30 May, 2013 18:37

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.

Expert view:

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.

Conclusion

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.

Tweets of the Day

Michael Jordaan @MichaelJordaan: Why does everyone all of a sudden want to have coffee with me? Don’t they know I prefer wine?

Ryan @ryguy_smith: 50 Shades of Grey is actually a story about Brussels’ weather.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

%d bloggers like this: