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TIGER BRANDS LIMITED - Unaudited Group Results and dividend declaration for the six months ended 31 March 2013

Release Date: 30/05/2013 07:05
Code(s): TBS     PDF:  
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Unaudited Group Results and dividend declaration
for the six months ended 31 March 2013

Tiger Brands Limited 
Registration number 1944/017881/06
Incorporated in the Republic of South Africa
Share code: TBS ISIN:ZAE000071080
www.tigerbrands.com

 
UNAUDITED GROUP RESULTS AND DIVIDEND DECLARATION
for the six months ended 31 March 2013


  Highlights
  Interim dividend per share           
  310 cents +5,1%     

  Earnings per share   
  824 cents +2,3%      

  Headline earnings per share   
  818 cents +4,0%               
                                
           
COMMENTARY   

OVERVIEW
The on-going economic pressures, resultant constraints on consumer spending and increased competitive intensity in the 
domestic market provide an appropriate context for these results. The group was able to recover 
volumes in certain key categories, notably within the Bakeries, Rice and Snacks & Treats businesses, and maintained 
profit margins across many of the domestic businesses whilst exercising pricing restraint. However, increased 
volatility and inflation in soft commodity prices negatively affected volumes and profit margins in the Milling business 
and  Rice margins were affected by the on-going pricing differential between Thai and Indian rice. The performance of 
the remaining businesses was mixed, with the Culinary, Home and Personal Care businesses affected by intense competitor 
activity whilst most of the other businesses in the group achieved solid results, underpinned by strong volume growth.

The group achieved a significant milestone in executing against its strategic intent of geographic expansion in
concluding its acquisition of a 63,35% interest in the Nigerian based listed company, Dangote Flour Mills (DFM) with 
effect from 4 October 2012. DFM is the second largest flour miller in Nigeria with significant downstream interests in the
production of pasta and noodles. Whilst the DFM business represents a significant growth opportunity for the group over the
medium term, the acquisition has had a dilutive effect on the groups results in the six-month period to 31 March 2013,
due to challenging and competitive market dynamics as well as expensive debt funding in the underlying business. This,
coupled with the back to basics approach being followed to align the business to Tigers operating standards, has
contributed to a volume decline in the short term. 


FINANCIAL RESULTS
Notwithstanding the dilutive effect of the DFM acquisition, the group achieved a 4% growth in headline earnings per
share of 818 cents compared to that achieved in the corresponding period of the previous year. On a like for like basis,
excluding the full impact of the DFM acquisition, headline earnings per share grew by 14% to 897 cents.

Group turnover of R14,0billion grew by 21% largely as a result of DFMs first time contribution to turnover of
R1,6billion. Excluding DFM, group turnover increased by 7% to R12,4billion. Turnover for the domestic businesses increased 
by 6%, driven by pricing inflation of 5% and 1% volume growth. Operating income of R1,7 billion was broadly in line with 
the prior year, notwithstanding the negative contribution from DFM as well as the significant decline in profitability of
the Rice business due to a deliberate focus on volume recovery through pricing restraint on its core brands. Excluding
the impact of Rice and DFM, operating income grew by 9%, driven by a strong performance by the Bakeries, Snacks & Treats,
Baby and the International businesses. The compression in the operating margin from 14,6% to 12,0% was largely related
to the impact of DFM and the change in the pricing dynamics of the Rice business.

Net financing costs increased to R209 million whilst the groups share of income from Associate companies grew by 56%
to R255million due to an excellent performance by all of the groups associate companies. Of note is the performance of
UAC Foods Nigeria, which tripled its profitability in the current period, benefitting from the Fix, Optimise and Grow
strategy adopted since Tiger Brands entry into the business in May 2011. On a constant currency basis, income from
associates grew by 43% and accounted for 19% of group earnings (2012: 13%).

Net income after tax and minority interests grew by 2,6%, benefitting from the groups lower effective tax rate
primarily due to the abolition of STC with effect from 1 April 2012. After adjusting for capital profits, headline earnings
per share increased by 4,0%. 

