| Thu 18 Nov 2004, 16:50 | | Results for the12 months ended 30 September 2004 |
|
Tiger Brands Limited - Group Results And Dividend Declaration
TIGER BRANDS LIMITED
(Registration number 1944/017881/06)
(Incorporated in the Republic of South Africa)
Share code: TBS ISIN: ZAE000023560
Group Results and Dividend Declaration for the 12 months ended 30 September 2004
- Headline earnings per share +19%
- Operating income from continuing operations +23%
The reviewed results for the year ended 30 September 2004 are set out herein.
This report has been prepared using the same principles as contained in
accounting statement AC127. Except as disclosed in note 5, the principles
adopted herein are consistent in all material respects, with those applied in
the previously published annual financial statements and comply with the
requirements of Statements of South African Generally Accepted Accounting
Practice.
The unmodified review report issued by Ernst & Young on the condensed financial
statements contained in this preliminary report is available for inspection at
the company`s registered office.
GROUP BALANCE SHEET
As at 30 September
2004 2003
Rm Rm
Reviewed Audited
ASSETS
Non-current assets 5 000,7 4 549,2
Property, plant and equipment 1 711,0 1 631,4
Goodwill and intangible assets 715,9 454,7
Investments 2 367,0 2 268,8
Deferred taxation asset 206,8 194,3
Current assets 7 256,7 6 652,3
Cash and cash equivalents 1 320,0 1 025,1
Receivables 3 590,4 3 312,2
Inventories 2 346,3 2 315,0
TOTAL ASSETS 12 257,4 11 201,5
EQUITY AND LIABILITIES
Capital and reserves 4 052,3 3 331,2
Ordinary share capital and premium 778,0 721,4
Tiger Brands Limited shares held by
subsidiary (236,3) -
Non-distributable reserves and accumulated
profits 3 510,6 2 609,8
Minority interest 132,1 124,7
Total non-current liabilities 2 185,2 3 004,8
Deferred taxation liability 492,5 373,3
Provision for post-retirement medical aid 416,8 399,9
Long-term borrowings 1 275,9 2 231,6
Total current liabilities 5 887,8 4 740,8
Accounts payable, provisions and accruals 4 124,1 3 685,0
Taxation 292,4 350,7
Short-term borrowings 1 471,3 705,1
TOTAL EQUITY AND LIABILITIES 12 257,4 11 201,5
NOTES
Year ended 30 September
2004 2003
Rm Rm
Reviewed Audited
1. OPERATING INCOME
Operating income before amortisation of intangibles is reflected after charging:
Cost of sales 19 093,5 17 507,1
Sales and distribution expenses 2 159,0 1 875,2
Marketing expenses 567,7 555,6
Other operating expenses 1 231,8 1 183,0
Depreciation (included in cost of sales
and other operating expenses) 271,4 259,8
2. AMORTISATION OF INTANGIBLES
Goodwill 27,4 11,4
Trademarks and other intangible assets 12,0 8,8
39,4 20,2
Included in amortisation of goodwill is an amount of R12.3m (2003:R0.7m)
relating to Spar.
3. ABNORMAL ITEMS
Profit on sale or discontinuation of
operations, net 13,4 -
Profit on sale of land and buildings, net
of impairment charge on properties 6,4 26,6
Net profit/(loss) on sale of interest in
subsidiaries and joint ventures 26,2 (10,5)
Write down of investments, including
profit/(loss) on sale (164,9) -
Other (5,2) -
Abnormal (loss)/ profit before taxation (124,1) 16,1
Taxation (2,3) 1,4
(126,4) 17,5
Outside shareholders` interest (2,9) (0,2)
Abnormal (loss)/profit attributable to
shareholders in Tiger Brands Limited (129,3) 17,3
4. INCOME FROM ASSOCIATES
Normal trading 42,6 129,2
Abnormal items (2,5) (36,5)
Discontinuation of operations - (35,0)
Other (2,5) (1,5)
40,1 92,7
During the second half of the 2003 financial year, the equity accounted results
of Empresas Carozzi, the Group`s Chilean-based associate company, were
incorrectly reflected, resulting in the Group`s share of income from associates
being overstated by an amount of R19,3 million. This was offset by a
corresponding reduction in the Group`s equity accounted share of other reserves.
