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TIGER BRANDS LIMITED - Unaudited group results for the six months ended 31 March 2014

Release Date: 21/05/2014 07:30
Code(s): TBS     PDF:  
Wrap Text
Unaudited group results for the six months ended 31 March 2014

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

Unaudited group results for the six months ended 31 March 2014


Commentary
OVERVIEW
Notwithstanding the tough trading conditions that continue to prevail in the domestic market, the group is making
steady progress in implementing key strategic initiatives aimed at regaining market shares and further strengthening 
its core brands. The group experienced significant cost inflation in its domestic businesses in the current period, 
partly due to the rapid decline in the Rand exchange rate. This was not fully recovered in pricing and negatively 
impacted on margins, especially in the first quarter. Pricing has since been adjusted to restore margins and 
improve profitability; however, the group continues to partially absorb cost increases in a number of categories, 
mitigating the impact, where possible, through cost reduction initiatives and improved efficiencies. With the 
exception of Dangote Flour Mills, the International businesses, including Exports, have continued to deliver 
pleasing growth.


DANGOTE FLOUR MILLS (“DFM”)
Tiger Brands is focusing its attention on enhancing the long-term prospects of its investment in DFM. In this regard,
the Board of Tiger Brands continues to believe that Nigeria is central to the group’s long-term expansionary ambitions.
Short- to medium-term action plans are being implemented to turn around the performance of the business. These include
reducing DFM’s fixed cost base, mothballing of mills where appropriate, and rebuilding the brand equity of its product
basket, which has suffered from quality issues and internal inefficiencies. 

In addition to the above, Tiger Brands, together with DFM, is in the process of evaluating a number of key strategic
initiatives aimed at rapidly expanding the business into more sustainable, value-added categories. At this stage, there
is still a significant amount of work that needs to be completed to properly evaluate these new category opportunities
which, if they prove viable, should enhance margins and improve the capacity utilisation of the existing DFM assets. 

Given the current underperformance of DFM and the excess milling capacity that continues to increase in the Nigerian
flour market, it was considered appropriate to carry out a review of the carrying value of the Company’s investment in
DFM. As it is not possible, at this stage, to accurately assess with any degree of certainty, the potential impact that
the aforementioned category initiatives could have, a decision has been taken to impair the full carrying value of the
goodwill and intangible assets relating to the investment. The value of the impairment, amounting to R849 million, has 
been included as an abnormal item in the group income statement for the period under review. 

The carrying value of the Company’s investment in DFM will be re-evaluated at the end of the financial year. At that
time, the Company will be able to assess the impact of the recent actions that would have been implemented, as well 
as the results of its review of the new category opportunities in DFM.


FINANCIAL REVIEW
Turnover from continuing operations for the six months ended 31 March 2014, which amounted to R14,9 billion, was 11%
higher than the corresponding figure in the prior year. The Dangote AgroSacks business, which was disposed of by DFM 
in December 2013, for a consideration of Naira 7,5 billion (R497million), has been accounted for as a discontinued 
operation for the period up until its disposal. This is consistent with the accounting treatment adopted in the 
financial year ended 30 September 2013. 

The group’s overall gross margin declined by 0,9% to 30,9%, negatively influenced by the inflationary effects of 
the weak Rand on input costs, which were not fully recovered in pricing in the South African operations. The 
operating margin declined by 0,2% to 11,5%, benefiting from a R3,1 million IFRS 2 share-based payment credit 
compared to a charge of R93,8 million in the corresponding prior period. 

Turnover for the domestic businesses of R11,2 billion showed an improvement of 8%, whereas the Export and
International businesses, including Nigeria, grew turnover by 20% to R3,7 billion, benefiting to an extent from 
the weaker Rand. 

Domestic sales volumes increased by 4%, with selling price increases generally in line with or below inflationary
levels. Sales volumes achieved by the Export and International businesses (excluding Nigeria) were strong, but this 
was offset by pressure on volumes at DFM, primarily due to intense competitor activity. 

The operational performance in the first half was mixed, with the Grains division achieving pleasing growth especially
within the MillBake and the Breakfast categories. The domestic performance was weighed down by a weaker result in the
Maize, Groceries and HPCB businesses. Realisations in the Groceries business were maintained in the first quarter in
order to stimulate volume recovery. This objective was successfully achieved with strong volume growth and improved 
market shares recorded in the quarter. However, rising input costs resulted in significant margin erosion, which should 
ease over the balance of the year, as pricing is adjusted to partially absorb the higher costs. The Homecare and 
Personal care businesses continue to face stiff competition in the market as competitors increase their promotional 
activity. Plans are underway to drive innovation more aggressively in these categories and to refocus on core brands.

The strategic cost saving projects that commenced in the previous year remain on track, with the relocation of the
tomato paste plant to Musina as well as the consolidation of the beverage facilities at Roodekop having been 
successfully completed. Initial supply constraints were experienced in the Beverage business; however, these have 
now been largely resolved. The standardisation and rollout of various IT systems across the group are scheduled for 
completion in the second half of 2015.

The Export and International businesses outside Nigeria continue to show strong growth, benefiting to some extent from
the Rand’s relative weakness. Trading conditions in the Nigerian market remain challenging and DFM has continued to
sustain operating losses in the period, primarily because of on-going top-line pressures. In addition, the impact of
significant price discounting in a market that has over-capacity continues to place pressure on margins. 
As indicated above, the turnaround in the performance of DFM over the medium term remains a key objective, which is 
receiving focused management attention.

Operating income for the period of R1,7 billion is 9% higher than in the corresponding prior period. 

Net financing costs increased as a result of higher average debt levels whilst the overall effective tax rate
benefited from special incentive allowances granted in respect of qualifying capital projects.

Income from associate companies grew by 4% to R266 million, with good performances recorded by Oceana, UAC Foods 
and National Foods Holdings. However, the share of profits from Empresas Carozzi was well below the previous 
year. This was primarily due to increased market competition and crop failure in the domestic deciduous fruit 
market, which affected the supply of certain key products.

As outlined above, the group has impaired the full carrying value of the goodwill and intangible assets relating 
to its investment in DFM. Excluding this impairment, earnings per share from continuing operations increased by 
9% to 877 cents per share, whilst headline earnings per share from continuing operations increased by 7% to 
856 cents. After taking the impairment into account, earnings per share from continuing operations declined by 
53% to 376 cents. The impairment has had no effect on headline earnings from continuing operations, which remain 
unchanged at 856 cents per share.


INTERIM DIVIDEND
The Company has declared an interim dividend of 329 cents per share for the half year ended 31 March 2014, which 
represents an increase of 6% compared to the 2013 interim dividend of 310 cents per share. Shareholders are 
referred to the dividend announcement below for further details.


OUTLOOK
The Board remains confident that the group’s strategies are appropriate for the businesses and will ultimately 
deliver the desired outcomes. 

Trading conditions in the domestic market continue to be challenging, with ongoing volume pressures resulting from 
continued constraints on consumer spending and rising inflation. This is exacerbated by a highly competitive 
landscape with limited volume growth in many FMCG categories. Margin pressures should ease over the balance of the 
year as pricing is adjusted to partly offset the higher input costs. However, this could negatively affect volumes.

The improvement in the performance of DFM remains a key priority for the group and the action plans being 
implemented are aimed at reducing the rate of losses being sustained by the business over the balance of the 
financial year. Exports and the remainder of the International businesses are expected to continue to deliver 
strong growth, albeit at a slower pace given the recent strengthening of the Rand exchange rate.

For and on behalf of the Board 

AC Parker                                     PB Matlare
Chairman                                      Chief Executive Officer
20 May 2014


DECLARATION OF INTERIM DIVIDEND NO 139
The Board has approved and declared an interim dividend of 329 cents per ordinary share (gross) in respect 
of the six months ended 31 March 2014. 
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 329 cents per ordinary share for shareholders exempt from the Dividends Tax;
• The net local dividend amount is 279,65 cents per ordinary share for shareholders liable to pay the Dividends Tax;
• Tiger Brands has 191 896 268 ordinary shares in issue (which includes 10 326 758 treasury shares); and
• Tiger Brands Limited’s 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, 20 June 2014           
  Shares commence trading ex the interim dividend                                        Monday, 23 June 2014          
  Record date to determine those shareholders entitled  to the interim dividend          Friday, 27 June 2014        
  Payment in respect of the interim dividend                                             Monday, 30 June 2014                    

Share certificates may not be dematerialised or re-materialised between Monday, 23 June 2014 and Friday, 
27 June 2014, both days inclusive.

