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TIGER BRANDS LIMITED
("Tiger Brands" or "the Company")
(Incorporated in the Republic of South Africa)
(Registration number 1944/017881/06)
Share code: TBS
ISIN: ZAE000071080
VOLUNTARY TRADING UPDATE AND TRADING STATEMENT FOR THE 12
MONTHS ENDED 30 SEPTEMBER 2024 AND AN UPDATE ON THE
LISTERIOSIS CLASS ACTION
VOLUNTARY TRADING UPDATE AND TRADING STATEMENT FOR THE 12
MONTHS ENDED 30 SEPTEMBER 2024
Tiger Brands delivered a robust full year performance,
continuing to build on the turnaround reported in the first 6
months to March 2024. Topline performance was marginally ahead
of prior year, reflective of the challenging environment,
while in certain instances volume declines were reflective of
the deliberate pricing correction initiatives previously
implemented. Gross margins and naked margins are anticipated
to reflect a modest recovery on FY23 levels, reflective of the
various cost savings initiatives implemented by Management,
resulting in a marginal improvement in Group operating income.
With the new operating model fully implemented, the group's
performance notably improved in the second half, with the
exception of Home and Personal Care and the Deciduous Fruit
business. Home and Personal Care performance was impacted by
increased competitor activity in the second half of the
Company's fiscal year (H2, FY24); however, the business still
delivered a credible full year performance excluding impact of
disposals. The Deciduous Fruit business performance was
negatively impacted by global fruit puree pricing in the
second half.
Group earnings benefited further from the receipt of insurance
proceeds related to the Value-added Meats business (which was
recognised in profit from discontinued operations in the first
half of the Company's fiscal year (H1, FY24)), an increase in
income from associates, as well as profit on sale of non-core
brands in the first and second half.
Management is pleased to note that the various initiatives
implemented to reduce working capital have proved successful
to date, with a reduction in net working capital balances, an
improvement in our cash conversion and an associated reduction
in net debt (moving into a net cash position in H2) expected
to be reported for the year ended 30 September 2024.
Management continues to implement the portfolio optimization
strategy previously communicated as part of the H1, FY24
results, with a successful disposal of certain non-core Home
and Personal Care brands achieved in H2, FY24, and various
other portfolio rationalisation processes initiated across the
group gaining traction.
Shareholders are accordingly advised that:
' Earnings per share (EPS) from total operations (including
discontinued operations) for the year ended 30 September
2024 is expected to be between +190 cents and +224 cents
higher than the 1 724.7 cents reported in FY23,
representing an increase of between 11% and 13%.
' Headline earnings per share (HEPS) from total operations
(including discontinued operations) for the year ended 30
September 2024 is expected to be between +52 cents and
+87 cents higher than the 1 734.7 cents reported in FY23,
representing an increase of between 3% and 5%.
The primary reason for the difference between HEPS and EPS
relates to, profit on sale of non-core brands.
The financial information contained in the trading update and
trading statement has not been reviewed or reported on by the
Company's auditors.
Tiger Brands' results for the year ended 30 September 2024 are
expected to be released on SENS on or about 4 December 2024.
UDPATE ON THE LISTERIOSIS CLASS ACTION
Since the decision of the Supreme Court of Appeal ("SCA") was
handed down on 4 February 2022, the parties have continued
with pre-trial preparations, including discovery of documents
and records relevant to the class action as required in terms
of the Rules of Court, in order to get the matter ready for
trial for the Court to determine liability. A trial date will
be allocated by Court once all these pre-trial preparations
have been fully attended to.
As part of an overall endeavour to expedite the resolution of
the class action, in January 2023 the attorneys representing
the Company and its insurers (the "Company's attorneys") and
the plaintiffs' attorneys (Richard Spoor Inc.) jointly
approached the National Institute for Communicable Diseases
("NICD") for access to their records relevant to the
listeriosis outbreak. These records are vital to a
determination of liability. In January 2024, the NICD
released the so-called FASTQ files with some data relating to
their investigation of the listeriosis outbreak to the
plaintiffs' attorneys. The files were shared with the
Company's attorneys in February 2024 for review by their
appointed experts. The experts' review of the data is at an
advanced stage but remains ongoing.
The Company's attorneys have engaged with the plaintiffs'
attorneys with a view to agreeing on relief to qualifying
individuals who have urgent medical needs, regardless of the
fact that liability has not yet been determined. In addition,
the legal representatives are engaging on measures to arrive
at a speedier resolution of the class action overall.
The Company is committed to working diligently to bring the
listeriosis class action to a close as speedily as possible.
The Company has product liability insurance cover appropriate
for a group of its size. Coverage is subject to the terms and
limits of the policy.
30 October 2024
Bryanston
Sponsor: J.P. Morgan Equities South Africa Proprietary Limited
Date: 30-10-2024 09:41:00
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