The carrying value of the investment and total shareholders` interests as shown
in the Group balance sheet as at 30 September 2003 were both correctly
reflected. Accordingly, the prior year figures have not been restated.
5. CHANGE IN ACCOUNTING POLICY
In terms of the JSE Listings Requirements, the various share trusts in the Group
are now consolidated. This change in accounting policy did not have a material
effect on earnings in the current year and earnings for the prior year increased
by R2,1 million. The balance sheet as at 30 September 2003 has been restated to
reflect an increase in investments of R4,8 million due to fair value
adjustments, an increase in accounts payable of R17,9 million representing the
fair value of the liabilities in respect of Astral Foods Limited options, a
reduction in accumulated profits of R5,6 million and a reduction in minority
interests of R7,5 million.
STATEMENT OF CHANGES IN EQUITY
Share Non-
capital and distributable Accumulated
premium reserves profits Total
Rm Rm Rm Rm
Balance at
30 September 2003 721,4 378,8 2 231,0 3 331,2
Issue of share capital
and premium 56,6 56,6
Share buy back (236,3) (236,3)
Movement in treasury
shares (1,2) (1,2)
Fair value adjustments
- investments 53,1 53,1
Foreign currency
translation reserve
movement (29,2) (29,2)
Transfers between
reserves 48,3 (48,3)
Impairment charge for
associate C&T Malt taken
against previously
revalued amounts (30,6) (30,6)
Movements in reserves
of associates 33,2 33,2
Legal reserves and
Other movements 0,9 1,2 0,9
Net profit for the
year 1 396,1 1 396,1
Dividends on ordinary
shares (521,5) (521,5)
Balance at
30 September 2004 541,7 454,5 3 056,1 4 052,3
Balance at
30 September 2002 696,4 556,2 1 476,2 2 728,8
Adjustment to opening
reserves on adoption
of AC133 172,2 0,8 173,0
Change in accounting
policy - consolidation
of share trusts (7,7) (7,7)
Adjusted balance at
1 October 2002 696,4 728,4 1 469,3 2 894,1
Issue of share capital
and premium 25,0 25,0
Fair value
Adjustments - investments (16,8) (16,8)
Foreign currency
translation reserve
movement (239,1) (239,1)
Transfers between
reserves 13,3 (13,3)
Impairment charge for
associate C&T Malt taken
against previously
revalued amounts (74,5) (74,5)
Movements in reserves
of associates (32,5) (32,5)
Net profit for the
year 1 259,9 1 259,9
Dividends on ordinary
shares (484,9) (484,9)
Balance at
30 September 2003 721,4 378,8 2 231,0 3 331,2
ABRIDGED CASH FLOW STATEMENT
Year ended 30 September
2004 2003
Rm Rm
Reviewed Audited
Cash operating profit 2 729,3 2 289,2
Working capital changes 169,0 (372,4)
Net financing costs (172,0) (169,9)
Dividends received 21,6 36,8
Taxation paid (678,5) (606,9)
Cash available from operations 2 069,4 1 176,8
Dividends paid (533,9) (500,4)
Net cash inflow from operating activities 1 535,5 676,4
Net cash outflow from investing activities (863,5) (1 190,1)
Net cash inflow/(outflow) before financing
activities 672,0 (513,7)
Net cash outflow from financing activities (434,7) ( 69,1)
Net increase/(decrease) in cash and cash
equivalents 237,3 (582,8)
GROUP INCOME STATEMENT
