.gif "Cash Connect")
Tiger Brands profit rises as bakeries, rice volume recovered
FMCG SUPPLIER NEWS
Bloomberg - May 31st, 08:22
Tiger Brands Ltd. (TBS), South Africa’s biggest food maker by market value, said the company regained volume in bakeries, rice and snacks and treats and maintained profit margins across many of its domestic businesses.
Net income for the six months through March increased 2.6 percent to 1.32 billion rand ($135 million), compared with 1.28 billion rand a year earlier, the Johannesburg-based company said in a statement today. Sales advanced 21 percent to 14 billion rand.
“The on-going economic pressures, resultant constraints on consumer spending and increased competitive intensity in the domestic market provide an appropriate context for these results,” the company said.
Tiger Brands, South Africa’s biggest processor of grains and the maker of Albany bread, is expanding in Africa to reduce exposure to its domestic market, which grew by 0.9 percent in the first quarter, less than the most pessimistic forecast of 15 economists in a Bloomberg survey. The company bought Dangote Flour Mills in Nigeria for about $200 million last year as acquisition opportunities dwindled at home.
“In the short term, volatility in soft commodity prices and foreign currency movements is likely to persist, exacerbating a tough trading environment,” it said.
Tiger Brands shares have declined 11 percent this year, compared with a 25 percent gain for Pioneer Foods Ltd. (PFG), the second-largest food company by market capitalization. The stock fell 2.9 percent to 289.25 rand this week in Johannesburg, valuing the company at 55.4 billion rand.
The company said interim dividends for the six months rose 5.1 percent to 3.10 rand
Related News
BOS Ice Tea launches in Belgium and Holland
18/10/2013 - 09:07
BOS Ice Tea has recently celebrated its third birthday in South Africa, and has taken the first steps into European markets, launching in Belgium and Holland earlier this month.
Walmart accelerating U.S. small store growth; upping tech investments
17/10/2013 - 11:18
Bentonville, Ark. - Wal-Mart Stores detailed a number of moves, including opening smaller stores in the United States, cutting back on overseas growth and increasing its investments in technology and e-commerce, on the occasion of the company’s 20th annual investor meeting.
CEOs: Africa is on the rise
14/10/2013 - 08:56
Johannesburg - Africa’s CEOs are optimistic about the prospects for growth over the next 12 months, according to the PWC Africa Business Agenda 2013.
Foschini African expansion to salvage poor SA retail outlook
11/10/2013 - 08:07
Foschini, JSE’s worst-performing clothing retailer this year, said it plans to open 21 new stores on the rest of the continent as consumers in South Africa continue to struggle in debt.
Bacardi opens first African office in Kenya
10/10/2013 - 12:32
The World’s largest privately held spirits company, Bacardi Limited is set to open its first African sales outlet in Nairobi, Kenya on Tuesday following the growing demand for luxurious goods such as alcoholic beverages by consumers.