Cash generated from operations increased by 43% to R1,8billion after taking into account working capital changes.
Working capital utilisation for the period increased by R340million, reflecting a R441million improvement relative to the
comparable prior period movement.

During the period, the group acquired the 63,35% shareholding in DFM for R1,5billion and recognised additional
stand-alone debt of R1,5billion in the underlying business as a result of the acquisition. No additional purchase 
consideration is due for payment in terms of the  earn-out arrangements relating to the acquisition. The group also increased 
its shareholding in Oceana Group Limited by 4,5% at a cost of R314million with effect from 1 March 2013 and invested 
R289million in capital projects during the period. The capital expenditure was mainly in respect of projects aimed at improving 
capacity and manufacturing efficiencies in the domestic business.  The group also successfully upgraded its ERP system over the 
half year-end as part of its journey towards standardising the various ERP platforms across the businesses. Net debt as at 
31 March 2013 increased to R4,6billion (September 2012: R1,2billion), representing a 36% gearing ratio.


OPERATIONAL UPDATE
Grains division
Turnover for the Grains division increased by 6,7% to R4,8billion, with solid volume growth being achieved in the
Bread, Rice and Oats categories. However, operating income decreased by 9% to R724million, largely as a result of the
on-going pressures in the Rice market arising from the pricing differential between Thai and Indian rice and the long 
term view taken by the group in supporting its core rice brands through a difficult trading cycle. This has yielded some 
benefit as Rice volumes increased by 12% during the period. 

The Maize business also underperformed, due to increased competition and significant volatility in soft commodity
prices during the period, which affected the groups procurement positions and depressed margins due to an inability to
fully recover raw material costs through price increases. Excluding Rice and Maize, the rest of the Grains businesses grew
operating income by 7%, with the Bread business achieving volume growth of 4% and strong operating leverage driven by
improved distribution within Albanys core local and traditional customer base. 

The Jungle business achieved strong growth, driven by a solid volume performance and new product innovation. During
the period, Jungle successfully launched the Jungle Oats Berry range and, through its entry into the adjacent ready to eat
category, Jungle Crunchalot, a health-range kids breakfast cereal. Both the Wheat and Sorghum milling businesses
continue to face competitive pricing pressures and significant raw material cost inflation, which negatively affected volumes
during the period.

A number of capital projects were completed during the period, including the successful commissioning of the Hennenman
mill in December 2012 on time and under budget, as well as the quick cooking maize plant in March 2013. The group was
first to market in launching a quick cooking maize meal product, which significantly reduces the cooking time of maize
meal, thereby enhancing consumer convenience.

Consumer brands
The performance of the Consumer Brands businesses was mixed, with certain businesses facing on-going volume and margin
pressures due to intense market competition, whilst other businesses, such as Snacks & Treats, Baby and Out of Home
achieved a solid operating performance, underpinned by strong volume growth.

Turnover for the Groceries business was flat year on year, at R2,0 billion, with raw material cost pressures driving
above inflationary price increases which impacted negatively on volumes and exacerbated the on-going price-driven market
competition. Operating income decreased by 6% to R265million, with operating margins softening by 100 bps to 13,5%,
largely as a result of volume pressures. Tiger remains the market leader within the defined market segment and continues to
drive innovation and value added propositions in order to achieve long-term sustainable growth. A number of capital
projects were initiated during the first half, to improve manufacturing efficiencies and to ensure the groups long term
competitive positioning within the tomato products and mayonnaise segments. The tomato rationalisation project will be
completed during the fourth quarter of the current financial year, whilst the mayonnaise project is expected to be completed
during the second half of the 2014 financial year. In line with the groups strategy of extending its participation
into adjacent categories, the Mrs Balls chutney brand was acquired with effect from 2 April 2013 for a purchase
consideration of R475million, following approval by the Competition Commission.

