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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
IOL News
21-05-2025
- Business
- IOL News
Strong performance doubles Southern Sun's dividend and occupancy reverts to normal levels
Southern Sun Elangeni & Maharani A view from the Southern Sun Elangeni & Maharani in eThekwini. Lower event activity in the Durban International Conference Centre negatively impacted the occupancy of the group's hotels in the city in the year to March 31. Image: Supplied Southern Sun doubled its dividend after lifting adjusted headline earnings per share a sturdy 34% to 75.6 cents for the year to March 31, following strong growth in the Western Cape and in Gauteng. Income was up by 9% to R6.6 billion. Occupancy increased by 2.2 percentage points to 60.8%. Net debt reduced to R266 million. A 25 cents a share dividend was declared. The refurbishments of Southern Sun Cullinan and Sandton Towers – reopened in July 2024 and December 2024, respectively – along with upgrades to the restaurant and rooms at Southern Sun Rosebank and Southern Sun Sandton, were well received by the market, directors said. These improvements contributed to increased occupancy and rate growth in Cape Town and Gauteng during the latter half of the financial year. The 12% increase in operating profits, with finance cost savings, resulted in a 30% increase in adjusted headline earnings for the year to R1bn. 'The cost restructuring in 2021 enabled the group to deliver 14% EBITDAR (earnings before interest, tax, depreciation, amortisation, and restructuring), from 9% income growth,' the group directors said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading Total income comprised room revenue growth of 10% to R4.4bn, supported by average room rate growth of 5% and the increase in occupancy. Food and beverage revenue increased 6% to R1.6bn in line with occupancy growth, property rental income has grown by 19% to R272m, while other revenue has increased by 7% to R330m. The recovery of occupancies to the group's long-term average, especially in regions that had underperformed in the current year, presents an opportunity in the medium term, directors said. However, some regions hindered overall performance in the past year, particularly KwaZulu-Natal and Mozambique. In South Africa, corporate and leisure bookings rebounded after the May 2024 elections, but government demand outside of G20-related events was slower to recover. There were signs of improvement in the third quarter, but activity slowed again in the last quarter due to the uncertainty surrounding the approval of the national budget. Additionally, reduced event activity at Durban International Convention Centre negatively impacted the group's hotels in Durban, although trading in Umhlanga remained stable. In Mozambique, political unrest and rioting in Maputo since November 2024 significantly affected demand at the Southern Sun and StayEasy hotels. Although this situation stabilised after the inauguration of the president in January, 2025, and supported by the fact that the hotels are in a secure zone surrounded by embassies and security forces, occupancy levels continued to lag. 'The group intends to maintain the dividend payout ratio, and in the absence of major expansion capex, will continue to apply available cash resources towards share buybacks when appropriate,' the directors said. A 3% reduction in the weighted average number of shares reflected the impact of the share buyback implemented in 2024. Visit:
Zawya
24-04-2025
- Business
- Zawya
South Africa: Diversification of services sees Capitec grow headline earnings by 30%
Despite a challenging economic climate, digital bank Capitec, for the financial year ending 28 February 2025, reported a 30% increase in headline earnings to R13.7bn. Capitec has, for the financial year ending 28 February 2025, reported a 30% increase in headline earnings to R13.7bn. Gerrie Fourie, chief executive officer of Capitec attributes this to the bank's solid foundations for long-term growth, powered by its scalable technology and diversified business model Personal banking now constitutes 45% of total earnings, insurance accounts for 25%, strategic initiatives (VAS and Capitec Connect) contribute 23%, business banking makes up 5%, and AvaFin (consolidated from 1 May 2024) adds 2%. It attributes this to its diversification of services over the past five years which include the introduction of business banking, value-added services (VAS), Capitec Connect, and insurance under its own insurance licence as well as its integrated digital ecosystem. As a result, the bank's active client base now exceeds 24 million. Capitec's strategic focus on value-added services (VAS) and the Capitec Connect mobile virtual network operator (MVNO) has delivered exceptional results, providing significant client value and convenience. Their combined net income surged by 61% to R4.4bn. Growth in airtime and data Over 11 million clients now utilise the Capitec app to purchase airtime, data, electricity, vouchers, and to pay bills. The bank captures over 40% of South Africa's airtime and data transactions, and one in five digital vehicle licence renewals now occur on its platform, saving clients both time and money. Capitec Connect has expanded its unique value proposition beyond the original no-expiry bundle to include highly competitive 1-, 7-, and 30-day validity options, which now account for over 60% of sales. Active SIM subscribers have grown by 74% to 1.6 million, demonstrating the appeal of its simplified, affordable data offering integrated within the banking ecosystem. Data usage has surpassed 13.4 petabytes, contributing R193m in net income. Digital payments continue to accelerate The shift to digital payments continues to accelerate. Card payments at tills and online have risen by 18% to more than 2.4 billion transactions, while cash transaction volumes have increased by only 3%. E-commerce transactions, including those via Capitec Pay, surged by 47% to 488 million. More than 1 million clients are now actively using their Capitec cards through digital wallets such as Apple Pay, Google Pay, and Samsung Pay. Capitec has also launched a new International Payments solution on the app, enabling fast and affordable payments to over 50 countries in 13 currencies, for a fixed fee of R175, with funds reflecting within hours. Meanwhile, new purpose credit solutions are