TIGER BRANDS LIMITED - Tiger Brands unaudited group results and dividend declaration for the six months ended 31 March 2021

Tiger Brands unaudited group results and dividend declaration for the six months ended 31 March 2021

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


TIGER BRANDS UNAUDITED GROUP RESULTS AND DIVIDEND
DECLARATION FOR THE SIX MONTHS ENDED 31 MARCH 2021


Tiger Brands delivers an improved performance for the six months ended 31
March 2021

Salient Features*
   - Revenue increased by 8% to R16,4 billion
   - Group operating income** increased by 16% to R1,6 billion
   - Group operating margin** increased to 9.6%
   - EPS increased to 755 cents per share
   - HEPS increased 21% to 741 cents per share
   - Interim Dividend of 320 cents per share
*From continuing operations
**Before impairments, abnormal items and IFRS 2 charges

Overview

Tiger Brands delivered an improved financial performance for the six months ended
31 March 2021. The performance was supported by strong revenue growth in the
first quarter of the financial year, whilst cost saving and efficiency initiatives gained
traction across all segments of the portfolio, leading to positive operating leverage for
the full six-month period.

As previously reported, Value-Added Meat Products (VAMP) has been treated as a
discontinued operation, with the comparative information restated accordingly. In
addition, there was a restatement to the group 31 March 2020 and 30 September
2020 statements of financial position by offsetting portion of its rebate liability against
trade and other receivables to better reflect the requirements of IFRS 15.

Total revenue from continuing operations increased by 8% to R16,4 billion,
underpinned by price inflation of 9% and offset slightly by an overall volume decline
of 1%. Meaningful volume growth in both Exports and International was offset by
volume declines in the Domestic Business, primarily attributable to Out of Home,
with some volume pressure also within Grains, other than the Oat-based breakfast
business (Jungle). The volume declines were partially offset by strong performances
in Baby and Home Care, and a solid recovery in Snacks & Treats.

The Group was unable to fully recover the high level of agricultural commodity cost
push, placing naked margins under pressure. However, this was mostly offset by a

                                                                                          
steady improvement in manufacturing efficiencies, resulting in the overall gross
margin for the Group remaining relatively flat at 30,6%. Group operating income
(before IFRS 2 charges) increased by 16% to R1,6 billion, with the operating margin
improving to 9,6% compared to 8,9% in the corresponding period last year.

Earnings per share (EPS) from continuing operations increased by 126% to 755
cents (2020: 333 cents) whilst headline earnings per share (HEPS) from continuing
operations increased by 21% to 741 cents (2020: 613 cents).
EPS from total operations increased by 299% to 837 cents (2020: 210 cents) and
HEPS from total operations increased by 52% to 741 cents (2020: 489 cents). The
higher increase in HEPS from total operations for the six months ended 31 March
2021, relative to the increase of 21% from continuing operations, was primarily due
to the losses recorded by VAMP in the prior period.

The relatively higher rates of increase in EPS from both total operations and
continuing operations, compared to the equivalent increases in HEPS, are primarily
due to the significant impairment charges of R557 million, recorded in the same
period last year, all of which related to continuing operations.

Declaration of interim ordinary dividend
The Board has approved and declared an interim ordinary dividend for the six
months ended 31 March 2021.

No interim dividend was declared in respect of the 2020 half-year results. Given the
uncertainty at the time related to the Covid-19 lockdown measures, a decision was
taken by the Board to defer the matter for reconsideration to the end of the financial
year.

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 dividend has been declared out of income reserves
› The local Dividends Tax rate is 20% (twenty percent) effective 22 February 2017
› The gross total dividend amount of 320.00000 cents per ordinary share will be paid
to shareholders who are exempt from the Dividends Tax
› The net total dividend amount of 256.00000 cents per ordinary share will be paid to
shareholders who are liable for the Dividends Tax
› Tiger Brands has 189 818 926 ordinary shares in issue (which includes 10 326 758
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:
 Declaration date                                            Thursday, 20 May 2021

 Last day to trade cum the interim ordinary dividend         Tuesday, 29 June 2021
 Shares commence trading ex the interim ordinary           Wednesday, 30 June 2021
 dividend



                                                                                         
 Record date to determine those shareholders                     Friday, 2 July 2021
 entitled to the interim ordinary dividend
 Payment date in respect of the interim ordinary                 Monday, 5 July 2021
 dividend


Share certificates may not be dematerialised or rematerialised between Wednesday,
30 June 2021 and Friday, 2 July 2021, both days inclusive.




Outlook
In the second quarter, there was a decline in overall consumer demand across many
of our categories. This reflects the dire impact of Covid-19 on the economy and on
livelihoods. In an environment such as this, where growth comes from share gains,
there is likely to be inevitable pressure on pricing and margins.

To this end, the ongoing cost saving initiatives and successes achieved to date in
extracting further supply chain efficiencies will be intensified, whilst initiatives to grow
the top line will be prioritised.

Whilst we are confident that operating income will show improvement in the second
six months, relative to both the second half of 2020 as well as the second half of
2019, the environment remains one of the most challenging experienced in recent
years.

Any forward-looking information has not been reviewed or reported on by the
Group’s auditors.

By order of the Board
GJ Fraser-Moleketi                                                NP Doyle
Chairman                                                          Chief Executive Officer

Bryanston

19 May 2021

Date of release: 20 May 2021

J.P. Morgan Equities South Africa Proprietary Limited




                                                                                            
This short?form announcement is the responsibility of the Directors of the Company
and has not been reviewed or audited by the Group's auditors. The information
disclosed is only a summary of the full announcement and does not contain full or
complete details.
Any investment decisions should be based on the consideration of the Tiger Brands
interim results announcement ("Results"). The results were released on SENS on 20
May 2021 and are available on the Company's website www.tigerbrands.com and
 https://senspdf.jse.co.za/documents/2021/jse/isse/TIIH/TigerHY21.pdf
Copies of the Results are available for inspection at the Company's registered office,
the offices of our sponsor or may be requested from the Company's investor
relations department during normal business hours and are available at no charge.
Registered office: 3010 William Nicol Drive, Bryanston, 2021
Independent non-executive directors: GJ Fraser-Moleketi (Chairman). MO Ajukwu,
MJ Bowman, I Burton, CH Fernandez, GA Klintworth, M Makanjee, TE Mashilwane,
M Sello, OM Weber, DG Wilson
Executive directors: NP Doyle (Chief Executive Officer), DS Sita (Chief Financial
Officer)
Secretary: JK Monaisa




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Date: 20-05-2021 07:30:00
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