The Snacks & Treats business grew turnover by 11%, underpinned by volume growth of 7%. Strong operational leverage was
achieved with operating income increasing by 25% to R157million. Most of the divisions core brands performed well and
Beacon continues to maintain its leading market shares in the sugar confectionery category, delivering successfully on
innovation with a number of new market launches. During the period, the group acquired the Mars sugar confectionery
brands in South Africa, thereby re-entering the flat lollies and bubble-gum segments of the market. 

Turnover for the Beverages business increased by 4% to R633million. This was underpinned by volume growth of 3%, with
Oros and Energade maintaining their leading positions notwithstanding on-going pressure from the rapid growth of the
dairy fruit blend segment, which continues to be driven by aggressive competitor activity. Operating income grew by 7% to
R89 million, positively impacted by manufacturing and procurement efficiencies. During the period, the division embarked
on a major capital initiative to improve its manufacturing architecture, through the consolidation of certain of its
facilities and installation of high speed bottling capability to drive long-term competitiveness. This project is expected
to be completed in the second half of the 2014 financial year.

The HPCB division achieved turnover in line with the prior year of R997million, with the Baby business posting a solid
performance, offsetting the weaker performances of the Personal Care and Home Care businesses. The Baby business
achieved turnover and operating income growth of 12% and 20% respectively, underpinned by 4% volume growth. This performance
was driven by the jarred baby foods, cereals and medicinal segments, at a higher margin contribution. Purity maintained
its leading position in the homogenised baby food segment notwithstanding the competitive pressures from new market
entrants. The Homecare division achieved solid volume growth within the pest category, although intense market competition
negatively affected pricing within the category. Volumes in the Personal Care business declined due to the rationalisation
of product lines as well as intense market competition. The renewed focus on core brands through innovation and
improved service levels delivered positive leverage, with operating income growing by 6% to R71million.

Exports and International (excluding Nigeria)
In aggregate, the Exports and International businesses, excluding the Nigerian businesses, achieved 13% growth in
turnover to R1,8billion and operating income growth of 9% to R265million. The negative leverage was mainly attributable to a
weak trading performance by Langeberg & Ashton Foods due to lower sales volumes. This was partially offset by the
benefit of foreign currency gains. Langeberg & Ashton Foods continues to experience weak demand from developed markets and
tight competition coupled with punitive tariff structures in certain markets, which have impeded volume growth. 
Exports performed well over the period, benefitting from strong demand especially from within the SADC countries.

However, operating margins softened slightly due to an adverse sales mix. Davita recorded good volume growth in the second
quarter, following labour disruptions at the start of the year, which negatively affected volumes and its performance for
the half year. The demand for the Jolly Jus and Benny products remains strong and plans are underway to increase
manufacturing capacity in order to meet growing demand.

The East and Central African businesses in Kenya, Ethiopia and Cameroon achieved solid growth in turnover and
earnings, both in local currency and in Rand terms, underpinned by strong volume growth.

Nigeria
DFM faced a number of challenges during the reporting period, which negatively affected sales volumes and the companys
profitability. This arose from industry competition, rising costs, internal operational inefficiencies and weak
financial disciplines. Following Tiger Brands acquisition of a 63,35% interest in the company with effect from 4 October 
2012, management has embarked on a turnaround plan aimed at improved product quality and manufacturing standards, as well 
as the resumption of volume growth through innovation and focussed, revitalised marketing and route to market strategies.
Action has also been taken to strengthen financial disciplines and systems. In line with the groups experience in other 
markets, including Nigeria, it is envisaged that this integration phase will last between two to three years, after which 
it is expected that the DFM business will contribute meaningfully to the groups overall results.

Deli Foods performance remains muted because of capacity limitations. Additional manufacturing capacity is being
added to expand the companys product range and to address manufacturing inefficiencies and reposition the business for
profitable growth going forward. 


