Latest news with #TigerBrands'
IOL News
3 days ago
- Business
- IOL News
Tiger Brands announces special dividend and strong interim results
Tiger Brands shareholders benefited from a share buyback program started in the first half, and as at March 31, 2025, R500 million was used to repurchase 1.8 million shares. The share buybacks would continue as the opportunities arose, the company said. Image: IOL file Tiger Brands' share price gained 5.7% on Wednesday, continuing a year-long rally in the price after the food producer declared a whopping 1 216.00 cents per share special dividend for the six months to March 31, on top of the ordinary dividend. The share price was trading at R340.67 on the JSE on Wednesday around midday, a price that had risen steadily by 77.4% over 12 months. The ordinary interim dividend came to 415 cents a share, up 19% compared with the interim period in 2024. The total amount to be paid out to shareholders via the special dividend is R1.8 billion. Shareholders would also benefit from a share buyback program started in the first half, and as at March 31, 2025, R500 million had been deployed to repurchase 1.8 million shares. The share buybacks continued after the end of the interim period, and by May 9, 2025, 4.5 million shares had been repurchased for a cumulative R1.2bn. 'We paid out the special dividend from two main considerations. The first was cash from our portfolio disposals, and the second was our overall significant improvement in operating cash flows arising also from our better performance,' chief financial officer Thrushen Govender said in an interview. Improved working capital contributed a cash inflow of R1bn in the first half, compared to an outflow of R4bn last year. Consequently, net cash from operations increased to R3.4bn from R0.8bn at the same time last year. Video Player is loading. 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Advertisement Next Stay Close ✕ Ad loading This, combined with proceeds from the disposal of non-core operations, resulted in the net cash position improving by R8.6bn to R5.9bn, which was well up from a net debt of R2.7bn at the same time last year. Govender said the share buybacks would continue if opportunities arose, and further special dividends might also be considered given the business units identified as non-core that might be disposed of, although nothing was cast in stone yet, as the non-core business units "are certainly not fire-sales.' The three companies were the chocolate business within the Snacks Treats and Beverages segment, the King Foods sorghum business, and the Chococam subsidiary in Cameroon Categories. The strong results arose from a focus on driving value for consumers, executing strategy, improved logistics optimisation, value engineering, and factory efficiencies. The result was despite the constrained consumer environment. Overall revenue was ahead of the prior year by 2% at R18.5bn, driven by 2.1% price inflation and relatively flat volume. Govender said the volume growth followed years of volume decline and was cause for celebration. He said they were on track for continued growth in the second half. 'Our revised strategy and operating model, which places the consumer at the centre of everything we do, ensures that we drive affordability consistently across the portfolio,' Tjaart Kruger, the CEO of Tiger Brands, said in a statement. The volume growth was driven by Tiger Brands' Culinary Business Unit, through deliberate volume recovery initiatives, as well as notable recovery in Milling and Baking, and Snacks, Treats and Beverages. The sale of Baby Wellbeing generated a R455m non-operational taxed profit, while the after-tax profit on the disposal of associate Empresas Carozzi. in the first half amounted to R304m. The total proceeds from these transactions was R4.4bn, with the remaining R0.6bn received in April 2025. In May 2025, Tiger Brands entered into an agreement to dispose of Langeberg & Ashton Foods. As part of the sale, the group would invest R150m towards a Community Trust that will benefit the Langeberg community through socio-economic development initiatives, and which will hold a 10% stake in the new company owning Langeberg. Tiger Brands has also made progress on the sale of its Randfontein Maize Milling operations. The maize category was identified as non-core due to the evolution of the local maize market competitiveness and the increasing establishment of regional millers. The disposal of the wheat mill would also facilitate a simpler and expedited transaction as they were located on the same manufacturing site. BUSINESS REPORT Visit:
