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: ZAE000023560
TIGER BRANDS LIMITED - TRADING STATEMENT
At the release of the interim results on 18 May 2005, shareholders were advised
that the rate of increase in headline earnings per share (`HEPS`) for the half-
year ended 31 March 2005 (29%) was not expected to be sustained for the full
financial year, although the annual results would still reflect good growth in
real terms.
Based on the results for the year to date and the trading outlook for the
remainder of the year, it is expected that HEPS for the twelve months ending 30
September 2005 will reflect an improvement of between 20% and 30% compared to
that achieved in the previous financial year.
Earnings per share (`EPS`) for the twelve months to 30 September 2005 is
expected to be between 40% and 50% higher than that achieved last year. The
reason for the disparity between the rates of increase in EPS and HEPS is the
reduction in attributable earnings for the prior year, caused by the impairment
in that year of the group`s investment in 50% held associate C & T Malt. The
impairment expense was excluded for the purpose of calculating HEPS in 2004.
Pursuant to the announcement on 14 July 2005 with regard to the proposed staff
empowerment transaction, an after-tax cost of approximately R50 million will be
incurred in the 2005 financial year. This amount has been taken into account in
arriving at the expected increase in HEPS for 2005 of between 20% and 30%, and
primarily relates to the cash grant payable by the Tiger operating subsidiaries
to the Tiger Brands General Staff Trust for the purpose of funding the purchase
price of the Tiger Brands shares to be allocated to qualifying employees (for no
consideration) upon implementation of the scheme. A circular will be sent to
shareholders outlining the details of the empowerment transaction on or about 26
August 2005.
It is expected that the results for the twelve months ending 30 September 2005
will be released on 24 November 2005. The information in this trading statement
has not been reviewed and reported on by the company`s auditors.
Bryanston
17 August 2005
Sponsor
JP Morgan Equities Limited
Date: 17/08/2005 02:38:44 PM
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