Voluntary Trading Update for the 4 months to 31 January 2019
TIGER BRANDS LIMITED
“Tiger Brands” or “the Company”
(Incorporated in the Republic of South Africa)
(Registration number 1944/017881/06)
Share code: TBS
VOLUNTARY TRADING UPDATE FOR THE 4 MONTHS TO 31 JANUARY 2019
Group revenue from continuing operations was up 1% compared with the corresponding period last
year. The four months to January 2019 had 85 trading days versus 82 days last year. Excluding
Value Added Meat Products (VAMP), group revenue from continuing operations was 8% higher,
driven by overall price inflation of 2% and volume growth of 6%. Pleasing volume performances
were recorded in Wheat, Maize, Groceries, Snacks & Treats, Beverages, Baby and in particular,
Home & Personal Care. With the exception of Sorghum-based products, Pasta, Maize and Rice, all
categories recorded selling price inflation although price increases were not sufficient to fully
recover cost increases, resulting in gross margin compression.
The re-launch of the VAMP business has been well received by customers and consumers, however
challenges in managing the factory start-ups have resulted in the inability to fully meet demand in
this period, which has had a significant negative impact on VAMP’s operating performance. Good
progress is being made to resolve these challenges.
The trading environment is expected to remain challenging for the remainder of the financial year,
with ongoing pressure on consumer spending.
On 3 December 2018, the High Court of South Africa, Johannesburg Local Division granted an order
certifying the four classes of claimants in a Class Action lawsuit against Tiger Brands. To date, the
Company has not received the summons from the Class Action lawyers. The Company has product
liability insurance cover appropriate for a business of its scale. Coverage has been confirmed by the
insurers, subject to the terms and limits of the policy. The policy will accordingly respond to the
claim within its terms in the event that the Company is held liable.
As previously announced, the Tiger Brands Board has decided to pursue an unbundling of the
Company’s shareholding in Oceana Group Limited (Oceana). Further to this, shareholders are
referred to the SENS announcement of 24 January 2019 regarding the proposed sale of 8,000,000
Oceana shares to Brimstone Investment Corporation Limited. Subject to the fulfilment of all the
Conditions Precedent, this sale will take place prior to the unbundling date. The process of
unbundling the remaining 49,104,774 shares is on track and expected to be completed by the end of
As a consequence of the decision taken to unbundle the Company’s investment in Oceana, the
Company has ceased to equity account the earnings of Oceana with effect from 1 December 2018.
From this date, the investment has been accounted for as a held-for-sale asset on the balance sheet.
The information above has not been reviewed or reported on by the Company´s auditors.
20 February 2019
J.P. Morgan Equities South Africa Proprietary Limited
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