| Thu 23 Feb 2006, 14:57 | | Tiger Brands Limited - Trading Statement |
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TBS
TIIH
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
("Tiger Brands" or "the company")
TRADING STATEMENT
Year to date performance
The company has produced pleasing results for the first four months of the
current financial year. These have been achieved on the back of strong demand
for its branded food and healthcare products, particularly in the first quarter.
The Pharmaceuticals, Groceries, Snacks & Treats, Consumer Healthcare and Dairy
businesses have performed well. Oceana achieved an improved performance
notwithstanding poor fishing conditions experienced by the canned fish and fish
meal operations. Maize milling continued to disappoint in the face of difficult
market conditions.
This good performance has been partly offset by poor results from Deciduous
Fruit and Sea Harvest, as well as a slowing down in the growth trend subsequent
to Christmas. Deciduous Fruit felt the effects of lower international selling
prices for its products and the strength of the Rand relative to the US dollar
and Euro. Sea Harvest was negatively affected by the strength of the Rand and
the difficult fishing conditions.
Half-year outlook
The Board of directors of Tiger Brands has considered the forecast results for
the six months ending 31 March 2006. These results comprise the actual
performance for the first four months to 31 January 2006 and the estimated
results for the remaining period to 31 March 2006.
Subject to there being no material unforeseen events, headline earnings per
share for the six months ending 31 March 2006 are expected to show an increase
of between 20% and 25% compared to the corresponding period in the previous
year. Earnings per share for the six months ending 31 March 2006 are expected
to show an increase of between 65% and 80% compared to the same period last
year.
The difference in the expected growth rates at the "headline earnings per share"
and "earnings per share" levels, arises from the exclusion from headline
earnings, in 2006, of the abnormal profit of R337 million relating to the
international disposals referred to hereunder.
The forecast financial information on which this Trading Statement is based, has
not been reviewed or reported on by the company"s auditors.
Shareholders are advised that the expected growth rates reflected above should
not be interpreted as giving an indication of earnings growth for the full year
to 30 September 2006.
International disposals
Shareholders were advised through SENS on 9 February 2006 that the company had
concluded the following transactions:
*The disposal of the company"s 19.7% interest in Pescanova SA of Spain through
the sale of the entire issued share capital of Tiger Brands" subsidiary company
ICS Holdings Limited. The investment in Pescanova SA represented the sole
remaining asset of ICS Holdings.
*The disposal of the company"s 35% interest in Cag-Tech Mauritius Limited
through which Tiger Brands held an effective 17% interest in Agro-Tech Foods
Limited of India.
These disposals are in line with the company"s strategic objective, of, where
appropriate, owning the majority of the shares in and exercising management
control over its international interests.
As previously advised, the above transactions generated, in the aggregate, cash
proceeds of approximately R383 million which have been applied to reduce group
borrowings.
The disposals have resulted in the realisation of previously accrued fair value
gains which were, in prior periods, accounted for as a separate component of
equity. The realisation of these gains will now be accounted for through the
income statement, resulting in an abnormal profit of approximately R337 million
in the current financial year.
Change in executive director"s responsibilities
Mike Norris, an executive director of Tiger Brands, will relocate to Cape Town
as Managing Director of Sea Harvest with effect from 1 April 2006. This follows
the retirement of Louis Penzhorn, the current Managing Director of Sea Harvest,
at the end of March. Mike Norris remains an executive director and retains his
overall group responsibilities for procurement, manufacturing and logistics. He
will relinquish his responsibilities for the company"s healthcare portfolio
which will be assumed by Jonathan Louw who is currently responsible for the
company"s Pharmaceuticals business.
Appointment of Chairman and Deputy Chairman
As shareholders have previously been advised, Robbie Williams retires as a
director and Chairman of the company at the conclusion of today"s annual general
meeting of shareholders. Lex van Vught has been appointed Chairman of the
company and Bheki Sibiya the Deputy Chairman. The Board has expressed its
sincere appreciation to Robbie Williams for the significant contribution he has
made to the company over many years both as a director and as Chairman.
Bryanston
Date: 23 February 2006
Sponsor
J.P. Morgan Equities Limited
Date: 23/02/2006 02:57:51 PM Produced by the JSE SENS Department
