Wrap Text
TIGER BRANDS’ UNAUDITED GROUP RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2025 AND DIVIDEND DECLARATION
TIGER BRANDS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1944/017881/06)
Share code: TBS
ISIN: ZAE000071080
(Tiger Brands or the Company or Group)
TIGER BRANDS' UNAUDITED GROUP RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2025 AND DIVIDEND
DECLARATION
Tiger Brands delivers a strong first half underpinned by like-for-like volume growth, significant traction on
portfolio optimisation and declaration of a special dividend to shareholders
Salient Features
• Revenue increased by 2% to R18.5 billion (2024: R18.1 billion)
• Group operating income* increased by 30% from the prior year to R1.8 billion
• Milling and Baking operating profit increased by 37% to R326 million
• Grains operating profit surged by 673% to R231 million
• EPS:
- Total operations increased by 51% to 1 347 cents per share (2024: 892 cents per share)
- Continuing operations increased by 78% to 1 508 cents per share
• HEPS:
- Total operations increased by 18% to 951 cents per share (2024: 808 cents per share)
- Continuing operations increased by 34% to 1021 cents per share
• Interim dividend up 19% to 415 cents per share (2024: 350 cents per share)
• Total proceeds of R4.3 billion from sale of non-core operations
• Group net cash position improved by R8.6 billion to R5.9 billion
• R0.5 billion share buybacks completed (Total of R1.25 billion by 9th May 2025)
• Special dividend of 1 216 cents per share (R1.8 billion)
*Before impairments, fair value losses and non-operational items
Overview
Tiger Brands' strong results for the six months ended 31 March 2025 (H1 25) reflected management's ability to
drive growth in what continues to be a challenging consumer environment. Despite early signs of economic
recovery, which provided slight reprieve on the prioritised food basket inflation, consumers remain under
pressure and continue to seek value.
Tiger Brands has achieved growth in line with guidance, underpinned by a continued focus on driving value for
consumers, execution of key strategic priorities, and implementing continuous improvement initiatives of
logistics optimisation, value engineering and factory efficiencies.
Overall revenue improved by 1.9% at R18.5 billion compared to prior year, primarily driven by price inflation of
2.1%, and flat volume. On a like-for-like basis, excluding the impact of discontinued divisions or products,
underlying volumes grew by 2.6% for the first half, with price inflation at 1.4%. This underlying volume growth
was driven, through deliberate volume recovery initiatives.
Gross margin continued its upward trajectory, increasing to 29.6% from 28.5% in the prior year on a comparable
basis. This increase was driven by naked margin expansion due to price deflation in key commodity categories,
as well as factory efficiencies and value engineering savings on recipes and packaging.
The Group's operating income for H1 25 increased by 29.9% to R1.8 billion, driven by topline growth, logistics
optimisation savings delivering ahead of expectations, and other continuous improvement (CI) initiatives such
as value engineering. The disposal of Baby Wellbeing generated R455 million in non-operational profit after tax
for the group, whilst the after-tax profit from the disposal of a 24.4% interest in Empresas Carozzi S.A. (Carozzi)
in H1 25 amounted to R304 million. The total proceeds from these transactions was R4.4 billion as of 31 March
2025, with the remaining R0.6 billion received in April 2025.
Income from associates decreased by 15.0% to R337 million, primarily due to the conclusion of the Carozzi
disposal in February 2025, resulting in earnings from the associate for only five months of H1 25. Net financing
costs for the year were R21.5 million significantly lower than the R160.7 million in the prior year, due to reduced
debt levels in H1 25 as a result of the increased cash reserves.
The Group's effective tax rate, before fair value losses, non-operational items and income from associates
increased to 29.6% from 29.0% in the previous year, with the prior year benefiting from investment allowances
received on qualifying capital projects.
The Group's strong quality of earnings was reflected in the improved cash generation during the period.
Improved working capital management contributed a further cash inflow of R1.0 billion, compared to an outflow
of R1.4 billion in H1 24. This resulted in cash generated from operations increasing by R2.6 billion to R3.4 billion
(H1 24: R0.8 billion). The increased cash generated from operations, combined with the proceeds from disposal
of non-core operations, resulted in the Group net cash position increasing by R8.6 billion to R5.9 billion (H1 24:
net debt R2.7 billion). The Group achieved a commendable cash conversation ratio of 66% for H1 25, reflecting
a meaningful improvement on the 34% generated in the prior period.
