Tiger Brands Integrated Annual Report 2015

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Tiger Brands Limited integrated annual report 2015 45
Rm 2015 2014
%
change
Turnover 4 617,4 4 578,7 1
Operating income* 526,7 691,1 (24)
Operating margin (%) 11,4 15,1
*Before abnormal items.
As this division is an important channel for our products
outside South Africa, it continues to expand its offerings in
existing and new markets, supported by focused brand
support across key categories.
The strength of the US dollar resulted in liquidity issues that
curtailed potential growth. Investment in brands to drive
awareness and visibility continued to deliver positive results.
Further capital expenditure projects will be considered for
improved efficiency and increased demand projection.
Innovation and broader penetration are key opportunities
in this business, and its prospects remain positive, subject
to the macro-economic and competitive dynamics of
each country.
Cameroon: Chococam (74,7% held)
Chococam manufactures chocolate, chocolate spread,
candy, gum and powdered beverages. It maintained its
excellent performance, with growth of 7% in turnover and
12% in operating income. Volume growth of 9% was
recorded across all key categories in both domestic and
export markets, despite the negative economic impact lower
oil prices have on oil-dependent countries such as
Cameroon.
Performance
Results for the Exports division (including Davita which
exports to 33 countries across Africa) were affected by
the business failure of the Mozambican distributor which
resulted in a bad debt exposure and a decline in trading
in the fourth quarter.
Demand for our products remains robust in the southern
African region, particularly Mozambique, Zambia and
Zimbabwe, although capacity issues in selected categories
curtailed potential growth. This has been addressed for the
new year.
Exports and International