| Thu 5 Nov 2009, 16:00 | | TBS - Tiger Brands Limited - Trading statement |
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TBS
TIIH
TBS - Tiger Brands Limited - Trading statement
TIGER BRANDS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1944/017881/06)
Share code: TBS
ISIN code: ZAE000071080
TIGER BRANDS LIMITED
("the Company")
TRADING STATEMENT
Introduction
The Company is of the view that a reasonable degree of certainty exists with
regard to its performance for the twelve months ended 30 September 2009 to
enable it to issue this trading statement.
The unbundling and separate listing of the Company`s Healthcare interests on 29
August 2008 and the disposal of the Company`s interest in Sea Harvest on 28 May
2009 has given rise for the need to distinguish in this trading statement
between earnings from continuing operations, which exclude both the Healthcare
and Sea Harvest results, and total Group earnings. Total Group earnings include
the Healthcare results for the eleven months ended 29 August 2008 in the
comparative period as well as the results of Sea Harvest for the eight months
ended 28 May 2009 in the current period and for the full twelve months of the
comparative period.
Earnings from Continuing Operations
Shareholders are advised that in respect of the year ended 30 September 2009, it
is expected that headline earnings per share ("HEPS") from continuing operations
will reflect an improvement of between 18% and 21% compared to that achieved in
the previous financial year. Whereas the trading environment for the second six
months remained challenging, the operating results for the full year benefited
from a particularly strong performance by the Group`s Grains businesses.
Earnings per share ("EPS") from continuing operations for the twelve months
ended 30 September 2009 is expected to be between 43% and 46% above that
achieved in the previous financial year.
The higher percentage improvement in EPS compared to HEPS is primarily due to
the inclusion, in 2009, of an abnormal amount of R201,1 million (relating to
the post tax profit from the disposal of the Group`s residual shareholding of 10
326 758 ordinary shares in Adcock Ingram Holdings Limited) as well as the
inclusion of a capital profit of R62,1 million from the disposal of the Group`s
73.16% interest in Sea Harvest. Furthermore, the comparative period included a
charge of R112,3 million relating to the impairment of the carrying value of the
goodwill associated with the Beverages business. These three items were
excluded for the purposes of determining HEPS in the respective reporting
periods.
Total Group Earnings
Total Group HEPS for the year ended 30 September 2009 is expected to reflect a
decline of between 6% and 9% compared to that achieved in the previous financial
year, whilst total Group EPS is expected to reflect an increase of between 8%
and 11%. For the reasons outlined in the introductory statement, total Group
HEPS and total Group EPS for the current year are not directly comparable with
the previous year.
The results for the twelve months ended 30 September 2009 will be released on 24
November 2009 when a detailed analysis of the performance of the Company will be
provided. The information in this trading statement has not been reviewed or
reported upon by the Company`s auditors.
Bryanston
5 November 2009
Sponsor:
J.P. Morgan Equities Limited
Date: 05/11/2009 16:00:17 Produced by the JSE SENS Department.
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