Earnings Per Share (EPS) from total operations increased by 50.9% to 1 347 cents (2024: 892 cents). Headline
EPS (HEPS) from total operations increased by 17.6% to 951 cents per share (2024: 808 cents). The variation
between HEPS and EPS mainly relates to profit on the disposal of the non-core Baby Wellbeing division and of
associate Carozzi.
On a continuing operations basis, EPS increased by 78.0% to 1 508 cents (H1 24: 847 cents), and HEPS increased
by 33.8% to 1 021 cents (H1 24: 763 cents). This increase in earnings was impacted by the disposals during the
period. It is important to note that Baby Wellbeing and Carozzi are included in continuing operations.
Strategic Update
Portfolio Optimisation
The first half saw significant progress being made on portfolio optimisation, continuing the momentum of non-
core disposals previously communicated. During H1 25, the disposal of the Baby Wellbeing division was
completed, following competition commission approval. In addition, the disposal of Tiger Brands' equity interest
in Carozzi in Chile was finalised.
In shaping our portfolio of the future, we have carefully considered the strategic and financial fit, competitive
positioning, the evolving consumer, as well as the macroeconomic landscape. Informed by this in-depth analysis,
we are now confirming the categories where we believe Tiger Brands has a sustainable competitive edge and
Right-To-Win (RTW).
Following the Stock Exchange News Service (SENS) announcement of 16 May 2025, wherein the Company
advised its shareholders of the disposal of its Langeberg & Ashton Foods (LAF) business, management is also
pleased to announce the progress made on the sale of its Maize Milling operations. The disposal of LAF and sale
of the Maize Milling operations are subject to suspensive conditions that are customary for transactions of this
nature. Both LAF and Maize Milling have been accounted for as discontinued operations for H1 25.
• Maize Milling
- With the evolution of the local maize market competitiveness and increasing establishment of regional
millers, the Maize category was identified as no longer being core to the Company's future. The Maize
business is being sold together with the wheat mill to facilitate a simpler and expedited transaction, as
they are both located at the same manufacturing site.
- Accordingly, Tiger Brands, through its wholly owned subsidiary, Tiger Consumer Brands, has entered
into a sale of business agreement for the disposal of the Randfontein Operations (Wheat Mill and Maize
business).
- Disposing of the Wheat Mill will aid in optimising the Tiger Brands wheat milling footprint and deliver
an improved conversion cost.
Clarification on Core and Non-Core Operations
When Tiger Brands embarked on a refreshed strategy which included federating the operating model, we
announced Business Units (BUs) with a consolidation of categories that are strategically and operationally
aligned. The operating model has played a pivotal role in enabling swift execution of our refreshed consumer-
centric strategy and has fuelled the performance traction to date.
In addition to the newly defined BUs, we have now identified various categories and divisions where we believe
the Company has a Right-To-Win (Core), and those which coming out of the portfolio optimisation assessment,
are not considered core to the future competitiveness of Tiger Brands (Non-Core).
These changes are aligned with previous guidance on the optimisation of the operating model as well as
communicated category and brand disposals.
Categories and divisions considered non-core are King Foods, the chocolate business within Snacks Treats and
Beverages (STB), and the Chococam subsidiary in Cameroon.
Salient features for continuing Core operations H1 25:
• Core revenue increased by 2.3% on the comparable prior year figure of R16.3 billion
• Core gross profit margin (%) increased by 1.4% on the comparable prior year of 28.8%
• Core operating income increased by 32,7% to R1.7 billion on the comparable prior year figure of R1.3 billion
• Core operating margin (%) at 9.9% increased from 7.7% in the prior year
• HEPS from core operations increased by 54% to 789 cents versus the prior year comparable figure of 511
cents
There are various options being explored for the remaining non-core operations, which will continue to be fully
operational until final decisions are concluded. Management remains committed to driving growth and margin
expansion within these operations until such time that a feasible exit plan has been established.