By order of the Board
IWM Isdale
Secretary
Sandton
20 May 2014



  Interim condensed consolidated income statement                                                                                    
                                                                                                                                     
                                                  Unaudited six                    Unaudited six                       
                                                   months ended                     months ended          Year ended   
                                                       31 March                         31 March        30 September   
                                                           2014        Change %             2013                2013   
  R’million                              Notes                                        Restated*#           Restated*   
  Turnover                                             14 926,9              11         13 443,2            27 003,5   
  Cost of sales                                      (10 319,3)            (13)        (9 171,7)          (18 565,7)   
  Gross profit                                          4 607,6               8          4 271,5             8 437,8   
  Sales and distribution expenses                     (1 753,1)             (9)        (1 609,0)           (3 143,4)   
  Marketing expenses                                    (377,7)            (26)          (298,8)             (649,9)   
  Other operating expenses                              (762,5)               4          (794,0)           (1 561,7)   
  Operating income before 
  abnormal items                             2          1 714,3               9          1 569,7             3 082,8   
  Abnormal items                             3          (835,7)                              7,5               (2,4)   
  Operating income after                                  878,6            (44)          1 577,2             3 080,4   
  abnormal items                                                                                                       
  Net finance costs                                     (206,3)            (17)          (176,2)             (378,8)   
  Investment income                                         1,2            (88)              9,9                17,0   
  Income from associated companies                        265,9               4            255,2               515,1   
  Profit before taxation                                  939,4            (44)          1 666,1             3 233,7   
  Taxation                                              (412,4)             (1)          (409,7)             (836,6)   
  Profit for the period from 
  continuing operations                                   527,0            (58)          1 256,4             2 397,1   
  Profit for the period from 
  discontinued operation                     6             41,0            (29)             57,8               158,0   
  Profit for the period                                   568,0            (57)          1 314,2             2 555,1   
  Attributable to:                                                                                                     
  Owners of the parent                                    631,9            (52)          1 319,1             2 576,7   
  - Continuing operations                                 602,0            (53)          1 288,8             2 516,0   
  - Discontinued operation                                 29,9             (1)             30,3                60,7   
  Non-controlling interest                               (63,9)                            (4,9)              (21,6)   
  - Continuing operations                                (75,0)           (132)           (32,4)             (118,9)   
  - Discontinued operation                                 11,1            (60)             27,5                97,3   
                                                                                                                       
                                                          568,0            (57)          1 314,2             2 555,1   
  *The amounts have been restated due to the adoption of IAS 19R.                                                                                  
  #The amounts have been restated as required by IFRS 5 with disclosure of a discontinued operation.            




  Interim condensed consolidated income statement (continued)                                                                         
                                                                                                                      
                                                 Unaudited six                    Unaudited six                       
                                                  months ended                     months ended          Year ended   
                                                      31 March                         31 March        30 September   
                                                          2014        Change %             2013                2013   
  R’million                                                                          Restated*#           Restated*   
  Basic earnings per share (cents)                       395,0             (52)           826,2             1 612,9   
  - Continuing operations                                376,3             (53)           807,2             1 574,9   
  - Discontinued operation                                18,7              (2)            19,0                38,0   
  Diluted basic earnings per share (cents)               386,7             (52)           810,2             1 572,9   
  - Continuing operations                                368,4             (54)           791,6             1 535,8   
  - Discontinued operation                                18,3              (2)            18,6                37,1   
                                                                                                                      
  Headline earnings per share (cents)                    866,8               6            820,6             1 628,6   
  - Continuing operations                                855,5               7            801,6             1 574,3   
  - Discontinued operation                                11,3            (41)             19,0                54,3   
  Diluted headline earnings per share (cents)            848,7               6            804,7             1 588,1   
  - Continuing operations                                837,6               7            786,1             1 535,2   
  - Discontinued operation                                11,1            (40)             18,6                52,9   
  Excluding DFM impairment - continuing operations                                                                               
  Basic earnings per share (cents)                       877,4               9            807,2             1 574,9   
  Diluted basic earnings per share (cents)               859,1               9            791,6             1 535,8   
  *The amounts have been restated due to the adoption of IAS 19R.                                                                         
  #The amounts have been restated as required by IFRS 5 with disclosure of a discontinued operation.                                                                         




  Statement of comprehensive income                                                                                                         
                                                                                                                                             
                                                              Unaudited six        Unaudited six                       
                                                               months ended         months ended          Year ended   
                                                                   31 March             31 March        30 September   
                                                                       2014                 2013                2013   
  R’million                                          Notes                             Restated*           Restated*   
  Profit for the period                                               568,0              1 314,2             2 555,1   
  Other comprehensive income                                         (26,2)                231,5               523,6   
  Net loss on hedge of net investment 
  in foreign operation(1)                                             (9,9)                (4,6)              (40,1)   
  Foreign currency translation adjustments(1)                          35,7                286,8               512,5   
  Net loss on cash flow hedges(1)                                     (4,2)               (75,5)              (57,3)   
  Net (loss)/gain on available for sale 
  financial assets(1)                                                (53,0)                (0,1)                53,0   
  Actuarial gain released in terms of IAS 19R            7                -                 21,6                43,1   
  Tax effect                                                            5,2                  3,3                12,4   
                                                                                                                       
  Total comprehensive income for the period                           541,8              1 545,7             3 078,7   
  Attributable to:                                                                                                     
  Owners of the parent                                                574,9              1 550,6             2 974,3   
  Non-controlling interest                                           (33,1)                (4,9)               104,4   
                                                                      541,8              1 545,7             3 078,7   
  (1) Items that may subsequently be reclassified to profit or loss. During the current period, 
      R94,3 million of the foreign currency translation reserve, relating to Dangote Agrosacks, was 
      reclassified to profit or loss.                                                                      
  *The amounts have been restated due to the adoption of IAS 19R.                                                                            




