Tiger Brands interim results March 2019
Revenue for the interim period decreased to R15.402 billion (2018: R15.685 billion), gross profit lowered to R4.822 billion (2018: R5.217 billion), profit for the period attributable to owners of the parent rose to R1.431 billion (2018: R1.407 billion), while headline earnings per ordinary share continuing operations decreased to 761.9 cents per share (2018: 868.3 cents per share).
Ordinary and special dividend
The company has declared an ordinary dividend of 321 cents per share for the six-month period ended 31 March 2019, which represents a 15% decrease on the interim dividend of 378 cents per share declared last year. The lower ordinary dividend takes into account the recent change in the group's dividend policy to a cover of 1,75 times, and is calculated off the reduced headline earnings base in this period.
In addition, the company has declared a special dividend of 306 cents per share as a result of the once-off proceeds received from the Brimstone sale. The payment of the special dividend is subject to South African Reserve Bank approval.
We continue to focus on positioning the business for the future and are confident that our strategies remain compelling. Embedding the operating model remains a priority as is driving the cultural transformation that will result in a more agile and flexible organisation. In tandem with the above, we will review processes, structures and overhead costs to identify opportunities that will improve operational efficiencies and reduce our cost base, particularly as selling price inflation across the portfolio is expected to remain low against a backdrop of constrained consumer spending.
Shareholders are referred to the SENS announcement issued by the company on 17 April 2019 with regards to the serving of the Class Action summons.
As previously confirmed, the company has product liability insurance cover appropriate for a group of its scale. Coverage is subject to the terms and limits of the policy. Our insurers have advised that the product liability policy does not include cover for exemplary or punitive damages, should such an award be made by the court, and in addition, should an award be made for Constitutional damages, the product liability policy will not cover that portion of the award which relates to exemplary or punitive damages which are not compensatory in nature. The company reserves its rights in this regard.
On 2 May 2019, the company filed the required notice with the Registrar of the High Court, Gauteng Local Division, Johannesburg, of its intention to defend the Class Action. When appropriate, it will issue further communication as material milestones in the legal process are reached.