Johannesburg, 4 December 2024 – Tiger Brands has delivered a robust set of results for the year ended 30 September 2024, with performance in the second half exceeding expectations.
Total revenue for the year increased by 1% to R37,7 billion, driven by price inflation of 7% and offset by volume declines of 6%. Strong volume growth in Exports and International of 6% and 5% respectively, was offset by volume declines of 8% in the domestic business. In the domestic market, Tiger Brands Food Services Solutions, Beverages and Pasta categories showed commendable volume growth. Notable volume recovery in the domestic market across categories was also realised during the second half, with volume declines slowing to 2% compared to the prior year.
During the year, the company disposed of a number of non-core brands, generating R241 million in non-operational profit for the group. In November 2024, Tiger Brands announced that it had reached a sale of business agreement to dispose of its Baby Wellbeing business as part of ongoing efforts to shape its portfolio and prioritise categories where the company believes it has the ‘right to win.’
The company declared a final ordinary dividend of 684 cents per share for the reporting period bringing the total dividend for the year to 1 034 cents per share.
“The shift in performance momentum during the second half of the year was the result of agile and focused management teams and excellent execution across various improvement initiatives. With our new federated operating model implemented and improvement in performance driving passion and internal pride, our teams are energised to deliver on our vision to grow Tiger Brands by placing the consumer at the heart of our business.
“While we are seeing encouraging green shoots in lower levels of consumer price inflation and modest cuts in interest rates, consumers remain under pressure. Our efforts to deliver affordable products for consumers through continuous improvement initiatives and cost leadership across our business, will remain a priority and key enabler of growth,” says Tjaart Kruger, Chief Executive Officer, Tiger Brands.
Tiger Brands produces some of South Africa’s most iconic homegrown consumer brands. Driving brand relevance with consumers through focused and effective marketing investments is core to the group’s growth ambitions. During the reporting period, five of the company’s Power Brands (Albany, Koo, Tastic, All Gold and Purity) were named in the 2024 Kantar Most Valued Brands report.
Further progress was made in ensuring a superior presence of the company’s portfolio of brands across channels, making the right brand and packs available at prices affordable to consumers at the point of sale. Ecommerce sales during the reporting period grew by 54% in bricks and clicks, while the company’s General Trade programme expanded to serve more than 91 000 additional stores in key urban areas.
The company continued to advance black economic empowerment and strengthen local economies through its business activities. Eighty-six percent (86%) of total procurement spend during the year was channelled to local suppliers (including municipalities, public sector companies, and international suppliers with a local presence). R14,3 billion was spent with B-BBEE-verified suppliers, including R5,4 billion spent with black-owned enterprises and R4,7 billion spent with black women-owned enterprises.
Tiger Brands recognises sustainable agricultural sourcing as a strategic enabler and remains focused on strengthening its local and regional sourcing programmes. During the reporting period, 92% of the company’s grains requirement (excluding rice) was sourced locally. In addition, 100% of its fruit and vegetables input requirements were sourced locally.
While sentiment around South Africa’s economic prospects have somewhat improved, weak economic growth, poverty, inequality and high unemployment remain a significant challenge with many households struggling to meet basic nutritional needs. For the year ended 30 September 2024, investment of R28,8 million was made towards socio-economic development programmes to improve livelihoods, including nutrition support for vulnerable households. In addition, the Tiger Brands Foundation served 14 million breakfasts to 74 465 learners nationally.
“A year ago, we set out to restore the roar to Tiger Brands and we have made important gains since. We are very clear that a growing, and roaring Tiger Brands delivers sustainable value for all our stakeholders, including our employees, our customers, consumers, business partners and communities,” concludes Tjaart Kruger, Chief Executive Officer, Tiger Brands.
To access the group results and dividend declaration for the year ended 30 September 2024, click here
