2015. Investment in plant and
Two major capital expenditure projects were
approved to upgrade the Davita facilities and
increase production capacity. Both projects are
currently in progress and are anticipated to
be complete in the early part of the 2015
calendar year.
Prospects for the business remain positive but
are continually subject to the macro-economic
and competitive dynamics of each country.
Cameroon: Chocolaterie Confiserie Camerounaise
(Chococam) (74,7% held by Tiger Brands)
Chococam delivered excellent performance
across all its key categories in both domestic
and export markets. This was achieved through
focused investment in its core brands, selling
wider and deeper, coupled with improved
service levels in its local markets.
The company continues to pursue its regional
exports strategy with success. Key export
markets include Gabon, Chad, Congo
Brazzaville and Equatorial Guinea with
plans to enter two new markets in the region
in progress.
Continued brand support and a strong innovation
pipeline have resulted in market share gains
across its key categories, further strengthening
the company’s market leadership positions.