  Interim condensed consolidated statement of financial position                                                       
                                                                                                                   
                                                    Unaudited         Unaudited                       
                                                        as at             as at               As at   
                                                     31 March          31 March        30 September   
                                                         2014              2013                2013   
  R’million                                                           Restated*           Restated*   
  ASSETS                                                                                              
  Non-current assets                                 13 852,4          13 950,2            14 510,1   
  Property, plant and equipment                       5 736,6           5 936,8             5 498,7   
  Goodwill                                            2 440,6           3 052,6             3 173,2   
  Intangible assets                                   2 151,7           1 800,5             2 251,4   
  Investments                                         3 322,3           3 079,2             3 413,3   
  Deferred taxation asset                               201,2              81,1               173,5   
  Current assets                                     10 070,7          10 015,0             9 485,5   
  Inventories                                         4 882,8           4 618,4             4 652,7   
  Trade and other receivables                         4 502,9           4 808,0             4 199,9   
  Cash and cash equivalents                             685,0             588,6               632,9   
  Assets classified as held-for-sale                        -                 -             1 280,7   
  TOTAL ASSETS                                       23 923,1          23 965,2            25 276,3   
  EQUITY AND LIABILITIES                                                                              
  Issued capital and reserves                        12 302,9          11 849,3            12 787,1   
  Non-controlling interests                             825,8             963,2             1 028,4   
  TOTAL EQUITY                                       13 128,7          12 812,5            13 815,5   
  Non-current liabilities                             2 048,6           2 673,4             2 432,4   
  Deferred taxation liability                           409,4             361,7               398,8   
  Provision for post-retirement                     
  medical aid                                           590,4             642,3               580,9   
  Long-term borrowings                                1 048,8           1 669,4             1 452,7   
  Current liabilities                                 8 745,8           8 479,3             8 329,8   
  Trade and other payables                            4 145,7           4 292,5             3 987,6   
  Provisions                                            586,9             540,5               560,5   
  Taxation                                               47,2             120,0               131,5   
  Short-term borrowings                               3 966,0           3 526,3             3 650,2   
  Liabilities directly associated                   
  with assets classified as                                 -                 -               698,6   
  held-for-sale                                                                                       
  TOTAL EQUITY AND LIABILITIES                       23 923,1          23 965,2            25 276,3   
  Net debt                                            4 329,8           4 607,1             4 470,0   
  *The amounts have been restated due to the adoption of IAS 19R.                                                       




  Interim condensed consolidated statement of cash flows                                                                                 
                                                                                                                                         
                                                              Unaudited six        Unaudited six                       
                                                               months ended         months ended          Year ended   
                                                                   31 March             31 March        30 September   
  R’million                                                            2014                 2013                2013   
  Cash operating profit                                             2 149,8              2 164,9             4 311,3   
  Working capital changes                                           (427,4)              (339,9)             (337,2)   
  Cash generated from operations                                    1 722,4              1 825,0             3 974,1   
  Finance cost net of dividends received                             (91,3)               (80,8)             (108,6)   
  Taxation paid                                                     (487,7)              (550,3)             (986,2)   
  Cash available from operations                                    1 143,4              1 193,9             2 879,3   
  Dividends paid                                                    (907,8)              (910,8)           (1 426,1)   
  Net cash inflow from operating activities                           235,6                283,1             1 453,2   
  Purchase of property, plant and equipment                         (481,8)              (288,7)             (727,6)   
  Proceeds from disposal of property, plant, equipment       
  and intangible assets                                                33,7                 12,4                31,1   
  Disposals/(acquisitions) of businesses                              496,4            (1 868,4)           (2 586,4)   
  Proceeds on insurance claim                                          28,7                                            
  Other                                                                (2,2)               (0,5)                 1,1   
  Net cash inflow/(outflow) from investing activities                  74,8            (2 145,2)           (3 281,8)   
  Proceeds from issue of share capital                                 18,4                 18,6                17,8   
  Long- and short-term borrowings (repaid)/raised                   (530,3)                934,5               407,7   
  Acquisition of 2.31% non-controlling interest - DFM                (74,1)                    -                   -   
  Net cash (outflow)/inflow from financing activities               (586,0)                953,1               425,5   
  Net decrease in cash and cash equivalents                         (275,6)              (909,0)           (1 403,1)   
  Cash and cash equivalents transferred to assets            
  held-for-sale                                                           -                    -              (20,4)   
  Effect of exchange rate changes                                      21,3                 19,4                64,6   
  Cash and cash equivalents at the beginning 
  of the period                                                   (2 093,9)              (735,0)             (735,0)   
  Cash and cash equivalents at the end of the period              (2 348,2)            (1 624,6)           (2 093,9)   
  Cash resources                                                      685,0                588,6               632,9   
  Short-term borrowings regarded as cash and cash 
  equivalents                                                     (3 033,2)            (2 213,2)           (2 726,8)   
                                                                  (2 348,2)            (1 624,6)           (2 093,9)   
                                                                                                                       


