Tiger Brands Results for 6 Months to March
A brief look at Tiger Brands. The company told analysts this morning that the environment remains challenging – with a constrained consumer and intense competition, and this is not about to change in the short term. The slowdown in consumer spending is going to continue. Rising cost inflation is another worry. Diluted headline earnings per share (heps) were up 4.7% in the half year. Revenue was up 20.6%. They have a portfolio of impressive brands, mainly in the food arena, and are working hard on expansion into Nigeria.
Ron Klipin from SA Stockbrokers:
They face major challenges. They are under pressure as consumers buy value. Then there is Nigeria and their brand portfolio.
With the rand having broken through the 10 to the dollar level this afternoon, the economy is a big worry. People will always need to buy food, but will they trade down to less-Famous but equally Tigerish Brands? We should learn more in the second half of their financial year.