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IOL News
3 days ago
- Business
- IOL News
Tiger Brands reports 78% earnings jump while addressing listeriosis claims
Tiger Brands, a JSE-listed company, has reported a remarkable 78% increase in earnings per share for the first half of the year, driven by the sale of non-core units. As the company navigates the complexities of settling claims from the 2017 listeriosis outbreak, it remains committed to achieving a resolution 'as soon as possible' JSE-listed Tiger Brands, which recorded a 78% jump in earnings per share in its first half to the end of March on the back of sales of non-core units, reiterated its resolve to settle claims relating to 2017 massive listeriosis outbreak 'as soon as possible'. Tiger Brands has not disclosed the full value of the settlement, which it said it had presented as a total amount at the end of April, although it has stated it has enough insurance to cover the claims. In a recent statement, it also refused to accept liability. 'The offer is subject to certain conditions and has been made without admission of liability and in full and final settlement of the claims of the claimants,' it said. What has been called the largest listeria outbreak in South Africa's history happened in 2017. It was traced to Tiger Brands' Enterprise Foods facility in Polokwane and resulted in 218 deaths and close on 1,000 infections. The settlement process now moves quantifying individual damages for eligible claimants as well as attorneys taking those offers to the plaintiffs. 'Tiger Brands and its insurers remain committed to achieving a just resolution of the listeriosis class action as soon as possible,' it said. Africa's largest food producer posted a 17.6% jump in headline earnings per share, a figure that strips out profit from sales of units, to 951c for the interim period, despite ongoing inflationary pressure and a consumer base still watching every rand. Tiger Brands' price inflation of 2.1% helped offset the flat volumes, leading to revenue improving 1.9% to R18.5 billion. 'Despite early signs of economic recovery offering some much-needed relief, consumers remain under pressure and continue to seek value in their food basket,' said CEO Tjaart Kruger. The company is sticking to its cost-cutting plans, optimising logistics, engineering value into recipes and packaging, and squeezing more efficiency out of its factories, to protect margins and keep products affordable. Tiger Brands continues to focus on trimming non-core assets, with the sale of the Baby Wellbeing division and a 24.4% stake in Chile-based company, Empresas Carozzi bringing in R4.4bn during the period and another R600 million received in April. Having sold those entities, as well as its Langeberg & Ashton Foods business, it said it has entered into a deal to sell its Wheat Mill and Maize unit in Randfontein. Tiger Brands did not provide more details, although it noted that selling non-core entities to ensure it has a 'competitive edge' and can win market share. Shareholders are set to benefit from a special dividend of 1 216 cents per share, returning R1.8bn to investors, pending approval from, the South African Reserve Bank. Management says this strikes a balance between rewarding investors and maintaining the flexibility needed for sustainable growth. '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,' it said. IOL
The Herald
13-05-2025
- Business
- The Herald
Tiger Brands settlement in listeriosis class action offered 'without admission of liability'
Tiger Brands, South Africa's biggest food producer, on Monday offered to compensate listeriosis victims, marking a major step towards resolving the class action after a 2017 outbreak that killed about 200 people and sickened more than 1,000. The offer was made by the attorneys representing Tiger Brands lead insurer QBE Insurance on April 25, which made settlement offers to specific classes of claimants who suffered from listeriosis, the company said. The proposal provides for full compensation to claimants for proven damages, subject to a settlement mechanism that still needs to be finalised — including how individual damages will be assessed. To protect the privacy of the individuals participating in the settlement offer, no details of the offer and/or payment will be made public, the company said. The offer has been made 'without admission of liability', Tiger Brands said. In January 2017 an outbreak of listeriosis, a food-borne disease, occurred in South Africa that was traced to a factory run by a Tiger Brands subsidiary at the time, Enterprise Foods, which makes processed sausages, bacon and deli meat.
