Tiger Brands Limited - Trading Update And Results Of Annual General Meeting
Tiger Brands Limited
Share Code: TBS
ISIN Code: ZAE000023560
(`Tiger Brands`, or `the Company`)
TRADING UPDATE AND RESULTS OF ANNUAL GENERAL MEETING
During the proceedings of the Tiger Brands Annual General Meeting held today, 22
February 2005, the Chairman issued the following trading update: Tiger Brands
experienced strong trading conditions in the first quarter of the current
financial year. This high level of activity has reduced since then.
Notwithstanding the relative slowdown which has taken place, the trading
performance to date reflects the benefits of Tiger`s wide basket of leading food
and health brands.
The current trading climate has focused the company`s attention on the
challenges of operating in a low inflationary environment. Particular attention
continues to be given to driving synergies across food and health where
appropriate.
Good volume and profit growth has been achieved in the groceries and rice
businesses. The milling and baking operations have performed well, with strong
results from the flour, baking and sorghum businesses being offset by a
disappointing performance from maize milling which operates in a highly
competitive and largely undifferentiated market.
The ability to grow FMCG exports is still hampered by the strength of the South
African Rand.
The fishing operations have continued to perform poorly as a consequence of
unfavourable fishing conditions and catch rates. In addition, the sustained
strength of the South African Rand has had an equally debilitating effect on
export realisations. As a consequence, profits from fishing are well below the
previous year.
Consumer health has benefited from growth in sales volumes, with the babycare
and homecare categories showing strong results. Notwithstanding pricing
pressures, regulated health has performed well on the back of good volume growth
enjoyed by most of the leading brands. The growth in sales and profitability in
generic medicines is particularly pleasing.
The company recently announced the cumulative repurchase of 3% of its issued
share capital by a wholly-owned subsidiary, at a cost of approximately R472
million. Of this amount, R237 million related to share repurchases implemented
since the September 2004 financial year-end. These shares are held as treasury
stock and were purchased in terms of the share repurchase programme authorised
by shareholders at the annual general meeting of the company in February 2004.
Pursuant to the approval of shareholders received at today`s annual general
meeting, it is intended to recommence the general repurchase of the company`s
shares upon such terms and conditions as the directors may from time to time
decide, subject to the provisions of the Companies Act and the Listings
Requirements of the JSE.
The trading outlook for the remainder of 2005 remains positive, with real
earnings growth anticipated for the full financial year ending 30 September
2005.
Shareholders are advised that all resolutions, as proposed in the notice of the
annual general meeting were approved by members and passed with the requisite
majorities at the annual general meeting held today, Wednesday, 22 February
2005.
22 February 2005
Sandton
Sponsor
JP Morgan
Date: 22/02/2005 04:23:02 PM
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