Capital Allocation
As previously communicated, we recognise the pivotal role of disciplined capital allocation in driving shareholder
value. Due to the significant progress made on portfolio optimisation, and in line with our capital allocation
framework, key decisions were made in H1 25 regarding excess cash to be returned to shareholders. This follows
management's assurance that all internal capital requirements were fully funded, and maintaining a stable
ordinary dividend cover at 1.75x on HEPS.
To that end, management embarked on a share buyback program during H1 25, having received the necessary
shareholder authority at the AGM held on 20 February 2025. As of 31 March 2025, R0.5 billion had been
deployed resulting in the repurchase of 1.8 million shares. The share buy-back program continued beyond the
interim period, and as of 9th May 2025 a total of 4.5 million shares had been repurchased at a cumulative value
of R1.2 billion.
In addition, we are also pleased to declare a special dividend to shareholders of 1 216 cents per share, which
will return a further R1.8 billion to shareholders, subject to approval by the South African Reserve Bank. This is
reflective of our deliberate intent to finding the optimal balance between driving shareholder value and
fostering sustainable growth.
Segmental Operating Performance
There was notable volume recovery in H1 25 with like-for-like volume growth at 2.6%, and price inflation
managed down to 1.4%, reflecting our commitment to drive affordability, access, and value to consumers across
our portfolio. Although the Tiger Brands' defined basket inflation for 6mm was ahead of the market, over the
3mm our inflation lagged the market as Tiger Brands continues driving its affordability and price point
management strategy.
From a channel perspective, H1 25 growth was driven by retail, where Tiger Brands grew ahead of the market,
slightly offset by declines experienced in wholesale. Short-term share recovery within wholesale began to show
promise towards the end of the reporting period and is expected to continue into the second half of 2025 (H2
25).
Milling and Baking
Revenue for Milling and Baking increased by 0.4% to R4.2 billion, driven by price inflation enabled by discount
management and the exit of non-profitable routes, despite a volume decline of 2.4%. Tiger Brands continues to
strategically manage the depth of discounting and investment behind promotional activities to protect margins.
Operating income increased by 37.3% to R326 million, with margins improving to 7.8% compared to 5.7% in the
prior year. This improvement was achieved through operational labour efficiencies, factory optimisation,
reduction of returns and damages, as well as route-to-market efficiencies in both Milling and Baking divisions.
Grains
The Grains topline performance was flat at R3.6 billion, driven by deflation in key commodities, resulting in
muted overall price inflation of 1.3% and volume decline of 1.4%. On a like-for-like basis, adjusting for the impact
of discontinued SKU's, underlying volumes for H1 25 grew by 0.6% driven by Rice and Pasta. Short-term volume
growth showed good recovery and outpaced the market.
Operating profit surged by 673.5% to R231 million, with margins improving by 5.6% to 6.4%. This was achieved
through strategic price and volume management, as well as continuous improvement initiatives including
logistics optimisation and factory efficiencies. First half of 2024 (H1 24) comparative period also faced raw
material supply challenges, as well as the inflationary impact of the El-Nino weather pattern.
Driving affordability remains a key focus to restore Grains competitiveness.
Culinary
Culinary revenue increased by 5.0% to R5.2 billion, with reported volume growth of 5.8% and price deflation of
0.5%. On a like-for-like basis, underlying volumes increased by 5.8% and price was marginally up by 0.1%. This
performance was driven by targeted market share recovery promotional strategies in the local market.
Operating income improvement of 23.6% at R443 million was driven by factory efficiencies and continuous
improvement of recipe engineering and packaging, waste reduction and logistics optimisation. Additionally,
operating margin improved by 1.3% driven by product tiering initiatives and favourable mix. These initiatives
were offset by the impact of supply challenges on vinegar experienced during the first half, impacting production
and service levels for Crosse & Blackwell and All Gold.
Snacks, Treats and Beverages (STB)
The STB business recorded strong revenue growth of 6.1% for H1 25 to R3.2 billion, with reported price inflation
of 7.4% offset by volume declines of 1.3%, with notable double-digit growth in Oros and Jungle health bars. On
a like-for-like basis, adjusting for the impact of discontinued SKU's, underlying volume growth was 0.6%.
Operating income improvement of 11.7% to R435 million and operating margin improvement to 13.5% were
driven by solid revenue growth, favourable channel mix with strong performance from food service and exports,
as well as logistics optimisation and value engineering recipe initiatives in Snacks & Treats.