Reuters
12-05-2025
- Business
- Reuters
South Africa's Tiger Brands offers settlement to plaintiffs in listeriosis class action
JOHANNESBURG, May 12 (Reuters) - Food company Tiger Brands (TBSJ.J), opens new tab on Monday offered to compensate listeriosis victims, marking a major step toward resolving class action after a 2017 outbreak that killed about 200 people and sickened more than 1,000. The offer was made by the attorneys representing Tiger Brands lead insurer, QBE Insurance Group Limited ( opens new tab, on 25 April 2025, which made settlement offers to specific classes of claimants who suffered from listeriosis, the company said in a statement. The current proposal provides for full compensation to claimants for all proven damages, subject to a settlement mechanism that still needs to be finalised - including how individual damages will be assessed. In order to protect the privacy of the individuals participating in the settlement offer no details of the offer and/or payment will be made public. In January of 2017 an outbreak of listeriosis, a food-borne disease, occurred in South Africa that was caused by contaminated processed food produced by a Tiger Brands subsdiary, Enterprise Foods. "Today's announcement represents an important milestone and follows shortly on measures already taken in February 2025 to offer interim relief in the form of advance payments to identified claimants with urgent medical needs," Tjaart Kruger, Chief Executive Officer of Tiger Brands, said in a statement. The attorneys representing the plaintiffs will present the offer to the claimants who qualify whereas those who accept the offer will have the damages quantified. It is expected that this process will take several weeks. Before it can take effect, the High Court must review and approve the agreement to ensure it fairly protects class members' interests.
Daily Maverick
12-05-2025
- Business
- Daily Maverick
Seven years after deadly outbreak, Tiger Brands agrees to settle certain claims in listeriosis class action
While Tiger Brands' liability for the listeriosis outbreak in 2017/18 has yet to be determined in court, the food producer has agreed to settle certain claims in the long-running class action lawsuit linked to its now-closed Enterprise Foods facility in Polokwane, Limpopo. Seven years after South Africa experienced the largest documented listeriosis outbreak in history, resulting in more than 1,000 infections and 218 deaths, food producer Tiger Brands has agreed to settle claims from certain groups in the protracted class action lawsuit brought against it. On Monday, 12 May, Tiger Brands released a media statement confirming that the attorneys representing its lead reinsurer, QBE Insurance Group Limited, had presented a settlement offer to the plaintiffs' attorneys as part of a 'road-map to a possible overall resolution of the listeriosis class action'. 'The settlement offer, which was made on 25 April 2025, includes an undertaking to pay the claimants' proven or agreed compensatory damages in terms of section 61 of the Consumer Protection Act 68 of 2008,' stated Tiger Brands. 'The offer is subject to certain conditions and has been made without admission of liability and in full and final settlement of the claims of the claimants.' The listeriosis outbreak in 2017/18 was linked to contaminated polony produced at a now-closed Enterprise Foods factory in Polokwane, Limpopo. Tiger Brands was the parent organisation for Enterprise Foods. QBE Insurance Group has authorised settlement offers to the following groups of claimants in the class action who suffered as a result of the 2017/18 outbreak caused by the sequence type 6 (ST6) strain of Listeria monocytogenes: Claimants who contracted (or whose mothers contracted) listeriosis caused by ST6; Claimants whose legal breadwinners, on whom they were legally dependent, died of listeriosis caused by ST6; and Claimants whose legal dependents, who were in their care, contracted listeriosis caused by ST6. 'Today's announcement represents an important milestone and follows shortly on measures already taken in February 2025 to offer interim relief in the form of advance payments to identified claimants with urgent medical needs. It also demonstrates our commitment to continue to work closely with our insurers and their appointed attorneys to explore a resolution of the entire class action,' said Tjaart Kruger, CEO of Tiger Brands. According to Tiger Brands, the next steps involve the offer being conveyed by the plaintiffs' attorneys to 'those claimants who qualify', before damages of those claimants who accept the offer will be quantified. 'It is expected that the process to present the offer to these qualifying claimants will take several weeks, and that arrangements to quantify their damages will follow over the ensuing weeks,' said Tiger Brands. 