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Tiger Brands Limited Integrated Annual Report
2014
Performance review
Chile: Empresas Carozzí (24,4% held by
Tiger Brands)
Empresas Carozzí is a leading branded food
business in South America, based in Santiago,
Chile. It also has significant manufacturing
operations in Lima, Peru.
The year under review was satisfactory at a
consolidated level with pleasing performances
recorded in the International, Agro-industrial and
Peru divisions, being offset by a disappointing
performance in the company’s Chile division.
The Chilean performance was negatively
impacted in the first half by the foreign
acquisition of a large local food player and the
associated need to aggressively defend market
shares through competitive price points. Market
pricing stabilised in the second half.
Government changes in 2014 indicate a more
neutral outlook on the economy in the short to
medium term, with a greater accent on social
spending and the associated tax regime
changes bringing a level of uncertainty.
A key feature of Carozzí’s success has been its
relative brand strength, occupying number one
or number two positions in the majority of the
categories in which it competes. Its depth of
market penetration, high innovation rate and a
competitive go-to-market capability, all contribute
to set this impressive business up to capture and
exploit further growth opportunities.
Zimbabwe: National Foods Holdings
(37,4% held by Tiger Brands)
National Foods is a leading, branded food
company operating in Zimbabwe through an
infrastructure of factories, depots and agencies.
The company again posted pleasing growth in
earnings for the year.
This performance was achieved in a challenging
macro-economic environment exacerbated by
increased competition from imports as a
consequence of rand depreciation and the
introduction of increased competitive capacity
in the stock feeds market.
Profit growth was driven by the performance of
the Maize business on the back of very strong
volume growth and an effective procurement
and logistics strategy to ensure maize availability
throughout the year under review. Flour milling
profitability declined for the year as margins
were reduced in order to compete against South
African entrants. Stockfeeds profitability was flat
when compared with the prior year despite
good volume growth as margin pressures from
increased levels of industry capacity put pressure
on pricing. There was good progress both in
terms of top-line and profit contribution from the
FMCG business with new category entries in
cooking oils and successful range extensions
in other categories.