JSE-listed Tiger Brands’ revenue for the six months ended March 31 2022 only increased by a subdued 2% to R16.8 billion, as price inflation climbed and parts of its business saw volume declines.
Headline earnings per share (Heps) for the period declined by 2% to 729 cents per share, while group operating income – before impairments and non-operational items – dropped by 5% to R1.5 billion and operating margin declined to 8.9% from 9.6%.
The group’s exports and international segment reported some positive growth, with its total revenue increasing by 5% to R1.9 billion, supported by an improvement in performance by its deciduous fruit portfolio.
“Revenue in the Deciduous Fruit business increased 19% to R698 million, benefiting from elevated international fruit prices and improved volumes.”
“Despite an improved top line, the business recorded an increased operating loss of R54 million (2021: R52 million) due to an adverse sales mix and higher freight and packaging costs.”
In light of the improved performance, the group says it will no longer be selling the Deciduous Fruit business, after trying to find a buyer for more than two years.
However, it adds that the decision to terminate the process comes after interested parties were unable to secure funding to conclude the disposal of the business.
“Engagements with key stakeholders regarding the future of this business are currently underway, the outcome of which will be communicated to shareholders over the coming months.”