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Country Bird Holdings to acquire Enterprise Foods from Tiger Brands (Gallo Images / Netwerk24)
Tiger Brands says that despite an increase in revenue, its profits fell over the past year due to SA’s strained economy, the national shutdown, and the impact of Covid-19.
The food group released its annual results for the year ending September 30, 2020 on Friday, which showed that although its revenue increased by 4% from R28.5 billion in 2019 to R29.8 billion by 2020, earnings fell from R3.8 billion. to R1 billion.
“The results for the year have been disappointing, reflecting the challenges the company faces in maintaining margins in what was already a difficult consumer environment before the start of the Covid-19 pandemic,” said CEO Noel Doyle.
The impact of SA’s strained economy on consumer spending, along with increases in input costs and costs related to Covid-19 were the key factors behind the decline in profits. The group also reduced its staff by 400 to cut costs.
Tiger Brands recently sold its value-added meat products business, Enterprise, to poultry company Country Bird Holdings. The group is still facing a class action lawsuit related to the listeriosis outbreak.
The food group’s operating income decreased 18% to R2.6 billion, from R3 billion in 2019 and its main earnings per share decreased by 29% to 940 cents from 1322 cents last year. However, the company said its cash flow generation was strong and that it would declare a final ordinary dividend of 537 cents and a special dividend of 133 cents.
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