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Updated trading statement for the year ended 30 September 2020
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
Updated trading statement for the year ended 30 September 2020
Shareholders are referred to the trading update and statement
released on SENS on 21 August 2020.
Further to this announcement, shareholders are advised of the
revised ranges as follows:
- Earnings per share (EPS) from total operations is expected
to be between 72% and 75% (or between 1 680 cents and 1 750
cents) lower than the 2 333 cents reported last year.
- Headline earnings per share (HEPS) from total operations is
expected to be between 27% and 30% (or between 357 cents and
397 cents) lower than the 1 322 cents reported last year.
- EPS from continuing operations (excluding Deli Foods &
Value-Added Meat Products (VAMP)) is expected to be between
65% and 68% (or between 1 701 cents and 1 780 cents) lower
than the 2 617 cents reported last year.
- HEPS from continuing operations (excluding Deli Foods &
VAMP) is expected to be between 22% and 25% (or between 342
cents and 389 cents) lower than the 1 556 cents reported
last year.
As indicated in the trading statement of 21 August 2020, the
various earnings ranges provided in terms of EPS did not include
any further impairments to those recorded at 31 March 2020.
Following further assessments of the carrying value of the
Company’s intangible assets and investments, an additional
impairment of R43 million was recognised in respect of an
associate. Impairments are excluded for the purposes of
calculating headline earnings per share.
In addition, EPS in the previous financial year benefited from
the surplus of R2 billion arising from the fair value gain
relating to the unbundling of the Company’s interest in Oceana
Group Holdings Limited (Oceana), including the capital profit
realised on the disposal of the Company’s residual shareholding
in Oceana.
The improvement in the respective HEPS’ ranges from both total
and continuing operations relative to the trading statement of 21
August 2020, is as a result of a better than anticipated
operating income performance in the second half, which was
supported by virtually no disruptions to the supply chain in
August and September as Covid-19 infections slowed significantly,
as well as sustained demand domestically, particularly in most
Breakfast offerings, Pasta, Groceries, Home Care and a marginal
recovery in Snacks & Treats. In addition, improved performances
were achieved from Cameroon and other export markets whilst a
better than anticipated performance from Carozzi aided income
from associates. Profitability also benefitted from improved cost
and efficiency management in the last quarter. Despite this,
operating income for the second six months is likely to be lower
than the same period last year, with further gross margin
compression evident.
The Company’s results for the year ended 30 September 2020 are
expected to be released on SENS on or about 20 November 2020.
The information above has not been reviewed or reported on by the
Company's auditors.
Bryanston
2 November 2020
Sponsor
JP Morgan Equities South Africa Proprietary Limited
Date: 02-11-2020 08:39:00
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