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
Daily Maverick
18-05-2025
- Business
- Daily Maverick
Tiger Brands passes the fruit basket to growers in sale of Langeberg & Ashton Foods
On Friday, 16 May, Tiger Brands, South Africa's largest food producer, announced the sale of its deciduous fruit business, Langeberg & Ashton Foods, to a consortium led by local fruit growers for a nominal sum of R1. The deal includes a R150-million commitment by the food producer to establish a community trust aimed at socioeconomic development initiatives benefiting the Langeberg community. This trust will hold a 10% beneficial shareholding in NewCo, with the consortium retaining the remaining 90% equity. The sale will also safeguard more than 3,000 permanent and seasonal jobs in a region heavily dependent on the deciduous fruit industry. Tiger Brands will invest R31-million to upgrade the effluent plant at Langeberg & Ashton Foods, ensuring compliance with environmental regulations and reinforcing its commitment to responsible corporate citizenship. 'The success of this sale will ensure the sustainability of the South African deciduous fruit industry and consequently improve the livelihoods of the Langeberg and Ashton Foods employees and the broader communities in these areas,' said CEO of Tiger Brands Tjaart Kruger. Situated in Ashton, Western Cape, Langeberg & Ashton Foods has played a vital role in the local economy since it was established in 1940. The decision to sell the business is part of a strategic plan announced by Tiger Brands in May 2020, aimed at simplifying its operations and concentrating on its core areas of business. 'It has been a long journey to find the right partner with the ability and financial capacity to ensure the continued and sustainable operation of the Langeberg & Ashton Foods business,' said Anthony Dicey, chairman of the Ashton Fruit Producers Co-operative. He said the efforts culminated in the signing of the sale of the business agreement, paving the way for the newly established NewCo, or Langeberg Foods Proprietary, to enter an exciting new era of supplying consumers with its well-known quality products. Real impact Langeberg & Ashton Foods forms part of Tiger Brands' international segment, producing canned fruit and purées for export markets (more than 80% of the business) and supplying Tiger Brands' culinary business unit with canned fruit under the KOO brand for southern African markets. As part of the deal, Tiger Brands and NewCo will enter into a contract manufacturing agreement for the purchase of canned fruit under the KOO brand. 'The conclusion of the sale marks a significant milestone in Tiger Brands' portfolio optimisation strategy and will enable management to deploy capital and drive focus on the core business that can deliver sustainable growth,' Kruger said. Tiger Brands' wider portfolio optimisation The sale also fits into a broader pattern of portfolio simplification by Tiger Brands. In November 2024, the company announced the disposal of its baby wellbeing business, comprising baby toiletries and medicinal products, to an unrelated third-party purchaser for more than R600- million. The baby wellbeing business included a range of trusted South African brands such as Elizabeth Anne's and Phipp's, while Tiger Brands retained its baby nutrition business, including the Purity brand, which remains a core part of its food manufacturing portfolio. Broader backdrop – financials and legal clouds The company recently reported a modest 1% rise in revenue and a 4% increase in headline earnings per share for the year ended September 2024. Dividends rose 4.3%, while the share price has sprinted about 30% this year, fuelled more by market sentiment than stellar operational growth. What this means for you Amid financial shifts and ongoing legal challenges, the sale of Langeberg & Ashton Foods marks a pivotal moment – not just for Tiger Brands, but for employees, communities, consumers and investors connected to the business: Employees and local communities: Job security for more than 3,000 permanent and seasonal workers is preserved and the Community Trust promises ongoing socioeconomic development initiatives, including food security, education and local infrastructure support. Consumers: Production continuity means familiar canned fruit products, including KOO brand peaches and pears, will remain available locally and internationally. Investors: The divestment allows Tiger Brands to streamline its portfolio, focusing on core growth areas, potentially enhancing operational efficiency and financial performance.