Year ended 30 September
2004 2003 Change
Rm Rm %
Notes Reviewed Audited
Revenue 25 421,5 23 039,1 10
Continuing operations 13 188,1 12 587,0 5
The Spar Group Limited 11 985,2 10 121,1
Discontinued operations 248,2 331,0
Operating income before
amortisation of
intangibles 1 2 369,6 1 918,2 24
Continuing operations 1 950,0 1 589,2 23
The Spar Group Limited 417,2 346,4
Discontinued operations 2,4 (17,4)
Amortisation of
intangibles 2 (39,4) (20,2)
Operating income before
abnormal items 2 330,2 1 898,0
Abnormal items 3 (124,1) 16,1
Results of operating
activities 2 206,1 1 914,1 15
Income from investments 39,0 48,7
Net financing costs (211,0) (218,6)
Profit before taxation 2 034,1 1 744,2 17
Income tax expense 659,0 548,9
Net profit after taxation 1 375,1 1 195,3 15
Income from associates 4 40,1 92,7 (57)
Minority interest (19,1) (28,0)
Dividend on preference
shares - (0,1)
Net profit for the year 1 396,1 1 259,9 11
Number of ordinary shares
in issue (000`s) 168 764* 167 466
*Includes 2 616 118 shares
held as treasury stock
(2003: nil)
Weighted average number
of ordinary shares on
which headline earnings
and basic earnings per
share are based (000`s) 167 567 167 106
Headline earnings per
ordinary share (cents) 927,3 778,2 19
Diluted headline earnings
per ordinary share (cents) 918,0 771,2 19
Basic earnings per
ordinary share (cents) 833,2 754,0
Diluted basic earnings
per ordinary share (cents) 824,7 747,1
Dividends per ordinary
share (cents) 370,0 290,0 (28)
Interim dividend declared 100,0 79,0 27
Final dividend declared 270,0 211,0 28
Reconciliation between net
profit and headline earnings Rm Rm
Net profit for the year 1 396,1 1 259,9
Adjusted for:
Profit on sale or
discontinuation of
operations, net (13,3) -
Profit on sale of fixed
assets, net of impairment
charge (9,8) (17,4)
Net (profit)/loss on sale
of interest in
subsidiaries and joint
ventures (19,2) 10,5
Write down of investments,
including (profit)/loss
on sale 170,4 -
Goodwill amortisation 27,4 11,4
Associates 1,4 37,4
Discontinuation of operations - 35,0
Other 1,4 2,4
Other 0,8 (1,3)
Headline earnings for the year 1 553,8 1 300,5 19
OTHER GROUP SALIENT FEATURES
Year ended 30 September
2004 2003
Reviewed Audited
Net worth per ordinary share (cents) 2 447 1 989
Net debt to equity (%) 34,1 55,3
Interest cover - net (times) 11,2 8,9
Current ratio (:1) 1,2 1,4
Capital expenditure (R million) 424,9 359,5
- expansion 151,4 164,7
- replacement 273,5 194,8
Capital commitments (R million) 180,8 232,8
- contracted 66,1 102,5
- approved 114,7 130,3
Capital commitments will be funded
from normal operating cash flows and
the utilisation of existing borrowing
facilities.
Contingent liabilities (R million)
Guarantees and contingent liabilities* 1 005,3 877,6
*R807,7 million (September 2003: R622,9
million) comprises contingencies in respect
of head leases entered into by the Spar
Group for which they have entered into
equivalent sub-leases. Following the
unbundling of Spar in October 2004,
these amounts will, in future, no longer
be liabilities. The aforesaid head leases
are without recourse to Tiger Brands Limited.
