TIGER BRANDS LIMITED - Trading Statement for the year ended 30 September 2021

Trading Statement for the year ended 30 September 2021

TIGER BRANDS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1944/017881/06)
Share code: TBS
ISIN: ZAE000071080
“Tiger Brands” or “Company”

TRADING STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2021

In accordance with paragraph 3.4(b) of the Listings Requirements of the JSE Limited, Tiger Brands is
required to publish a trading statement as soon as it is satisfied that a reasonable degree of certainty
exists that its financial results for the year ended 30 September 2021 will differ by more that 20
percent when compared to the previous financial year (FY2020).

Shareholders are accordingly advised that:

    -   Headline earnings per share (HEPS) from continuing operations for the year ended 30
        September 2021 is expected to be between 5% and 15% (or between 60 cents and 179
        cents) lower than the 1 196 cents reported in FY2020.
    -   Earnings per share (EPS) from continuing operations for the year ended 30 September 2021
        is expected to be between 15% and 25% (or between 133 cents and 221 cents) higher than
        the 886 cents reported in FY2020.
    -   HEPS from total operations for the year ended 30 September 2021 is expected to be
        between 15% and 25% (or between 141 cents and 235 cents) higher than the 940 cents
        reported in FY2020.
    -   EPS from total operations for the year ended 30 September 2021 is expected to be between
        80% and 90% (or between 490 cents and 551 cents) higher than the 612 cents reported in
        FY2020.

The relatively higher rates of increase in EPS from total and continuing operations, compared to the
year-on-year percentage changes in HEPS, are primarily due to the significant impairment charges of
R600 million recorded in FY2020, all of which related to continuing operations. These impairment
charges were excluded from the calculation of HEPS. The increase in HEPS from total operations was
primarily due to the losses recorded in Value Added Meat Products (VAMP) in FY2020 compared to a
small profit in the year ended 30 September 2021. VAMP has been treated as a discontinued
operation.

As previously communicated, earnings for the year ended 30 September 2021 were impacted by
once-off costs related to the civil unrest that took place in July 2021 as well as the canned vegetable
recall. The write-off of assets plus stock losses related to the civil unrest amounted to approximately
R100 million (pre-tax), whilst the adverse financial impact of the recall totalled R647 million (pre-
tax). The after-tax impact of the stock losses, together with the impact of the recall, is estimated to
be in the region of 318 cents per share.

These once-off costs more than offset the group’s improved underlying performance, despite a
particularly challenging second half for the Milling and Baking operations as well as Exports.

The write-off of stock related to the civil unrest as well as the recall will be accounted for through
cost of sales. Refunds related to the recall will be accounted for as a reduction in revenue, whilst
other recall related costs will be accounted for through the relevant expense functions on the
income statement.

The financial information above has not been reviewed or reported on by the Company´s auditors.

Tiger Brands’ results for the year ended 30 September 2021 are expected to be released on SENS on
or about 19 November 2021.

Bryanston
26 October 2021

Sponsor
J.P. Morgan Equities South Africa Proprietary Limited




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Date: 26-10-2021 08:55:00
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