  Other salient features                                                                    
                                                                                            
                                                                 Unaudited              Unaudited                                               
                                                                six months             six months         Year ended   
                                                                  31 March               31 March       30 September   
  R’million                                                           2014                   2013               2013   
  Capital commitments                                                442,8                1 077,9              780,3   
  - contracted                                                       197,2                  168,2              372,2   
  - approved                                                         245,6                  909,7              408,1  
 
  At 31 March 2014, the total capital commitments proposed but not yet approved amounted to R782,5 million. Capital 
  commitments will be funded from normal operating cash flows and the utilisation of existing borrowing facilities. 
                                                  
  Capital expenditure                                                481,8                  288,7              727,6   
  - replacement                                                      265,7                  197,5              540,3   
  - expansion                                                        216,1                   91,2              187,3   
                                                                                            
  Contingent liabilities                                                                    
  - guarantees and contingent liabilities                            131,1                   20,0               78,8   




  Interim condensed consolidated segmental information                                                                                                          
                                                                 Unaudited six                Unaudited six                       
                                                                  months ended                 months ended      Year ended       
                                                                      31 March                     31 March    30 September       
                                                                          2014    Change %             2013            2013       
  R’million                                                                                      Restated*#       Restated*       
  Turnover                                                                                                                        
  Domestic Operations                                                 11 204,9           8         10 331,9        20 250,7       
  Grains                                                               5 338,7           9          4 917,9        10 052,7       
    Milling and Baking                                                 3 862,3          12          3 463,4         7 243,3       
    Other Grains**                                                     1 476,4           2          1 454,5         2 809,4       
  Consumer Brands                                                      5 866,2           8          5 414,0        10 198,9       
    Groceries**                                                        2 039,5          18          1 726,9         3 238,6       
    Snacks & Treats                                                    1 024,2           8            952,8         1 924,0       
    Beverages                                                            618,3         (2)            632,6         1 020,3       
    Value Added Meat Products**                                          942,6           5            901,2         1 736,3       
    Out of Home                                                          206,7           2            203,5           402,7       
    Home, Personal care and Baby                                       1 034,9           4            997,0         1 877,0       
                                                                                                                                  
    Domestic intergroup sales                                                -           -                -           (0,9)      
  Exports and international                                            2 258,3          24          1 823,3         3 944,0       
   Exports                                                               897,6          23            727,1         1 521,7       
   International operations                                              744,0          25            595,0         1 239,6       
   Deciduous fruit                                                       679,9          21            560,9         1 324,5       
   Intergroup sales                                                     (63,2)         (6)           (59,7)         (141,8)       
  Nigeria                                                              1 463,7          14          1 288,0         2 808,8       
  Total turnover - Continuing operations                              14 926,9          11         13 443,2        27 003,5       
  Operating income before abnormal items                                                                                          
  Domestic operations                                                  1 560,3           6          1 477,6         2 892,0       
  Grains                                                                 832,1          10            756,9         1 689,7       
    Milling and Baking                                                   689,0          10            623,9         1 399,9       
    Other Grains**                                                       143,1           8            133,0           289,8       
  Consumer Brands                                                        739,3        (10)            824,1         1 345,9       
    Groceries**                                                          151,2        (33)            225,0           295,1       
    Snacks & Treats                                                      175,2          11            157,7           305,0       
    Beverages                                                             84,0         (5)             88,1           106,4       
    Value Added Meat Products**                                           62,3         (3)             64,2           119,7       
    Out of Home                                                           42,0           6             39,7            80,4       
    Home, Personal care and Baby                                         224,6        (10)            249,4           439,3       
  Other                                                                 (11,1)          89          (103,4)         (143,6)       
  Exports and international                                              335,0          26            265,6           574,8       
   Exports                                                               198,4          16            171,6           366,4       
   International operations                                              105,7          42             74,6           166,3       
   Deciduous fruit                                                        30,9          59             19,4            42,1       
  Nigeria                                                              (181,0)         (4)          (173,5)         (384,0)       
  TOTAL OPERATING INCOME BEFORE ABNORNAL ITEMS 
  - Continuing operations                                              1 714,3           9          1 569,7         3 082,8       
  *The amounts have been restated due to the adoption of IAS 19R.                                                                                 
  #The amounts have been restated as required by IFRS 5 with disclosure of a discontinued operation.                                                                          
  ** Segmental reporting has been revised during the current year, with Pasta and Canned meats being removed from the Groceries division 
     and realigned to Other Grains and Value Added Meat Products respectively. The comparative disclosures have been restated accordingly.