OUTLOOK
The group remains focussed on delivering its key strategic objectives of ensuring the long-term growth of its South
Africa operations and the profitable expansion of its business across the balance of the continent. The process of turning
around the Nigerian businesses is well underway and it is expected that the businesses will fully achieve the groups
investment case within a two to three-year timeframe. Significant capital is being invested in the domestic businesses over 
the next 18 months to improve operational efficiencies and position the group to compete more effectively in a value-driven
economy. These initiatives should start to yield results by the second half of the 2014 financial year. In the short term, 
volatility in soft commodity prices and foreign currency movements is likely to persist, exacerbating a tough trading 
environment.

For and on behalf of the Board
André Parker             Peter Matlare
Chairman            Chief Executive Officer            29 May 2013


INTERIM DIVIDEND No 137
The Board has approved and declared an interim dividend of 310 cents per ordinary share (gross) in respect of the six
months ended 31 March 2013.

The dividend will be subject to the Dividends Tax that was introduced with effect from 1 April 2012. In accordance
with paragraphs 11.17 (a) (i) to (x) and 11.17(c) of the JSE Listings Requirements the following additional information 
is disclosed:
 The dividend has been declared out of income reserves;
 The local Dividends Tax rate is 15% (fifteen per centum); 
 There are no Secondary Tax on Companies (STC) credits utilised;
 The gross local dividend amount is 310 cents per ordinary share for shareholders exempt from the Dividends Tax;
 The net local dividend amount is 263,50 cents per ordinary share for shareholders liable to pay the Dividends Tax;
 Tiger Brands has 191 517 468 ordinary shares in issue (which includes 10 326 758 treasury shares); and
 Tiger Brands Limiteds income tax reference number is 9325/110/71/7.
Shareholders are advised of the following dates in respect of the interim dividend: 
Last day to trade cum the interim Dividend                                              Friday, 21 June 2013
Shares commence trading ex the interim dividend                                         Monday, 24 June 2013
Record date to determine those shareholders entitled to the interim Dividend            Friday, 28 June 2013
Payment in respect of the interim Dividend                                              Monday, 1 July 2013
Share certificates may not be dematerialised or re-materialised between Monday, 24 June 2013 and Friday, 28 June 2013,
both days inclusive.
By order of the Board
I W M Isdale            Sandton
Secretary            29 May 2013



  CONDENSED CONSOLIDATED INCOME STATEMENT                                                                                                
                                                                       Unaudited                         Unaudited                
                                                                      Six months                        Six months             Audited   
                                                                           ended                             ended          Year ended   
                                                                        31 March          Change          31 March        30 September   
  Rm                                                                        2013               %              2012                2012   
  Turnover                                                                13 984            20,6            11 591              22 677   
  Cost of sales                                                           (9 583)          (29,3)           (7 414)            (14 466)  
  Gross profit                                                             4 401             5,4             4 177               8 211   
  Sales and distribution expenses                                         (1 617)          (11,6)           (1 449)             (2 863)  
  Marketing expenses                                                        (299)           (3,5)             (289)               (593)  
  Other operating expenses                                                  (804)           (7,2)             (750)             (1 281)  
  Operating income before abnormal items                                    1681            (0,5)            1 689               3 474   
  Abnormal items                                                               8           (55,6)               18                   5   
  Operating income after abnormal items                                    1 689            (1,1)            1 707               3 479   
  Net financing costs                                                       (209)                              (77)               (138)  
  Investment income                                                           10            (9,1)               11                  20   
  Income from associated companies                                           255            55,5               164                 416   
  Profit before taxation                                                   1 745            (3,3)            1 805               3 777   
  Taxation                                                                  (434)           14,7              (509)             (1 029)  
  Profit for the period                                                    1 311             1,2             1 296               2 748   
  Attributable to non-controlling interests                                    4                               (14)                (30)  
  Attributable to owners of the parent                                     1 315             2,6             1 282               2 718   
  Basic earnings per ordinary share (cents)                                824,0             2,3             805,4             1 706,7   
  Diluted basic earnings per ordinary share (cents)                        808,0             3,0             784,7             1 671,5   
  Headline earnings per ordinary share (cents)                             818,3             4,0             786,5             1 689,0   
  Diluted headline earnings per ordinary share                             802,5             4,7             766,3             1 654,2   
  Statement of comprehensive income                                                                                                      
  Profit for the period                                                    1 311             1,2             1 296               2 748   
  Net (loss)/gain on hedge of net investment in foreign operation*            (5)                                7                  (5)  
  Foreign currency translation adjustments*                                  287                               (49)                 (2)  
  Net movement on cash flow hedges*                                          (75)                              (19)                 59   
  Net (loss) on available for sale financial assets*                           -                                (6)                 (1)  
  Tax effect*                                                                  9                                (6)                  1   
  Comprehensive income for the period, net of tax                          1 527                             1 223               2 800   
  Attributable to non-controlling interests                                    4                               (14)                (30)  
  Attributable to owners of the parent                                     1 531            26,6             1 209               2 770   
  *Items that may subsequently be reclassified to profit or loss.



  CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION                                                     
                                                Unaudited        Unaudited             Audited   
                                                    as at            as at          Year ended   
                                                 31 March         31 March        30 September   
  Rm                                                 2013             2012                2012   
  ASSETS                                                                                         
  Non-current assets                               13 908            9 857              10 070   
  Property, plant and equipment                     5 937            3 318               3 359   
  Goodwill                                          3 053            2 361               2 361   
  Intangible assets                                 1 801            1 660               1 651   
  Deferred taxation asset                              38                -                  44   
  Investments                                       3 079            2 518               2 655   
  Current assets                                   10 005            7 569               7 784   
  Inventories                                       4 618            3 943               3 658   
  Trade and other receivables                       4 798            3 233               3 755   
  Cash and cash equivalents                           589              393                 371   
                                                                                                 
  TOTAL ASSETS                                     23 913           17 426              17 854   
  EQUITY AND LIABILITIES                                                                         
  Issued capital and reserves                      11 960           10 202              11 303   
  Non-controlling interests                           963              381                 393   
  TOTAL EQUITY                                     12 923           10 583              11 696   
  Non-current liabilities                           2 511            1 095                 936   
  Deferred taxation liability                         362              309                 294   
  Provision for post-retirement medical aid           480              391                 407   
  Long-term borrowings                              1 669              395                 235   
  Current liabilities                               8 479            5 748               5 222   
  Trade and other payables                          4 293            2 810               3 257   
  Provisions                                          540              508                 515   
  Short-term borrowings                             3 526            2 402               1 318   
  Taxation                                            120               28                 132   
                                                                                                 
  TOTAL EQUITY AND LIABILITIES                     23 913           17 426              17 854   
  Net debt                                          4 606            2 404               1 182   




  CONDENSED CONSOLIDATED CASH FLOW STATEMENT                                                                                   
                                                                                     Unaudited     Unaudited            
                                                                                   Six months     Six months         Audited   
                                                                                        ended          ended      Year ended   
                                                                                      31 March      31 March    30 September   
  Rm                                                                                      2013          2012            2012 
  Cash operating profit/(loss)                                                           2 165         2 057           4 224
  Working capital changes                                                                 (340)         (781)           (592)
  Cash generated from operations                                                         1 825         1 276           3 632   
  Financing costs net of dividends received                                                (81)           17              58  
  Taxation paid                                                                           (550)         (574)         (1 058)  
  Cash available from operations                                                         1 194           719           2 632   
  Dividends paid                                                                          (911)         (831)         (1 318)  
  Net cash inflow/(outflow) from operating activities                                      283          (112)          1 314   
  Net cash outflow from investing activities                                            (2 145)         (615)           (732)  
  - Capital expenditure                                                                   (289)         (238)           (480)  
  - Acquisitions                                                                        (1 868)         (433)           (317)  
  - Proceeds from disposal of assets                                                        13             -              61   
  - Other movements                                                                         (1)           56               4   
                                                                                                                             