'The class action, which is being managed in two stages, is still at the first stage during which liability is to be determined by the court. Only if Tiger Brands is found to be liable will the issue of causation arise, in the second stage of the class action, as well as an assessment of compensation payable to qualifying claimants for damages suffered. 'As previously stated, Tiger Brands has adequate product liability insurance cover for a group of its size.' Long legal road In September 2024, Daily Maverick reported on claims by the plaintiffs' legal team that they had received two important pieces of evidence related to the outbreak from the National Health Laboratory Service (NHLS), proving that the outbreak was linked to Tiger Brands' Enterprise Foods facility in Polokwane. The first was confirmation that the strain that was predominantly responsible for the outbreak, the sequence type 6 strain, was not found in any other facility or location apart from Tiger Brands' Enterprise facility in Polokwane. In January 2024, the National Institute for Communicable Diseases (NICD), an institute of the NHLS, also provided public access to DNA sequence data for 403 ST6 isolates (a culture of microorganisms isolated for study) from the listeriosis outbreak. These isolates were derived from samples collected from human patients, food products and the environment at the factory in Polokwane; sequenced by the NICD; and analysed by several methods, including multilocus sequence typing (MLST) and core genome MLST. Core genome MLST, a globally recognised method for precisely identifying individual bacterial strains, showed that about 382 of the 403 ST6 isolates had no more than four allelic differences, which meant they were closely related and shared a common origin. On Monday, the legal team representing the class action claimants – made up of Richard Spoor Inc Attorneys and LHL Attorneys – released a statement welcoming Tiger Brands' 'effective admission of liability' for the 2017/18 listeriosis outbreak. 'Tiger Brands' decision to settle claims is based on the incredible investigative work of the National Institute for Communicable Diseases, under the direction of the Minister of Health, Dr Aaron Motsoaledi. Their scientific investigation, which conclusively traced the outbreak to Tiger Brands' Polokwane facility, has been internationally peer-reviewed and praised. These findings have since been confirmed by world-renowned epidemiologists, including Tiger Brands' own experts,' said the listeriosis class action attorneys. In February, Daily Maverick reported on a joint statement released by Tiger Brands, Richard Spoor Inc and LHL Attorneys, which announced that a limited number of claimants in the listeriosis class action would receive interim financial relief. These were claimants who had applied for urgent medical assistance while the class action process continued. Fight for a fair settlement In Monday's statement, the class action attorneys commended Tiger Brands, its shareholders and insurers for agreeing to compensate victims, adding that this decision 'reflects a positive move towards corporate accountability, responsible citizenship and justice for victims'. The claimants' legal team noted that a settlement mechanism still needed to be finalised, including how individual damages would be assessed and how claimants would be categorised under the settlement structure. 'Before any settlement can be finalised, it must be presented to the High Court, which will determine its fairness as the ultimate guardian of class member interests. While this process will require time, we remain confident that Tiger Brands' renewed and demonstrable commitment to the victims will ultimately lead to a comprehensive resolution of all claims,' the class action attorneys said. The legal team noted that while the agreement to settle represented a significant breakthrough, serious challenges remained in identifying additional victims of the outbreak. 'Many victims of the outbreak have not yet come forward and therefore have not been identified or located. The minister of health has requested a full update and has shown his commitment to assisting by providing Department of Health records to help confirm and trace victims,' they said. Mark Heywood, a veteran health activist who has championed the rights of the families affected by the listeriosis outbreak, welcomed the news as a significant step forward and de facto admission of liability by Tiger Bands. 'It's shocking that it has taken Tiger Brands seven years to admit the obvious. But now that it has, I call on it to embrace its responsibility to the very single person who was harmed, end delaying tactics and move expeditiously to compensate all victims. There are a lot of people still suffering from the companies' negligence. They deserve an apology, finality and justice,' Heywood said. DM