  Interim condensed consolidated statement of changes in equity                                                                                                                                                    
                                                                                                                                                                                                                   
                                                              Share                                               Shares held by   
                                                            capital               Non-                            subsidiary and   
                                                                and      distributable       Accumulated             empowerment    
  R’million                                                 premium           reserves           profits                entities    
  Balance at 1 October 2012 as                                                                                                     
  originally reported                                          94,5            1 408,9          12 142,5               (2 675,6)    
  Restatement                                                     -                  -           (129,5)                       -    
  Balance at 1 October 2012 - Restated                         94,5            1 408,9          12 013,0               (2 675,6)    
  Profit for the period                                           -                  -           1 319,1                       -    
  Other comprehensive income                                      -              216,0              15,5                       -    
                                                               94,5            1 624,9          13 347,6               (2 675,6)    
  Issue of share capital and premium                           18,6                  -                 -                       -    
  Recognition of minority interests in DFM                        -                  -                 -                       -    
  Transfers between reserves                                      -              137,3           (137,3)                       -    
  Share-based payment reserve                                     -                  -                 -                       -    
  Dividends on ordinary shares (net of                                                                                             
  dividend on treasury shares)                                    -                  -           (908,8)                       -    
  Sale of shares                                                  -                  -                 -                     1,1    
  Balance at 31 March 2013 - Restated                         113,1            1 762,2          12 301,5               (2 674,5)    
  Profit for the period                                           -                  -           1 257,6                       -    
  Other comprehensive income                                      -              150,6              15,5                       -    
                                                              113,1            1 912,8          13 574,6               (2 674,5)    
  Issue of share capital and premium                            4,2                  -                 -                       -    
  Recognition of minority interests in DFM                        -                  -                 -                       -    
  Transfers between reserves                                      -               77,0            (77,0)                       -    
  Share-based payment reserve                                     -                  -                 -                       -    
  Dividends on ordinary shares (net of                                                                                             
  dividend on treasury shares)                                    -                  -           (507,4)                       -    
  Sale of shares                                                  -                  -                 -                     0,5    
  Balance at 30 September 2013 - Restated                     117,3            1 989,8          12 990,2               (2 674,0)    
  Profit for the period                                           -                  -             631,9                       -    
  Other comprehensive income                                      -             (57,0)                 -                       -    
                                                              117,3            1 932,8          13 622,1               (2 674,0)    
  Issue of share capital and premium                           16,9                  -                 -                       -    
  Acquisition of non-controlling interest - DFM                   -             (49,7)                 -                       -    
  Disposal of Dangote Agrosacks Limited                           -                  -                 -                       -    
  Distribution to Oceana Empowerment Trust                                                                                         
  Beneficiaries                                                   -            (143,4)                 -                       -    
  Transfers between reserves                                      -              147,1           (147,1)                       -    
  Share-based payment reserve                                     -                  -                 -                       -    
  Dividends on ordinary shares (net of                                                                                             
  dividend on treasury shares)                                    -                  -           (907,8)                       -    
  Sale of shares                                                  -                  -                 -                     1,3    
  Balance at 31 March 2014                                    134,2            1 886,8          12 567,2               (2 672,7)    
                                                                                                                                        
                                                                                                                            
  Interim condensed consolidated statement of changes in equity continued                                                                                        
                                                                          Total attributable                                         
                                                        Share-based         to owners of the       Non-controlling                      
  R’million                                         payment reserve                   parent             interests       Total equity   
  Balance at 1 October 2012 as                                                                                          
  originally reported                                         332,5                 11 302,8                 392,7           11 695,5   
  Restatement                                                     -                  (129,5)                     -            (129,5)   
  Balance at 1 October 2012 - Restated                        332,5                 11 173,3                 392,7           11 566,0   
  Profit for the period                                           -                  1 319,1                 (4,9)            1 314,2   
  Other comprehensive income                                      -                    231,5                     -              231,5   
                                                              332,5                 12 723,9                 387,8           13 111,7   
  Issue of share capital and premium                              -                     18,6                     -               18,6   
  Recognition of minority interests in DFM                        -                        -                 577,4              577,4   
  Transfers between reserves                                      -                        -                     -                  -   
  Share-based payment reserve                                  14,5                     14,5                     -               14,5   
  Dividends on ordinary shares (net of                                                                                  
  dividend on treasury shares)                                    -                  (908,8)                 (2,0)            (910,8)   
  Sale of shares                                                  -                      1,1                     -                1,1   
  Balance at 31 March 2013 - Restated                         347,0                 11 849,3                 963,2           12 812,5   
  Profit for the period                                           -                  1 257,6                (16,7)            1 240,9   
  Other comprehensive income                                      -                    166,1                 126,0              292,1   
                                                              347,0                 13 273,0               1 072,5           14 345,5   
  Issue of share capital and premium                              -                      4,2                     -                4,2   
  Recognition of minority interests in DFM                        -                        -                (36,2)             (36,2)   
  Transfers between reserves                                      -                        -                     -                  -   
  Share-based payment reserve                                  16,8                     16,8                     -               16,8   
  Dividends on ordinary shares (net of                                                                                  
  dividend on treasury shares)                                    -                  (507,4)                 (7,9)            (515,3)   
  Sale of shares                                                  -                      0,5                     -                0,5   
  Balance at 30 September 2013 - Restated                     363,8                 12 787,1               1 028,4           13 815,5   
  Profit for the period                                           -                    631,9                (63,9)              568,0   
  Other comprehensive income                                      -                   (57,0)                  30,8             (26,2)   
                                                              363,8                 13 362,0                 995,3           14 357,3   
  Issue of share capital and premium                              -                     16,9                     -               16,9   
  Acquisition of non-controlling interest - DFM                   -                   (49,7)                (24,4)             (74,1)   
  Disposal of Dangote Agrosacks Limited                           -                        -               (145,1)            (145,1)   
  Distribution to Oceana Empowerment Trust                                                                              
  Beneficiaries                                                   -                  (143,4)                     -            (143,4)   
  Transfers between reserves                                      -                        -                     -                  -   
  Share-based payment reserve                                  23,6                     23,6                     -               23,6   
  Dividends on ordinary shares (net of                                                                                  
  dividend on treasury shares)                                    -                  (907,8)                     -            (907,8)   
  Sale of shares                                                  -                      1,3                     -                1,3   
  Balance at 31 March 2014                                    387,4                 12 302,9                 825,8           13 128,7   
                                                                                                                                            
