South Africa’s Tiger Brands logo is pictured at a new peanut butter manufacturing facility in Krugersdorp, West of Johannesburg, South Africa April 12, 2024. REUTERS
JOHANNESBURG, Nov 26 (Reuters) – South Africa’s Tiger Brands reported a 31% rise in full-year earnings on Wednesday, driven by strong volume growth and improved operating margins despite muted consumer spending.
The owner of Jungle Oats and Koo baked beans said its headline earnings per share from continuing operations, a key profit measure in South Africa, rose to 21.41 rand ($1.25) in the year ended September 30, up from a restated 16.31 rand a year earlier.
Group revenue increased 2.7% to 34.4 billion rand, lifted by volume growth of 3.5% and softer pricing, as households remained under pressure, the company said.
“Despite food and non-alcoholic beverages inflation moderating to 4.5% in September, household budgets remain strained as the increase in other essential costs impacts disposable income, and consumers have to make trade-offs,” Group CEO Tjaart Kruger said in a statement.
“Our strategy is focused on providing value for consumers.”
The country’s biggest food producer, which also sells the Purity brand of baby food, said second-half volumes grew 5.7%. Milling and Baking revenue was up 5.3% on volume growth of 7.9% and lower wheat prices.
The operating income surged 35% to 3.8 billion rand, supported by topline growth and continuous improvement initiatives such as value engineering and factory efficiencies.
This lifted the company’s double-digit operating margin to 11.1%, up 2.6% from the previous year and also ahead of its guidance.
Reporting by Siyanda Mthethwa; Editing by Christopher Cushing
