TIGER BRANDS LIMITED - Trading update for the four month period ended 31 January 2016
TBS 201602160028A
Trading update for the four month period ended 31 January 2016
TIGER BRANDS LIMITED
“Tiger Brands” or “the Company”
(Incorporated in the Republic of South Africa)
(Registration number 1944/017881/06)
Share code: TBS
ISIN: ZAE000071080
TRADING UPDATE FOR THE FOUR MONTH PERIOD ENDED 31 JANUARY
2016
The group achieved a 7% increase in turnover from continuing operations in
the four month period ended 31 January 2016, compared with the
corresponding prior period. Domestic sales volumes softened marginally as a
result of increased levels of pricing pressure and a slow-down in consumer
demand. With consumers under considerable financial pressure , the impact of
the depreciating rand and rising soft commodity prices was only partially offset
by price increases.
The exports and international businesses delivered an improved underlying
performance, benefiting from rand weakness and the turnaround of
underperforming operations.
Given the sustained weakness of the rand, the inflationary pressures on the
group’s raw material cost base are likely to intensify over the balance of the
year. In a constrained consumer environment where competition is intense, it
is expected that trading conditions will remain challenging as the company
seeks to pass through price increases. The company’s portfolio of market
leading brands, together with a rigorous focus on cost control will help to
mitigate these challenges. Furthermore, volumes and margins will continue to
be managed judiciously to ensure long term sustainable profit growth.
Shareholders are referred to the announceme nt issued on 14 December 2015
advising shareholders that Tiger Brands had reached agreement with Dangote
Industries Limited (“DIL”) to dispose of its shareholding in Tiger Branded
Consumer Goods plc of Nigeria (“TBCG”), subject to certain regulatory
approvals.
Shareholders are advised that the approvals of the South African Reserve
Bank and the Securities and Exchange Commission of Nigeria have been
obtained. The only remaining condition is the approval of the Nigerian Stock
Exchange, which is expected shortly. A further announcement will be made
once the transaction becomes unconditional.
Bryanston
16 February 2016
Sponsor:
J.P. Morgan Equities South Africa Proprietary Limited
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