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Tiger Brands Limited Integrated Annual Report
2014
Performance review
Langeberg & Ashton Foods (L&AF)
L&AF delivered an excellent performance
for the year, with strong growth achieved
in both revenues and operating profit. This
was achieved despite a slow start to the year
which commenced with a fire that destroyed
its cold rooms, protracted strike action
and a lower peach crop due to inclement
weather conditions.
Growth was driven mainly by sales to the
Far East and Africa including South Africa,
while growth to Europe, the largest regional
contributor to the business, delivered a
subdued performance. The company’s focus
on operational efficiencies is relentless as it
seeks to improve its competitiveness in the
global canned fruit and fruit puree markets.
This has delivered positive results in the
form of improved yields and a slightly
higher margin.
The prospects for the business remain positive
but are subject to the import regulations and
competitive dynamics of each country in which
it operates.
equipment continued, with two new sachet
machines commissioned during the year, while
the process of fixing and optimising the
company’s existing facilities is ongoing.
Despite the challenges of the past year,
Ethiopia remains an important investment
destination for Tiger Brands.
Kenya: Haco Tiger Brands (51% held by
Tiger Brands)
Haco Tiger Brands continues to deliver strong
growth across its core categories in both local
and export markets. The growth was achieved
through focused investment in core brands,
improved penetration in local and export
markets, as well as the execution of its key
innovation projects.
In Kenya, a stable price environment,
favourable category mix and continuous
improvement benefits were the main drivers
of business performance. Strong growth was
achieved in all East African export territories.
The company’s innovation strategy remains a
cornerstone of its performance and during the
year under review, various new innovations
were introduced in the Kenyan market.
Investment in capacity expansion and
operational efficiencies continued in line
with the company’s growth trajectory.