Carrying value of investments (R million) 2 367,0 2 268,8
Listed 396,6 291,6
Unlisted 1 335,7 1 208,4
Associates 634,7 768,8
Fair valuation of investments (R million) 2 380,5 2 270,1
Listed - market value 396,6 291,6
Unlisted - directors` valuation 1 335,7 1 208,4
Associates - directors` valuation 648,2 770,1
SEGMENTAL ANALYSIS
Year ended 30 September
2004 2003** Change
Rm % Rm % %
Reviewed Audited
REVENUE - continuing
operations
FMCG - DOMESTIC 10 073,9 71 9 276,5 70 9
Domestic food 8 821,7 62 8 203,3 61 8
Grains 4 538,4 32 4 740,1 34 (4)
- Milling and baking+ 3 475,3 24 3 753,8 27 (7)
- Other grains 1 063,1 8 986,3 7 8
Groceries 1 469,3 10 1 337,4 10 10
Snacks and Treats 868,8 6 865,3 7 -
Perishables 1 945,2 14 1 260,5 10 54
Consumer healthcare 1 252,2 9 1 073,2 9 17
OTC medicines 302,8 2 271,9 2 11
Personal 247,2 2 242,3 2 2
Babycare 281,4 2 226,5 2 24
Homecare 420,8 3 332,5 3 27
REGULATED HEALTHCARE 1 103,2 8 911,3 7 21
Branded medicines 729,6 5 639,5 5 14
Generic medicines 373,6 3 271,8 2 37
HOSPITAL PRODUCTS 638,4 5 617,2 5 3
EXPORTS 604,3 4 621,1 5 (3)
FISHING 1 627,9 12 1 703,9 13 (4)
OTHER - - 2,5 - -
14 047,7 100 13 132,5 100 7
Less: Intragroup revenue 859,6 545,5
13 188,1 12 587,0 5
OPERATING INCOME -
continuing operations*
(before amortisation of
intangible assets)
FMCG - DOMESTIC 1 123,6 57 886,3 55 27
Domestic food 859,8 43 666,9 41 29
Grains 512,6 25 391,3 24 31
- Milling and baking+ 338,9 16 259,6 16 31
- Other grains 173,7 9 131,7 8 32
Groceries 163,9 8 130,7 8 25
Snacks and Treats 32,0 2 85,4 5 (63)
Perishables 151,3 8 59,5 4 154
Consumer healthcare 263,8 14 219,4 14 20
OTC medicines 109,2 6 93,8 6 16
Personal 56,8 3 52,5 3 8
Babycare 46,5 2 32,0 2 45
Homecare 51,3 3 41,1 3 25
REGULATED HEALTHCARE 467,1 24 389,4 25 20
Branded medicines 350,1 18 315,8 20 11
Generic medicines 117,0 6 73,6 5 59
HOSPITAL PRODUCTS 209,6 11 175,5 11 19
EXPORTS 15,0 1 (78,2) (5) -
FISHING 150,8 8 219,1 14 (31)
OTHER (16,1) (1) (2,9) - (455)
1 950,0 100 1 589,2 100 23
+Comprises maize milling, wheat milling and baking, sorghum beverages and malt
based breakfast cereals.
Comprises rice and oat based breakfast cereals.
**Certain figures in 2003 have been reallocated between segments to conform with
the new segmental reporting format implemented at the half year.
COMMENTARY
Tiger Brands achieved an increase of 19% in headline earnings per share for the
twelve months ended 30 September 2004. At the interim reporting stage the
company indicated that the rate of increase for the full year was expected to be
well below the increase of 28% reported for the first six months. Stronger
domestic demand in the latter part of the year contributed to this better than
expected result, with good performances from most operations.
The results include those of The Spar Group Limited (`Spar`) which was unbundled
from Tiger shortly after the year end. On a pro forma basis, excluding the
results of Spar from both 2003 and 2004, headline earnings per share reflect an
improvement of 22%.
During the year Tiger Brands further focused on extracting synergies across its
Food and Healthcare operations and successfully integrated the various
acquisitions implemented in 2003. Greater emphasis on cost containment and
operational efficiencies has enabled the company to protect, and in some
instances, enhance margins.
OVERVIEW OF RESULTS
Revenue rose by 10% to R25.4 billion, with operating income increasing by 24% to
R2.4 billion. The resultant operating margin increased to 9.3% from 8.3% in
2003. Excluding Spar and after adjusting for intra group sales, the operating
margin from continuing operations improved to 13.9% (2003: 12.1%).
Acquisitions during the course of the previous financial year, together with the
acquisition by Spar of Nelspruit Wholesalers with effect from 1 November 2003,
have had a significant effect on revenue and operating income comparisons. On a
strictly comparable basis, excluding the effect of acquisitions, revenue and
operating income increased by 3% and 15% respectively.
The increase in operating income was achieved through good performances by the
Domestic Food and Consumer Healthcare operations. Regulated Healthcare and
Hospital Products performed well, with Regulated Healthcare benefiting, in
particular, from a strong contribution by generic medicines. Exports returned
to profitability after recording a significant loss in 2003. Spar achieved a
satisfactory result, reflecting the challenges of trading in a highly
competitive and low inflationary environment. The group`s Fishing businesses
produced disappointing results, with both Sea Harvest and Oceana recording lower
levels of profitability compared to the previous year.
