Tiger Brands: Integrated annual report 2019

Total revenue for the Exports and International businesses declined by 11% to R3,2 billion, reflecting the challenging trading conditions particularly in Mozambique, as well as foreign currency shortages in Zimbabwe. The adverse performance of Exports was partially offset, however, by a significant recovery in the Deciduous Fruit business.

Revenue in Deciduous Fruit declined by 2% due to lower volumes as the drought in the prior year impacted opening stocks as well as the postponement of certain export shipments into the first quarter of FY20. The business recorded a significantly reduced operating loss of R8 million (2018: R128 million loss) due to favourable foreign exchange positions, as well as the benefits of operational restructuring implemented at the beginning of the year.

In line with the guidance provided earlier in the year, the Exports business was adversely impacted by operational issues in Mozambique, while exports to Zimbabwe were affected by ongoing macro-economic challenges resulting in foreign exchange shortages. Trading in Nigeria was affected by the transition to a new distributor in the first half of the year. Revenue declined by 18% to R1,5 billion, while operating income fell by 84% to R48 million.

In a difficult trading environment, Cameroon-based Chococam recorded a 3% revenue decline in local currency terms, as tactical pricing was implemented to sustain volumes. Revenue in rand terms increased by 3% to R906 million. Operating income was up 8% in rand terms to R172 million (2% in local currency), supported by favourable product mix and tight cost management.