  Net cash inflow/(outflow) from financing activities                                      954          (197)           (297)  
  - Proceeds from issue of share capital                                                    19            18              25   
  - Acquisition of additional shares in Langeberg & Ashton Foods                             -             -             (90)  
  - Long & short term borrowings raised/(repaid)                                           935          (215)           (232)  
                                                                                                                               
  Net (decrease)/increase in cash and cash equivalents                                    (908)         (924)            285   
  Effect of exchange rate changes                                                           19           (24)             (8)  
  Cash and cash equivalents at the beginning of the period                                (735)       (1 012)         (1 012)  
  Cash and cash equivalents at the end of the period                                    (1 624)       (1 960)           (735)  
  Cash resources                                                                           589           393             371   
  Short term borrowings regarded as cash and cash equivalents                           (2 213)       (2 353)         (1 106)  
                                                                                                                               


																															   
  OTHER SALIENT FEATURES                                                                         
                                                               Unaudited         Unaudited                
                                                              Six months        Six months             Audited
                                                                   ended             ended          Year ended
                                                                31 March          31 March        30 September   
  Rm                                                                2013              2012                2012   
  Capital Commitments                                              1 078               489                 421   
  - Contracted                                                       168               237                 105   
  - Approved                                                         910               252                 316                                                                                                                   
  Contingent liabilities                                                                                         
  - guarantees and contingent liabilities                             20                48                  19   

  
  

  CONDENSED SEGMENTAL ANALYSIS                                                                                   
                                                       Unaudited     Unaudited                                   
                                                      six months    six months                     Audited       
                                                           ended         ended                  year ended       
                                                        31 March      31 March                30 September       
  Rm                                                        2013          2012    Change %            2012       
  Turnover                                                                                                       
  Domestic Operations                                     10 332         9 778         5,7          19 043       
   Grains                                                  4 762         4 464         6,7           8 854       
      Milling and baking                                   3 463         3 281         5,5           6 682       
      Other Grains                                         1 299         1 183         9,8           2 172       
      Consumer Brands                                      5 570         5 314         4,8          10 190       
      Groceries                                            1 961         1 953         0,4           3 772       
      Snacks & Treats                                        953           861        10,7           1 762       
      Beverages                                              633           611         3,6             990       
      Value Added Meat Products                              822           732        12,3           1 450       
      Out of Home                                            204           159        28,3             351       
      Home, Personal care and Baby                           997           998        (0,1)          1 865       
   Domestic intergroup sales                                   -             -           -              (1)      
  Exports & International                                  3 652         1 813       101,4           3 634       
   Exports and international*                              1 823         1 619        12,6           3 244       
   Nigeria                                                 1 829           194                         390       
                                                                                                                 
  Total turnover                                          13 984        11 591        20,6          22 677       
  
  Operating income before abnormal items                                                                         
  Domestic Operations                                      1 473         1 437         2,5           3 023       
   Grains                                                    724           794        (8,8)          1 732       
      Milling and baking                                     622           610         2,0           1 473       
      Other Grains                                           102           184       (44,6)            259       
      Consumer Brands                                        854           810         5,4           1 522       
      Groceries                                              265           283        (6,4)            539       
      Snacks & Treats                                        157           126        24,6             267       
      Beverages                                               89            83         7,2             101       
      Value Added Meat Products                               54            50         8,0              93       
      Out of Home                                             40            29        37,9              68       
      Home, Personal care and Baby                           249           239         4,2             454       
   Other                                                    (105)         (167)       37,1            (231)      
  Exports & International                                    208           252       (17,5)            451       
   Exports and international*                                265           244         8,6             459       
   Nigeria                                                   (57)            8                          (8)      
                                                                                                                 
  Total operating income before abnormal items             1 681         1 689        (0,5)          3 474       
  *Excludes Nigerian businesses, comparatives restated accordingly.                                                                   



  CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                                                                                                                                                                   
                                                                                                                                        Shares held  
                                                                                    Share               Non-                               by subsidiary  
                                                                                  capital       distributable          Accumulated       and empowerment   
  Rm                                                                              premium           reserves               profits              entities  
  Balance at 1 October 2011                                                            70              1 189                10 979               (2 676)  
  Net profit                                                                            -                  -                 1 282                    -   
  Other comprehensive income                                                            -                (73)                    -                    -   
                                                                                       70              1 116                12 261               (2 676)  
  Issue of share capital and premium                                                   18                  -                     -                    -   
  Acquisition of additional shares in Langeberg & Ashton Foods                          -                (72)                    -                    -   
  Transfers between reserves                                                            -                 81                   (81)                   -   
  Share-based payment reserve                                                           -                  -                     -                    -   
  Dividends on ordinary shares (net of dividend on treasury shares)                     -                  -                  (831)                   -   
  Balance at 31 March 2012                                                             88              1 125                11 349               (2 676)  
  Net profit                                                                            -                  -                 1 436                    -   
  Other comprehensive income                                                            -                125                     -                    -   
                                                                                       88              1 250                12 785               (2 676)  
  Issue of share capital and premium                                                    7                  -                     -                    -   
  Transfers between reserves                                                            -                159                  (159)                   -   
  Share-based payment reserve                                                           -                  -                     -                    -   
  Dividends on ordinary shares (net of dividend on treasury shares)                     -                  -                  (483)                   -   
  Balance at 30 September 2012                                                         95              1 409                12 143               (2 676)  
  Net profit                                                                            -                  -                 1 315                    -   
  Other comprehensive income                                                            -                216                     -                    -   
                                                                                       95              1 625                13 458               (2 676)  
  Issue of share capital and premium                                                   19                  -                     -                    -   
  Recognition of minority interests in Dangote Flour Mills Plc                          -                  -                     -                    -   
  Transfers between reserves                                                            -                137                  (137)                   -   
  Share-based payment reserve                                                           -                  -                     -                    -   
  Dividends on ordinary shares (net of dividend on treasury shares)                     -                  -                  (908)                   -   
  Sale of shares                                                                        -                  -                     -                    1   
  Balance at 31 March 2013                                                            114              1 762                12 413               (2 675)  


    CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY continued                                                                                                                                                                
                                                                                                        Total              
                                                                              Share-based        attributable                                      
                                                                                  payment        to owners of        Non-controlling               Total    
  Rm                                                                              reserve          the parent              interests              equity   
  Balance at 1 October 2011                                                           298               9 860                    386              10 246   
  Net profit                                                                            -               1 282                     14               1 296   
  Other comprehensive income                                                            -                 (73)                     -                 (73)  
                                                                                      298              11 069                    400              11 469   
  Issue of share capital and premium                                                    -                  18                      -                  18   
  Acquisition of additional shares in Langeberg & Ashton Foods                          -                 (72)                   (19)                (91)  
  Transfers between reserves                                                            -                   -                      -                   -   
  Share-based payment reserve                                                          18                  18                      -                  18   
  Dividends on ordinary shares (net of dividend on treasury shares)                     -                (831)                     -                (831)  
  Balance at 31 March 2012                                                            316              10 202                    381              10 583   
  Net profit                                                                            -               1 436                     16               1 452   
  Other comprehensive income                                                            -                 125                      -                 125   
                                                                                      316              11 763                    397              12 160   
  Issue of share capital and premium                                                    -                   7                      -                   7   
  Transfers between reserves                                                            -                   -                      -                   -   
  Share-based payment reserve                                                          16                  16                      -                  16   
  Dividends on ordinary shares (net of dividend on treasury shares)                     -                (483)                    (4)               (487)  
  Balance at 30 September 2012                                                        332              11 303                    393              11 696   
  Net profit                                                                            -               1 315                     (4)              1 311   
  Other comprehensive income                                                            -                 216                                        216   
                                                                                      332              12 834                    389              13 223   
  Issue of share capital and premium                                                    -                  19                      -                  19   
  Recognition of minority interests in Dangote Flour Mills Plc                          -                   -                    577                 577   
  Transfers between reserves                                                            -                   -                      -                   -   
  Share-based payment reserve                                                          14                  14                      -                  14   
  Dividends on ordinary shares (net of dividend on treasury shares)                     -                (908)                    (3)               (911)  
  Sale of shares                                                                        -                   1                      -                   1   
  Balance at 31 March 2013                                                            346              11 960                    963              12 923   



