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Tiger Brands Limited integrated annual report
2015 29
Key elements to enhance our existing strengths
include:
Clear investment choices
Within the group’s business portfolio, the categories
and/or geographies that are likely to provide the best
potential and requisite return on investment to meet our
strategic objectives.
Critical resources of people and talent
Tiger Brands’ growth and expansion plan is challenging
and will need the right calibre, capability and capacity
of human resources to achieve its strategic objectives.
This in turn will require a leadership mix of strategic and
entrepreneurial thinking, coupled with disciplined and
rigorous executional capability.
In the transitional and expansionary phase of our business
from domestic to multi-country operation, we will need to
balance the need for a lean, cost-efficient organisation in
terms of resources with the necessary depth of talent and
leadership capable of driving expansionary growth. Proper
talent management and individual development will be a
key underpin to the successful execution of our strategy.
Optimum organisational structure
As Tiger Brands matures into a multi-geography, multi-
category organisation, we will need an optimal
organisational structure to:
❍❍
Maximise synergies and cost efficiencies
❍❍
Achieve strategic alignment
❍❍
Deliver optimal operating efficiency
❍❍
Support group strategic initiatives
❍❍
Sustain an entrepreneurial approach.
Some changes have already been made to the group’s
organisational structure but further refinements will be
implemented in determining the optimum structure to lead
Tiger Brands into the future and ensure the sustainable
delivery of our strategic objectives.
Managing sustainability and reputation
Central to achieving the group’s financial and brand growth
objectives is managing sustainability and reputation. Key
elements include:
❍❍
Building on our current strong brands and reputation
❍❍
Promoting the corporate identity to all stakeholder groups
❍❍
Adding value to society with integrity
❍❍
Driving internal communication, aligned to company
goals
❍❍
Protecting our licence to trade through proper
governance and engaging with stakeholders
❍❍
An integrated sustainability approach.
Key drivers
❍
In South Africa, we launched
Jungle Ultra, aimed
at the fast growing energy
segment of the breakfast
market and Ingram’s
Triple Glycerine Cream
in the personal care
category
❍
Adjusted HEPS* up by 6%
❍
Cash generated from
operations of R3,6 billion
* HEPS from continuing operations adjusted for TBCG
once-off tax and other asset write-offs.
❍
On track to achieve
annual cost saving
target: R500 million
❍
Capex of R882 million
(2014: R983 million)
❍
Margin of 11,6%
❍
Operating income
growth of 3%
❍
Investment in
marketing up 12%
to R845 million,
innovation rate
up to 3,5%
❍
Marketing investment
and innovation in
Home and Personal
Care results in
operating income up
24% and margins
of 17,3%
❍
Turnover
growth of 5%
❍
Volumes up
by 1%
Geographic
and new
category
expansion
Reignite top
line and regain
market share
Optimise
efficiencies and
deliver cost
savings
Deliver
operating
leverage
Profitable
growth and
cash flow
6
3
Invest in brands,
innovation and
people
2
4
1
5