The income statement reflects a net abnormal charge of R124.1 million. This
includes an impairment provision of R159.1 million against the carrying value of
the investment in associate company C & T Malt. The write-down was necessitated
by the continuing low level of profitability in its US, Canadian and UK
operations.
Cash generation for the year was strong with cash available from operations
increasing by R892.6 million to R2.1 billion. This was largely achieved through
the significant improvement in operating income as well as through lower working
capital levels. In 2004, there was a net reduction in working capital
requirements of R169.0 million compared to an additional working capital
requirement of R372.4 million in the previous year. Before financing activities
there was a net cash inflow of R672.0 million compared to an outflow of R513.7
million in 2003.
During the latter part of the year the company embarked on a general repurchase
of its shares. A total number of 2,616,118 shares were repurchased at an
aggregate cost of R236.3 million, equating to 1.6% of the shares in issue. The
shares are held as treasury stock. Notwithstanding the share buy-back, there was
a further improvement in the net debt to equity ratio from 55% at September 2003
to 34% at September 2004.
ASSOCIATES
The contribution from associates of R40.1 million was well below the prior year
figure of R92.7 million. However, the reported results are not strictly
comparable with the previous year due to the change in status of Enterprise
Foods from an equity accounted associate to a fully consolidated subsidiary with
effect from 1 May 2003.
Empresas Carozzi performed well at the trading level, although profitability was
adversely affected by the strength of the Chilean peso which resulted in
significantly lower export revenues from Central and South America. On an after
tax basis, the results were below the previous year due to an increase in the
average tax rate following the utilisation of various tax losses in the previous
year.
C & T Malt continued to experience extremely difficult trading conditions, with
the results from normal trading activities being well below the previous year.
Consolidation in the brewing industry is placing significant pressures on malt
prices as is the backward integration by brewers into the malting industry.
Once-off costs were also incurred as a result of the downsizing of the U.K.
business. Notwithstanding this, the outlook for 2005 is more positive as a
result of an increased focus on productivity.
Associate company Namfish (34.5% held by Sea Harvest) experienced difficult
fishing conditions and recorded an increased loss for the year.
REVIEW OF OPERATIONS
FMCG (DOMESTIC FOOD AND CONSUMER HEALTHCARE)
There were some exceptionally strong performances within FMCG, with operating
income increasing by 27% on revenue growth of 9%..
The Domestic Food operations increased operating income by 29% on an 8% increase
in revenue.
In the milling and baking operations, Albany enjoyed another good year
benefiting from the success of its differentiated Superior loaf. This was
further enhanced by the launch of its Best of Both product during the year. The
wheat milling business benefited from a reduction in raw material procurement
costs and from increased operating efficiencies.
The maize milling operations did well to increase profits in an environment of
price deflation. Jungle Oats performed strongly, benefiting from good growth in
its existing product range and from the successful launch of its Jungle Energy
Crunch breakfast cereal. A strong profit improvement was achieved in the rice
category (Tastic) through market growth at the expense of traditional
carbohydrates and through a reduction in the cost of imported rice. King Foods
performed strongly, benefiting from continuing growth in its Morvite product
range and from improved factory efficiencies.
Groceries performed well, increasing operating income by 25%. The fruit &
vegetables category (Koo) benefited from strong volume growth in baked beans.
The spreads business performed well although peanut butter (Black Cat) margins
suffered as a result of an uncompetitive nut procurement position. Condiments &
ingredients (All Gold, Colmans) enjoyed the benefits of strong volume growth in
All Gold tomato sauce. The pasta (Fatti`s & Moni`s) business recorded
disappointing results as house brands and imported pasta products eroded volumes
and margins. The outlook for pasta in 2005 is more positive as a result of an
improved position on imported durum wheat.
Snacks & Treats` (Beacon) operating income was sharply down on the previous
year. Whereas chocolate confectionery performed creditably, the profitability
of the sugar confectionery category continues to be adversely affected by
competing products imported primarily from South America. The importation of
sugar-based confectionery products from countries where sugar is subsidised,
together with the difficulties being experienced by government in enforcing
existing tariff structures, continues to challenge the sugar confectionery
industry in South Africa. The results for the year were also negatively
impacted by the absorption of R20 million of retrenchment costs relating to the
restructuring of the business in the second half of the year.