                                                                                                                                         



  Notes                                                                                                                                            
                                                                                                                                                
  1.    Basis of preparation and changes to the Group’s accounting policies                                                                     
        The preparation of these results has been supervised by O Ighodaro, Chief Financial Officer of Tiger Brands Limited.                                                   
        The condensed group interim consolidated financial statements for the six months ended 31 March 2014 have been prepared 
        in accordance with IAS 34: Interim Financial Reporting as issued by the IASB, the South African Companies Act No 71 of 
        2008 and the Listings Requirements of the JSE Limited.                                                   
        
        The accounting policies adopted in the preparation of the interim consolidated financial statements are consistent with 
        those applied in preparation of the group’s annual consolidated financial statements for the year ended 30 September 2013, 
        except for the adoption of IAS 19R Employee Benefits, effective 1 October 2013, where the effect of these amendments are 
        explained in Note 7. In addition, IFRS 7 amendments, IFRS 10, IFRS 11 and IFRS 12 have been adopted with effect from 
        1 October 2013, however, they do not impact the annual consolidated financial statements or the interim condensed consolidated 
        financial statements of the group. IFRS 13 has been adopted with effect from 1 October 2013 in terms of which the additional 
        disclosures are reflected in Note 8.                                                   
                                                                                                  Unaudited         Unaudited                   
                                                                                                 six months        six months      Year ended   
                                                                                                   31 March          31 March    30 September   
        R’million                                                                                      2014              2013            2013   
  2.    Operating income before abnormal items                                                                                                  
        Depreciation (included in cost of sales and other operating expenses)                       (332,8)           (308,4)         (640,1)   
        Amortisation                                                                                 (23,6)            (23,0)          (47,4)   
        IFRS 2 (included in other operating expenses)                                                                                           
        - Equity settled                                                                             (23,5)            (19,9)          (36,2)   
        - Cash settled                                                                                 26,6            (73,9)          (98,0)   

  3.    Abnormal items                                                                                                                    
        Acquisition costs                                                                            (12,3)             (8,0)          (15,0)  
        Profit on disposal of property, plant and equipment and intangible assets                      14,8              11,1            11,1   
        Impairment of intangible assets                                                             (848,7)                -            (2,9)  
        Insurance claim income                                                                         28,7                 -               -   
        Other                                                                                        (18,2)               4,4             4,4   
        Total                                                                                       (835,7)               7,5           (2,4)  

  4.    Impairment                                                                                                                              
        Goodwill and intangible assets are tested for impairment annually (as at 30 September) and when circumstances indicate the carrying 
        value may be impaired. The Group’s impairment test for goodwill and intangible assets with indefinite lives is based on the value-in-use 
        calculations. The key assumptions used to determine the recoverable amount for the different cash generating units were disclosed in the 
        annual consolidated financial statements for the year ended 30 September 2013.                                                   
                                                                                                                                                
  5.    Reconciliation between profit for the period and headline earnings                                                                      
        Continuing operations                                                                                                            
        Profit for the period attributable to owners of the parent                                    602,0           1,288,8         2,516,0   
        Profit on disposal of property, plant, equipment and intangible assets                       (14,2)             (9,0)           (3,0)   
        Impairment of intangible assets                                                               801,7                 -             2,9   
        Insurance claim income                                                                       (20,7)                 -               -   
        Headline earnings adjustment - Associates                                                                                               
        -  Profit on disposal of property, plant, equipment and intangible assets                     (0,1)                 -           (0,9)   
                                                                                                    1 368,7           1 279,8         2 515,0   
        Tax effect of headline earnings adjustments                                                    16,9               2,0             2,3   
        Attributable to non-controlling interests                                                      20,9                 -           (2,9)   