IOL News
13-05-2025
- Health
- IOL News
Listeriosis victims closer to ‘justice'
Some victims of the 2017/18 listeriosis outbreak have slammed Tiger Brands for excluding them from the settlement offer. Image: Simphiwe Mbokazi/Independent Media IN WHAT has been hailed as a significant breakthrough in the ongoing battle to have Tiger Brands held accountable for the listeriosis outbreak, some of the victims could soon reach a settlement with the company, marking a step closer to justice. Tiger Brands through the company's lead reinsurer, QBE Insurance Group, presented a conditional settlement offer to the plaintiffs' legal team. The offer is said to apply to certain victims of the deadly 2017/2018 listeriosis outbreak. It specifically caters to victims who were affected by the ST6 strain of Listeria monocytogenes which is the same strain that was ultimately traced back to the Enterprise Foods factory in Polokwane. In 2017/2018, South Africa recorded the largest listeriosis outbreak in history, claiming the lives of 218 people - mostly children - and affecting over 1000 with the outbreak eventually traced to Tiger Brands' Polokwane facility. "Tiger Brands confirms that the attorneys representing its lead reinsurer (QBE Insurance Group Limited) have presented a settlement offer to the plaintiffs' attorneys as part of a roadmap to a possible overall resolution of the listeriosis class action. "The lead reinsurer, having primary conduct of the defense of the class action against Tiger Brands, has with Tiger Brands' support and agreement authorised the insurers' attorneys to make settlement offers to specific named persons who are members of the following classes of claimants who suffered damage as a result of listeriosis caused by genotype L1-SL6-ST6-CT4148 of Listeria monocytogenes (ST6)," the company said. The settlement offer will cover 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, and who contracted listeriosis caused by ST6. In a statement, Tjaart Kruger, Chief Executive Officer, Tiger Brands stated: '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.' Reacting to this commitment by the food company, Nilesthra Padayachee who represents one of the two law firms that undertook class action against Tiger Brands, indicated that the settlement is a first step towards taking responsibility for the outbreak. "This commitment demonstrates the first step towards Tiger Brands taking responsibility for the devastating harm caused by the outbreak. It is a significant breakthrough as it is the first offer of settlement received since the class action was certified. This comes after their own experts have had an opportunity to review data provided by the NICD, which has conclusively traced the outbreak to the Tiger Brands Polokwane facility. "Tiger Brands is finally taking accountability by agreeing to compensate certain victims. The offer reflects a positive movement towards corporate responsibility and justice for all victims. We remain hopeful about the possibility of a structured and fair settlement agreement that encompasses all class members," said Padayachee. While the lawyers who represented more than 200 claimants of the 2017/18 listeriosis outbreak have welcomed the recent commitment, some victims have slammed the company for excluding them from the settlement offer. Candice Dupreez and Shereen Louw, the parents of two children who contracted listeria, have slammed Tiger Brands saying their children, who now have to contend with a series of long-term side effects, have not been compensated for the 2017/18 trauma. 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. 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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. Next Stay Close ✕ "Tiger Brands have not taken any responsibility for the pain and trauma they have caused us and our children. We are not part of the settlement even though we also took part in the class action against them. "We as the parents and party to the class action have tried to communicate with the lawyers but were told that this offer is for certain people while our children continue to suffer severe back pains and other health complications due to the outbreak," said Dupreez. The Department of Health welcomed Tiger Brands' decision to settle the listeriosis class action, calling it a crucial step towards closure for the affected families while it also urged families who lost loved ones to come forward if they have medical records that may support a valid claim. Health spokesperson Foster Mohale said that intersectoral coordination on food safety remains critical to prevent future outbreaks. "The outbreak highlighted the importance of consistent and strict adherence with food safety practices in the processing and handling of ready-to-eat foods, especially for mass supply. Food safety and hygiene practices remain crucial for public health, preventing foodborne illnesses, reducing food waste and avoiding costly food recalls." Cape Times
The South African
13-05-2025
- Health
- The South African
Department applauds Tiger Brands' decision to pay listeria victims
South Africa's largest food producer, Tiger Brands, has offered a settlement to families affected by the 2017 listeriosis outbreak, which killed over 200 people and sickened over 800. Tiger Brands announced on Monday that it will make settlement offers to people who suffered damages after contracting listeriosis, a food-borne disease, from its products. In 2017, a listeriosis outbreak linked to contaminated processed foods resulted in over 200 deaths and sickened more than 800 people. A class action lawsuit was filed against Tiger Brands on behalf of more than a thousand people after the origin of listeriosis was traced back to the company's manufacturing in Polokwane. According to the company's statement, the attorneys representing Tiger Brands' lead insurer, QBE Insurance Group Limited, made settlement offers on April 25 to specific classes of claimants who suffered from listeriosis. '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 the statement. The Department of Health, according to Sowetan Live , welcomes Tiger Brands' decision to settle the listeriosis class action lawsuit as it provides closure to families who lost loved ones to the disease. Foster Mohale, the spokesperson for the Department of Health, has urged anyone with evidence linking the listeriosis outbreak to the deaths of their loved ones to come forward. He said this will allow the department to access their clinical records and determine whether they have valid claims eligible for settlement. 'The outbreak highlighted the importance of consistent and strict adherence to food safety practices in the processing and handling ready-to-eat foods, especially for mass supply. Food safety and hygiene practices remain crucial for public health, preventing foodborne illnesses, reducing food waste, and avoiding costly food recalls.' Let us know by leaving a comment below, or send a WhatsApp to 060 011 0211 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X, and Bluesky for the latest news.