Perishables (Enterprise and DairyBelle) achieved a strong increase in operating
income, partly influenced by the full year inclusion of Enterprise for the first
time. Enterprise achieved excellent results, enjoying particularly good growth
in its polony and vienna volumes. Production costs fell as a result of the
combined impact of process improvements, a change in sales mix, and the stronger
Rand which reduced the cost of imported raw materials. DairyBelle`s profit
contribution was marginally ahead of the previous year. Although the value-
added sector of the business recorded good volume growth, this did not translate
into improved profitability as a result of depressed pricing in UHT milk and the
impact of milk surpluses on the bulk cheese market.
Consumer Healthcare recorded a 20% increase in operating income on a 17% revenue
improvement, with OTC Medicines achieving a 16% improvement in operating income
on an 11% revenue increase. This category covers unscheduled wellness products
as well as schedule O and 1 medicines that are sold primarily through FMCG
channels and retail pharmacies. Growth in unregulated complementary medicines
and restraints imposed by Single Exit Pricing legislation have added to the
competitive challenges faced by this business. However, growth during the year
was driven by the success of innovations in the Bioplus range and Compral, as
well as a strong performance from Citro Soda.
Personal Care recorded disappointing growth in a highly competitive trading
environment. This category operates in the body care, hair care and face care
market segments. In an otherwise difficult year, Lemon Lite was successfully
relaunched. The results were also affected by the impact of Single Exit Pricing
on Schedule 0 medicines which, in particular, restricted the sales of flagship
brand Ingrams Camphor cream. Babycare (Purity, Elizabeth Anne`s) increased
operating income by 45% through the successful introduction of new products and
through greater segmentation and differentiation within the wider childcare
market.
Homecare (Doom, Fastkill, Jeyes, Airoma) performed well increasing operating
income by 25%. The results reflect the successful integration of the Robertsons
business, the benefits of a good insecticide season assisted by late rains, as
well as the successful relaunch of the Jeyes, Doom and Airoma ranges.
Regulated Healthcare
Regulated Healthcare comprises branded and generic medicines. The year was
dominated by the introduction of Single Exit Pricing in the healthcare industry
through amendments to the Medicines and Regulated Substances Control Act. A
strong performance by generic medicines saw Regulated Healthcare`s operating
income increase by 20% on a revenue improvement of 21%.
Branded medicines increased operating income by 11% on revenue growth of 14%.
Key brands in this category include Myprodol, Lentogesic, Syndol and Pynstop.
Revenue growth benefited from the introduction of new products and the
successful integration of the Parke-Med acquisition. The ongoing pressure on
branded medicine pricing from the private and public sectors and the
introduction of Single Exit Pricing contributed to a very challenging year, with
many products reflecting price decreases.
Generic medicines recorded significant growth. This was driven by the
introduction of a large number of new products, including Adco Simvastatin and
Adco Zolpidem. Other key brands include Adco Dol, Alcophyllex and Zetomax.
Still of concern is the ongoing delay in securing new product registrations as a
result of the backlog at the Medicines Control Council.
HOSPITAL PRODUCTS
Hospital Products increased revenue by 3% and operating income by 19%. This
category continues to benefit from the further widening of its product base away
from its core intravenous solutions business, with new product sales accounting
for 20% of total revenue in 2004. Woundcare management and infusion pump
systems were significant contributors to new product sales.
EXPORTS
The Export operations (excluding Fishing) returned a small profit of R15 million
compared to a loss of R78 million in the previous year. The previous year`s
result was adversely affected by the reversal of currency translation profits
initially recognised in 2002 and by currency losses on the conversion of foreign
monetary assets. The ability of Exports to compete internationally has been
affected by the strength of the Rand and, accordingly, it has been necessary
over the past year to review structures and efficiencies in order to improve the
company`s international competitiveness. The results in 2004 benefited from
higher deciduous fruit volumes and improved dollar prices.