        Discontinued operation                                                                                                                  
        Profit for the period attributable to owners of the parent                                     29,9              30,3            60,7   
        (Profit)/loss on remeasurement to fair value of transfer of net assets held-for-sale         (11,8)                 -            16,3   
        Loss on disposal of property, plant and equipment                                                 -                 -             9,7   
                                                                                                       18,1              30,3            86,7   
        Attributable to non-controlling interests                                                     (6,8)                 -          (15,3)   

  6.    Analysis of profit from discontinued operation                                                                                     
        Profit for the period from discontinued operation                                                                                  
        (attributable to owners of the Company)                                                                                     
        Turnover                                                                                      186,9             540,4         1,087,8   
        Expenses                                                                                    (156,1)           (423,8)         (890,9)   
        Operating income before abnormal items                                                         30,8             116,6           196,9   
        Profit/(loss) on remeasurement to fair value on transfer of net assets to held-for-sale        18,6                 -          (25,8)   
        Operating income after abnormal items                                                          49,4             116,6           171,1   
        Finance costs                                                                                 (5,0)            (32,4)          (47,6)   
        Profit before taxation                                                                         44,4              84,2           123,5   
        Taxation                                                                                      (3,4)            (26,4)            34,5   
        Profit for the period from discontinued operation                                              41,0              57,8           158,0   
        Attributable to non-controlling interests                                                    (11,1)            (27,5)          (97,3)   
        Attributable to owners of parent                                                               29,9              30,3            60,7   
        Cash flows from discontinued operation                                                                                                  
        Net cash (outflows)/inflows from operating activities                                        (23,9)             145,1           266,1   
        Net cash inflows/(outflows) from investing activities                                          97,0             130,3         (178,6)   
        Net cash outflows from financing activites                                                   (72,2)            (41,8)         (227,8)   
        Net cash inflows/(outflows)                                                                     0,9             233,6         (140,3)   
                                                                                                                                           
  7.    Employee benefits - Impact of transition to IAS 19R                                                                                
        The Group adopted the revised IAS 19 Employee benefits standard on 1 October 2013. This included changes to accounting principles in 
        respect of defined benefit plans and the post-retirement medical aid liability. The amendment eliminates the option of the corridor 
        approach and all the actuarial gains and losses are now recognised immediately in other comprehensive income. The full net liability/asset 
        is recorded in the statement of financial position while the expected interest income on assets is calculated using the same discount rate 
        as for calculating the present value of the obligation. The changes in fair value of the net obligation are recorded in other comprehensive 
        income where those were included in operating expenses previously. The amendments were applied retrospectively to both March 2013 and 
        September 2013. The impact of the revised standard on the Group is presented in the table below.                                            

                                                                              Unaudited                   
                                                                             six months      Year ended   
                                                                               31 March    30 September   
        R’million                                                                  2013            2013   
        Statement of Financial Position                                                                   
        Decrease in opening retained income                                       129,5           129,5   
        Increase in provision for post-retirement medical aid                   (162,6)         (148,3)  
        (Increase)/decrease in provision for defined benefit fund                 (0,5)             0,5   
        Increase in trade and other receivables                                    10,0            21,5   
        Increase in deferred tax asset                                             42,8            35,3   
                                                                                   19,2            38,5   
        Profit or loss                                                                                    
        Decrease in operating expenses                                            (5,1)          (10,4)  
        Increase in tax expense                                                     1,4             2,9   
                                                                                  (3,7)           (7,5)  
        Other Comprehensive Income (OCI)                                                                  
        Actuarial movements in OCI - PRMA                                         (8,5)          (17,0)   
        Actuarial movements in OCI - Defined benefit fund                        (13,1)          (26,1)   
        Tax on actuarial movements in OCI                                           6,1            12,1   
                                                                                 (15,5)          (31,0)   
        Net movement in total comprehensive income                               (19,2)          (38,5)   
        There was no material impact on the Group’s interim consolidated statement of cash flows or basic and diluted EPS or HEPS.                                                                              

  8.    Fair value of financial instruments                                                               
        The carrying amounts of all financial instruments approximate their fair value.The estimated net fair values as at the reporting date, 
        have been determined using available market information and appropriate valuation methodologies.                                         
        The table below analyses financial instruments carried at fair valuation method.                                                                                       
                                                       31 March 2014             30 September 2013                                    
        R’million                             Total    Level 1    Level 2    Total    Level 1    Level 2  
        Assets measured at fair value                                                                     
        Other investments                     364,6      354,4       10,2    420,3      411,6        8,7  
        Foreign exchange contracts             42,8          -       42,8     91,6          -       91,6  
        - hedged                                                                                          
        Liabilities measured at fair value                                                                
        Foreign exchange contracts            294,7          -      294,7    568,3          -      568,3  
        - hedged                                                                                                                 


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



Sponsor
JP Morgan Equities South Africa (Pty) Ltd
1 Fricker Road, Corner Hurlingham Road, Illovo, 2196, South Africa



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



Tiger Brands Limited
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
 
Website: www.tigerbrands.com

21 May 2014
Date: 21/05/2014 07:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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