| |
The board of directors of Tiger Brands Limited has given general declarations in terms of section 75 of the Companies Act on directors’ personal financial interests. These declarations indicate that certain directors hold positions of influence in other entities which are suppliers, service providers, customers and/or competitors of Tiger Brands Limited. Transactions conducted with these director-related customers and suppliers were on an arm’s-length basis.
The sales to and purchases from related parties are made at normal market prices. Outstanding balances at the year end are unsecured and settlement occurs in cash. This assessment is undertaken at each financial year through examining the financial position of the related party and the market in which they operate. Given the ongoing liquidity and forex shortages experienced within Nigeria and Zimbabwe, the expected timing of receipt of the amounts owing from these related parties has been assessed. As a result, a provision of R30 million (2017: R40 million) has been provided against these outstanding balances, being the impact of the discounting factor applied.
Details of material transactions with related parties not disclosed elsewhere in the financial statements are as follows:
| (R’million) |
Management
fees |
|
|
Directors’
fees |
|
|
Amounts
owed by
related
parties |
|
| 2018 |
|
|
|
|
|
|
|
|
| Group |
|
|
|
|
|
|
|
|
| Related party – associates |
|
|
|
|
|
|
|
|
| Oceana Group Limited |
– |
|
|
0,8 |
|
|
0,2 |
|
| Empresas Carozzí (Chile) |
– |
|
|
3,3 |
|
|
– |
|
| National Foods Holdings Limited |
3,3 |
|
|
– |
|
|
36,8 |
|
| 2017 |
|
|
|
|
|
|
|
|
| Group |
|
|
|
|
|
|
|
|
| Related party – associates |
|
|
|
|
|
|
|
|
| Oceana Group Limited |
– |
|
|
0,7 |
|
|
0,2 |
|
| Empresas Carozzí (Chile) |
– |
|
|
2,8 |
|
|
– |
|
| National Foods Holdings Limited |
3,2 |
|
|
– |
|
|
50,8 |
|
| UAC Foods |
2,7 |
|
|
– |
|
|
20,1 |
|
| |
Group |
| (R’million) |
2018 |
|
2017 |
|
| Other related parties |
|
|
|
|
| Key management personnel* |
|
|
|
|
| Short-term employee benefits |
78,3 |
|
99,4 |
|
| Post-employment and medical benefits |
7,2 |
|
8,4 |
|
| Share-based payments |
35,2 |
|
51,5 |
|
| Total compensation paid to key management personnel |
120,7 |
|
159,3 |
|
* Key management personnel comprise the top tier of the organisation and the managing executives of the individual businesses.
| |
2018 |
|
2017 |
|
| (R’million) |
Amounts
owed
by/(to)
related
part |
|
|
Dividends
received |
|
Amounts
owed
by/(to)
related
parties |
Dividends
received |
|
| Company |
|
|
|
|
|
|
|
|
| Related party – intergroup Subsidiaries1 |
|
|
|
|
|
|
|
|
| Durban Confectionery Works Proprietary Limited |
33,0 |
|
|
– |
|
33,0 |
– |
|
| Tiger Consumer Brands Limited |
(120,1) |
|
|
1 500,0 |
|
(108,7) |
1 335,0 |
|
| Tiger Brands (Mauritius) Limited2 |
343,0 |
|
|
– |
|
(234,0) |
– |
|
| Enterprise Foods Proprietary Limited |
0,4 |
|
|
– |
|
0,4 |
– |
|
| Langeberg Holdings Limited |
500,8 |
|
|
– |
|
702,4 |
– |
|
| Langeberg Foods Africa Proprietary Limited |
– |
|
|
– |
|
(201,6) |
– |
|
| Langeberg & Ashton Foods Proprietary Limited |
499,5 |
|
|
– |
|
499,5 |
– |
|
| The Duntulum Trust2 |
– |
|
|
– |
|
18,9 |
– |
|
| Gloriande NV2 |
– |
|
|
– |
|
0,2 |
– |
|
| Tiger Food Brands Intellectual Property Holding Company Proprietary Limited |
271,0 |
|
|
– |
|
249,9 |
– |
|
| Pharma I Holdings Proprietary Limited |
1 211,2 |
|
|
– |
|
1 227,6 |
– |
|
| Investment and dormant companies |
165,5 |
|
|
– |
|
149,1 |
– |
|
| Chocolaterie Confiserie Camerounaise |
– |
|
|
58,1 |
|
– |
49,0 |
|
| Deli Foods Nigeria Limited3 |
– |
|
|
– |
|
30,5 |
– |
|
| Davita Trading Proprietary Limited |
– |
|
|
150,0 |
|
– |
100,0 |
|
| Empowerment entities |
|
|
|
|
|
|
|
|
| Tiger Brands Foundation |
719,5 |
|
|
188,3 |
|
599,6 |
183,0 |
|
| Thusani II |
130,7 |
|
|
36,6 |
|
110,6 |
35,9 |
|
| Associates |
|
|
|
|
|
|
|
|
| Oceana Group Limited |
0,2 |
|
|
64,0 |
|
0,2 |
255,3 |
|
| National Foods Holdings Limited |
36,8 |
|
|
16,6 |
|
50,8 |
36,4 |
|
| UAC Foods |
– |
|
|
12,5 |
|
20,1 |
11,0 |
|
| 1 |
Interest-free with no fixed repayment terms. Not repayable before 30 September 2018 except for the amount owing by Langeberg & Ashton Foods Proprietary Limited, and the amount owing to Tiger Consumer Brands Limited that bear interest as may be agreed upon from time to time and are repayable on demand. |
| 2 |
The Duntulum Trust and Gloriande NV were both liquidated during the current year which resulted in R567,5 million profit on liquidation of investments in the company (refer to note 6). The intercompany loans with both these entities were combined, which resulted in a net loan receivable from Tiger Brands (Mauritius) Limited to the company. |
| 3 |
The Deli loan was impaired in full in the current year at a company level and included in note 5 (Refer to Annexure A for further details). |
|