Home and Personal Care
HPC experienced a challenging first half, with revenue declining by 4.8% to R1.4 billion and operating income
declining by 6.7% to R292 million. Although reported volume declined by 4.6%, after adjusting for the impact of
discontinued SKU's, the underlying volume growth was flat for the period.
Continued competitor intensity on pricing and innovation in Personal Care resulted in significant volume declines
on Ingrams. Additionally, aerosol can supply challenges during peak season impacted both the topline and
profitability of Doom. Despite these challenges, the export channel contributed positively to the BU and
continues to be a key driver for growth amidst a highly competitive local market.
The focus for H2 25 is on continuing to build on the export momentum in Personal Care as well as executing on
local product activation initiatives, innovation, and optimal pricing to win back share. In Home Care, our focus
for the second half will be on addressing supply challenges to meet demand across all channels.
International
Revenue decline for Chococam was purely due to ZAR appreciation, as local currency performance saw 1.1%
increase in volumes, and 2.6% revenue growth versus prior year driven by Gums, Candies and Beverages.
Exceptional overhead cost management resulted in local currency operating income improvement of 1.1%,
despite rising material cost pressures on cocoa. With the ZAR appreciation the operating income on translation
resulted in a 3.7% decline.
The focus for the second half of the year as Cameroon prepares for presidential elections, is continued execution
of cost management initiatives and driving value innovation for consumers.
Cash Flow and Capital Expenditure
Cash operating profit at R2.4 billion improved by 12.1% relative to the prior year of R2.1 billion. Working capital
change on last year of R2.4 billion exceeded expectations driven by a reduction in inventory on key Grains
commodities, timing of creditor payments and receipt of inventory, as well as a continued focus on collections.
This led to an increase in cash generated from operations to R3.4 billion. We expect the working capital
improvement to the extent experienced in H1 25 to normalise in H2 25, back in line with guidance. The improved
management of working capital as well as the proceeds from portfolio optimisation sales, resulted in the group
ending the period in a net cash position of R5.9 billion (2024: net debt R2.7billion).
Capital expenditure for the period amounted to R0.5 billion, with numerous approvals for key projects received
from the board of directors of Tiger Brands (Board) in line with our long-term strategic plans and project
timelines.
Listeriosis Class Action Update
As per the update in the SENS issued on 12 May 2025, the Company's lead reinsurer, QBE Insurance Group
Limited, having primary conduct of the defence of the class action against Tiger Brands, has with the Company's
support and agreement, authorised the insurers' attorneys to make settlement offers to specific named persons
who suffered damage as a result of listeriosis caused by genotype L1-SL6-ST6-CT4148 of Listeria monocytogenes
(or ST6). The settlement offer which was made to the plaintiffs' attorneys on 25 April 2025, represents a
significant step towards resolution of the listeriosis litigation.
As previously communicated, the next steps to give effect to the settlement offer is for the offer to be conveyed
by the plaintiffs' attorneys to eligible claimants who qualify and then for the damages of those claimants who
accept to be quantified. Engagements between the legal representatives of the parties are continuing to ensure
timely implementation of the offer and settlement of proven or agreed compensatory damages as soon as
possible. Tiger Brands and its insurers remain committed to achieving a just resolution of the listeriosis class
action as soon as possible.
As previously stated, Tiger Brands has adequate product liability insurance cover for a group of its size.
Outlook
Management remains confident in our ability to deliver performance in line with guidance, through the
execution of the strategic priorities, despite what will continue to be a challenging macroeconomic environment
and a constrained consumer.
In line with our strategic priorities, H2 25 will be focused on the following:
• Shaping our portfolio: We anticipate conclusion of the Randfontein Mill and Langeberg & Ashton disposal
processes.
• Superior channel presence: Continue to drive Bakeries General Trade growth and food service innovation
within Culinary, Grains and Beverages.
• Cost leadership: Continue momentum of logistics optimisation, driving strategic procurement within
commodity categories, as well as full delivery of continuous improvement initiatives of value engineering
and factory efficiencies.
• Deliberate growth platforms: Driving affordability in Grains with optimal price / volume management, and
affordability in Culinary with product innovation on recipe remain key thrusts for continued performance
and consumer relevance of our loved brands. Personal Care channel mix optimisation and innovation
remains an imperative to regaining share and volumes.