SPAR
Spar`s results include the trading revenues and operating income of Nelspruit
Wholesalers which was acquired with effect from 1 November 2003. Subsequent to
the year-end, Spar was successfully unbundled and separately listed on the JSE
Securities Exchange. In terms of the unbundling agreement, Tiger Brands`
shareholders received one Spar share for every Tiger Brands share held on the
record date, being 22 October 2004. Overwhelming support of shareholders was
received for its unbundling and separate listing. As a separately listed
entity, Spar announced its detailed results for the year-ended 30 September 2004
in the press on 17 November 2004, and shareholders` attention is drawn to that
announcement.
FISHING
The company`s fishing interests comprise Sea Harvest (74%) and Oceana (41%).
Sea Harvest`s contribution to operating income was sharply down on the previous
year as profitability was impacted by the combination of a strong Rand, erratic
fishing conditions and a higher proportion of low value, small fish compared to
2003. Given the continued strength of the Rand, 2005 is likely to be another
difficult year for Sea Harvest.
Separately listed Oceana reported a 21% decline in headline earnings per share.
Revenue decreased marginally by 1% whilst operating income declined by 17%. In
a generally difficult year, earnings were adversely affected by lower
international pricing for fish products, poor catching conditions and the
continuing strength of the Rand which depressed export revenues.
The strong Rand exchange rate will continue to affect Oceana`s export earnings
in 2005, whilst midwater pelagic earnings, which were well down in 2004, will
depend largely on supply, and the effect thereof on market prices.
FINAL DIVIDEND
Consistent with the Board`s previously stated intention to reduce, over time,
the company`s dividend cover, a final dividend of 270 cents per share has been
declared. This, together with the interim dividend of 100 cents per share,
brings the total dividend for the year to 370 cents per share, which represents
an increase of 28% on last year`s total dividend. The dividend cover for the
year of 2.5 times compares with last year`s cover of 2.7 and historical cover
levels of 2.8 times.
OUTLOOK
Assisted by the current positive trend in consumer sentiment, domestic growth is
expected to continue in the year ahead. Tiger Brands, with its powerful array of
branded consumer and healthcare products, is well placed to benefit from the
favourable trading outlook. This, together with a continued focus on innovation
and operating efficiencies, is expected to contribute to real earnings growth in
2005.
ANNUAL REPORT
The annual report will be posted in December to certificated shareholders and
those shareholders with dematerialised shares who have requested a copy of the
annual report through their CSDPs. Salient features of the annual report will be
available on the company`s website shortly after the annual report is posted.
For and on behalf of the Board
R A Williams N Dennis
Chairman Chief Executive Officer 18 November 2004
DECLARATION OF ORDINARY DIVIDEND NUMBER 120
Notice is hereby given that a final dividend of 270 cents per ordinary share has
been declared in respect of the year ended 30 September 2004.
In compliance with the requirements of STRATE, the electronic settlement and
custody system used by the JSE Securities Exchange South Africa, the company has
determined the following salient dates for the payment of the dividend:
Last day to trade cum-dividend Friday, 7 January 2005
Shares commence trading ex-dividend Monday, 10 January 2005
Record date Friday, 14 January 2005
Payment of dividend Monday, 17 January 2005
Shareholders in respect of the South African register will not be permitted to
dematerialise or rematerialise their shares between Monday, 10 January 2005 and
Friday, 14 January 2005, both days inclusive.
By order of the board
I W M Isdale Sandton
Secretary 18 November 2004
REGISTERED OFFICE:
3010 William Nicol Drive, Bryanston, Sandton
Postal address: PO Box 78056, Sandton, 2146, South Africa
SHARE REGISTRARS:
Computershare Investor Services 2004 (Pty) Limited
70 Marshall Street, Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107, South Africa)
Telephone: (011) 370-5000
WEBSITE ADDRESS:
http://www.tigerbrands.com
DIRECTORS:
Independent directors:
R A Williams (Chairman), B H Adams, D D B Band, S L Botha, B P Connellan, U P T
Johnson, A C Nissen, G N Padayachee, B L Sibiya,
J L van den Berg, L C van Vught
Executive:
N Dennis (Chief Executive Officer) (British), M H Franklin, J H McBain
(British), M C Norris, R V Smither, C F H Vaux
COMPANY SECRETARY:
I W M Isdale
Date: 18/11/2004 04:06:55 PM
Produced by the JSE SENS Department