  NOTES                                                                
                                                                                       Unaudited         Unaudited             Audited   
                                                                                      Six months        Six months          Year ended   
                                                                                           ended             ended        30 September   
                                                                                        31 March          31 March                2012   
  Rm                                                                                        2013              2012                       
  1.    Operating income before abnormal items                                                            
        Depreciation (included in cost of sales and other operating expenses)                344               208                 426   
        Amortisation                                                                          22                11                  20   
        IFRS 2 (included in other operating expenses)                                                            
        -- Equity settled                                                                     20                19                  36   
        -- Cash settled                                                                       74               113                 142   
  2.    Abnormal items                                                            
        Advisory and due diligence costs                                                      (8)              (18)                (25)  
        Net profit on disposal of property, plant and equipment and intangibles               11                35                  36   
        Other                                                                                  5                 1                  (6)  
        Abnormal profit before taxation                                                        8                18                   5   
        Taxation                                                                              (2)              (5)                  (6)  
        Abnormal profit attributable to owners of the parent                                   6                13                  (1)  

  3.    Reconciliation between profit for the period and headline earnings                                                            
        Profit attributable to ordinary shareholders                                       1 315             1 282               2 718  
        Adjusted for:       
        Profit on sale of assets                                                              (9)              (30)                (35)  
        Impairment of assets                                                                   -                 -                   7   
        Headline earnings for the period                                                   1 306             1 252               2 690    
                                                                    
  4.    Business combinations                                                            
        2013                                                            
        Dangote Flour Mills Plc (DFM)                                                            
        On 4 October 2012, Tiger Brands acquired 63,35% of the issued share capital of Dangote Flour Mills Plc (DFM), for the purchase consideration of 
	R1,5 billion. In accordance with IFRS3 the Purchase Price Allocation will be completed within 12 months of the acquisition date by no later than 
        30 September 2013.                                                             
        The abridged group interim results have been prepared in accordance with International Financial Reporting Standards (IFRS), IAS 34: Interim 
	Financial Reporting as issued by the Accounting Practices Board, the South African Companies Act (No 71 of 2008, as amended) and the Listings 
	Requirements of the JSE Limited. The principal accounting policies and methods of computation are consistent with those used in the audited Annual 
	Financial Statements for the year ended 30 September 2012.           

	   
  PREPARATION OF RESULTS                                                                
  The preparation of these results has been supervised by O Ighodaro, Chief Financial Officer of Tiger Brands Limited.                                                                


Independent non-executive directors
A C Parker (Chairman), B L Sibiya (Deputy Chairman), S L Botha, R M W Dunne (British), 
K D K Mokhele, M P Nyama, R D Nisbet, M Makanjee, M J Bowman

Executive directors
P B Matlare (Chief Executive Officer), C F H Vaux, O Ighodaro (Chief Financial Officer)(Nigerian)

Company Secretary
I W M Isdale

Share registrars
Computershare Investor Services (Pty) Limited, 70 Marshall Street, Johannesburg, 2001
Postal address
PO Box 61051, Marshalltown, 2107, South Africa.
Telephone
(011) 370 5000

Telephone: 
011 840 4000

Facsimile: 
011 514 0477

Physical address: 
Tiger Brands Limited, 3010 William Nicol Drive, Bryanston
Postal address: 
PO Box 78056, Sandton, 2146, South Africa

www.tigerbrands.com
Date: 30/05/2013 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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