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Tiger Brands Limited integrated annual report
2015 31
We keenly understand that expanding into the rest of Africa
will drive long-term growth but there will be salutary lessons
for us along the way. While we have recorded good
progress with our Central African operation (Cameroon) and
our Exports business in recent years, we faced some
challenges in 2015 which have now been addressed.
The underlying trading performance of Tiger Branded
Consumer Goods plc (formerly known as Dangote Flour Mills
plc (DFM)) continued to reflect a positive trend, although this
did not result in an improved bottom-line performance.
As outlined in the chairman’s report, the board of Tiger
Brands took the difficult decision to discontinue funding
TBCG with effect from mid-November 2015 and has
subsequently reached agreement with Dangote Industries
Limited to sell its interest in TBCG in return for an immediate
cash injection to sustain TBCG’s operations going forward.
The irregularities in Kenya in the 2014 financial year
unfortunately affected perceptions of the quality of
management and oversight of that business. We are
confident that the Haco board has taken appropriate
measures to strengthen controls and ensure the company’s
continued progress. From a Tiger Brands perspective, we
have increased oversight from the centre through more
regular interaction.
On the non-financial side, we have made significant
progress in strengthening the depth and breadth of skill
and experience in our group in recent years. As the group
has grown and become more complex, we have recruited
both functional and operational expertise. I am proud of the
fact that Tiger Brands enjoys the benefits of teams with
accumulated FMCG experience spanning Nigeria,
Ethiopia, the UK, Brazil and, of course, South Africa.
Collectively, our senior management teams have significant
years of FMCG experience, with clear benefits for our
group. Importantly, much of this expertise is country-specific,
a distinct and competitive advantage in establishing Tiger
Brands in new territories.
The skill of all our people is fundamental to our sustainable
growth. To ensure that we retain and attract the calibre of
people we need, we launched a far-reaching talent
management programme in the review period, supported
by performance-based rewards. We also benchmarked our
group against peers by participating in the Top Employers
survey. Commendably, Tiger Brands was certified as a top
employer because of our attractive employee offerings.
We appointed Noel Doyle as chief operating officer. His
exceptional industry knowledge and experience in both South
Africa and Nigeria provides an operational focus that frees
the chief executive officer and, by extension the board, to
concentrate more externally on the longer-term view.
What do you see as the principal challenges for
Tiger Brands in the year ahead
?
The FMCG industry is currently characterised by change,
which is happening at an unprecedented pace and on
multiple levels. Success in this fluid market will require quick
thinking, supported by accurate market intelligence, deep
experience and appropriate investment to remain ahead.
I believe Tiger Brands has the financial and non-financial
resources to meet these challenges.
I thank the leadership team and employees of Tiger Brands
for their commitment and support over the years. I also value
the guidance and support received from the board during
my tenure. I wish the group every success and am confident
it will succeed in its goal of becoming the pre-eminent
FMCG company in emerging markets.
Peter Matlare
Chief executive officer