helping clients fund vehicles, education, and home improvements through more than 27,000 partner locations. Credit sales to clients earning over R50,000 a month grew 56%, as the bank introduced personalised in-app offers, secured home loans, youth credit cards, and repay-as-you-earn loans for side hustlers and freelancers. Insurance records rapid growth Operating under its licence, Capitec Life now manages over 3.3 million active funeral and life cover policies, insuring 15 million lives and contributing R1.9bn in net insurance income to the group. Since May 2024, the bank has added in excess of 600,000 active funeral and life cover policies on its own licence. New business Active business clients increased to 218,207 (up 15%), forex transactions grew by 92%, and scored loan balances rose by 111% to R1.3bn. Capitec's merchant commerce strategy involved selling new smart card machines outright rather than renting them, and providing the most competitive commission rates, which has helped grow the number of active trading merchants by 124% to 63,000, with a total annual turnover of R64bn. This simplified approach, along with newly reduced and transparent pricing, has saved businesses R289m in banking fees over the past year alone. A focus on education Capitec's broader impact also includes significant contributions to financial education and social upliftment. Through the Capitec Foundation, more than 21,000 learners, educators, and school leaders benefited from improved maths education programmes. Additionally, 4,000 employee volunteers partnered with nonprofits to deliver 345 initiatives that reached over 27,000 learners. Capitec's MoneyUp Academy and WhatsApp learning bot have delivered 1.6 million lessons, further driving financial literacy across the country. Solid foundations for long-term growth Gerrie Fourie, chief executive officer of Capitec says, 'We have laid solid foundations for long-term growth, powered by our scalable technology and diversified business model. 'We will continue to invest in technology and data to deepen our client knowledge and refine our offerings, ensuring each part of our ecosystem delivers distinct value. 'Key future initiatives involve the continued development of our integrated ecosystem, enhancing our payment capabilities, and growing our business banking and insurance businesses. 'We remain passionate about making a meaningful difference and helping our clients and the South African economy grow.' Fourie asserts that the results represent more than mere numbers - they signify progress in transforming lives. 'We have always believed that banking should be simple, affordable, accessible, and personal. These results demonstrate that we are achieving just that. 'Through our high-volume, low-margin business model, we are enabling everyone to access solutions that allow them to take control of their finances, protect their families, manage businesses, and unlock opportunities. 'Our purpose-driven strategy is helping us scale sustainably and, most importantly, it is assisting 24 million South Africans to grow every day.'
The Herald
23-04-2025
- Business
- The Herald
Shareholders score big after record Capitec earnings
Capitec, South Africa's biggest retail bank by customers, is increasing its payout to shareholders after record annual earnings. The group's return on equity increased to 29% during the year under review, paving the way for the dividend payout to 55% from 50%. Capitec reported a 30% jump in headline earnings to R13.6bn from R10.6bn a year ago with financial highlights including a 54% increase in net interest income after credit impairments to R11.9bn. The group reported a 7.5% credit loss ratio, a 61% increase in value added services and Capitec Connect to R4.4bn and a 44% jump in funeral and life income to R1.9bn. The bank said more than 11-million clients now used the Capitec app to purchase airtime, data, electricity, vouchers and to pay bills. 'The bank captures more than 40% of South Africa's airtime and data transactions and one in five digital vehicle licence renewals now occur on its platform.' Capitec CEO Gerrie Fourie said: 'Through our high-volume, low-margin business model, we are enabling everyone to access solutions that allow them to take control of their finances, protect their families, manage businesses and unlock opportunities. Our purpose-driven strategy is helping us scale sustainably and, most importantly, it is assisting 24-million South Africans to grow every day.' Capitec, which was previously predominantly a credit lender, said its diversification strategy had paid off as personal banking now contributes 45% of total earnings, insurance accounts for 25%, strategic initiatives contribute 23% and business banking makes up 5%. TimesLIVE
TimesLIVE
23-04-2025
- Business
- TimesLIVE
Shareholders score big after record Capitec earnings
Capitec, South Africa's biggest retail bank by customers, is increasing its payout to shareholders after record annual earnings. The group's return on equity increased to 29% during the year under review, paving the way for the dividend payout to 55% from 50%. Capitec reported a 30% jump in headline earnings to R13.6bn from R10.6bn a year ago with financial highlights including a 54% increase in net interest income after credit impairments to R11.9bn. The group reported a 7.5% credit loss ratio, a 61% increase in value added services and Capitec Connect to R4.4bn and a 44% jump in funeral and life income to R1.9bn. The bank said more than 11-million clients now used the Capitec app to purchase airtime, data, electricity, vouchers and to pay bills. 'The bank captures more than 40% of South Africa's airtime and data transactions and one in five digital vehicle licence renewals now occur on its platform.' Capitec CEO Gerrie Fourie said: 'Through our high-volume, low-margin business model, we are enabling everyone to access solutions that allow them to take control of their finances, protect their families, manage businesses and unlock opportunities. Our purpose-driven strategy is helping us scale sustainably and, most importantly, it is assisting 24-million South Africans to grow every day.' Capitec, which was previously predominantly a credit lender, said its diversification strategy had paid off as personal banking now contributes 45% of total earnings, insurance accounts for 25%, strategic initiatives contribute 23% and business banking makes up 5%.
