TIGER BRANDS LIMITED - Trading update

Trading update

Tiger Brands Limited
(Incorporated in the Republic of South Africa)
(Registration number 1944/017881/06)
Share code: TBS
ISIN code: ZAE000071080


TRADING UPDATE


The following is the trading update that was tabled at the annual general meeting of
shareholders that was held today.

The domestic trading environment continues to be challenging, characterised by
constrained consumer spending, intense competition and rising input cost inflation.
These factors, which are exacerbated in certain businesses by volatile soft
commodity prices and Rand weakness, have affected the group’s performance and
are likely to persist for some time. The ongoing challenges in the rice market that
were reported at the end of the last financial year remain. Rice turnover for the first
quarter was lower than the turnover for the corresponding prior year period,
notwithstanding a small improvement in volumes and higher raw material input
costs.

The group’s focus on driving efficiencies and optimising cost structures remains a
key strategic thrust in ensuring that the group is able to achieve sustained volume
growth in the future.

The Dangote Flour Mills Plc acquisition was concluded with effect from 4 October
2012 and represents a significant growth opportunity for the group in the medium
term. However, in the short term, as previously indicated, the acquisition will be
earnings dilutive. Operationally, a significant amount of work will be required to
restore the business to an appropriate level of profitability. Some progress has
been achieved; however, the full benefits will only materialise over the next two
years.


Bryanston
12 February 2013


Sponsor:
J.P. Morgan Equities South Africa Proprietary Limited




   
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