• Rejuvenating our brands: Leveraging our focus brands to maximize return on investment with deliberate
and effective marketing.
Certain information presented in this short-form announcement constitutes pro forma financial information.
This pro forma financial information has not been audited or reviewed or otherwise reported on by Tiger Brands'
external auditors. The responsibility for preparing and presenting the pro forma financial information is that of
the directors of Tiger Brands. This is presented for illustrative purposes only. Because of its nature, the pro forma
financial information may not fairly present Tiger Brands' financial position, changes in equity, and results of
operations or cash flows.
Any forward-looking financial information disclosed in this short-form announcement, including performance
guidance, has not been reviewed or audited or otherwise reported on by the Company's external auditors.
By order of the board
GJ Fraser-Moleketi TN Kruger
Chairman Chief Executive Officer
Bryanston
27 May 2025
Date of release: 28 May 2025
Interim and Special Dividend declaration
Declaration of interim dividend
The company declared an interim ordinary dividend of 415 cents per share for the six months ended 31 March
2025, in line with the company's dividend policy of 1.75x cover based on HEPS.
Declaration of special dividend
The company has continued to significantly improve the management of working capital, which together with
proceeds received from portfolio optimisation disposals has resulted in an improved net cash position. With all
internal funding requirements met, the conclusion of the share repurchase program, and the maintenance of
the 1.75x dividend policy, a decision has been made to return excess cash to shareholders, in line with the capital
allocation framework previously communicated.
Accordingly, the company declared a special dividend of 1 216.00000 cents per share for the six months ended
31 March 2025. An application has been made to the exchange control division of the South African Reserve
Bank for approval of the special dividend. Once received, the finalisation information pertaining to the payment
of the special dividend will be communicated to shareholders.
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 ordinary and special dividends have been declared out of income reserves
• The local dividends tax rate is 20% (twenty percent)
• The gross interim dividend amount of 415.00000 cents per ordinary share, and special dividend of
1 216.00000 cents per share will be paid to shareholders who are exempt from the dividends tax
• The net interim dividend of 332.00000 cents per ordinary shares and net special dividend of 972.80000
cents will be paid to shareholders who are liable for Dividends Tax
• Tiger Brands has 178,528,213 ordinary shares in issue (which includes 10,814,725 treasury shares)
• 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 ordinary dividend and special dividend:
Declaration date Wednesday, 28 May 2025
Special Dividend Finalisation date Tuesday, 24 June 2025
Last day to trade cum the ordinary dividend Tuesday, 1 July 2025
Shares commence trading ex the ordinary dividend Wednesday, 2 July 2025
Record date to determine those shareholders entitled to the ordinary Friday, 4 July 2025
and special dividend
Payment date in respect of the ordinary and special dividend Monday, 7 July 2025
Share certificates may not be dematerialised or re-materialised between Wednesday, 2 July 2025 and Friday, 4
July 2025, both days inclusive.
By order of the board
J. K. Monaisa
Company Secretary
Bryanston
27 May 2025
Date of release: 28 May 2025
Short-form statement
This short-form announcement is the responsibility of the Directors of Tiger Brands and has not been reviewed
or audited by the group's auditors. The information disclosed is only a summary of the full Tiger Brands 2025
unaudited results for the six months ended 31 March 2025 (Results) and does not contain full or complete
details.
Any investment decisions should be based on the consideration of the full Results. The Results were released
on SENS on 28 May 2025 and are available on the Company's website www.tigerbrands.com and via the JSE
cloudlink: https://senspdf.jse.co.za/documents/2025/jse/isse/tiih/TigerHY25.pdf.
Registered office: 3010 Winnie Mandela Drive, Bryanston, 2021
Independent non-executive directors: GJ Fraser-Moleketi (Chairman), FNJ Braeken, TE Mashilwane, M Sello, LA
Swartz, OM Weber, DG Wilson
Non-executive directors: S Sithole
Executive directors: TN Kruger (Chief Executive Officer), TG Govender (Chief Financial Officer)
Company secretary: JK Monaisa
JSE Sponsor
J.P. Morgan Equities South Africa Proprietary Limited
Date: 28-05-2025 07:05:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
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