Tiger Brands reported a 10% increase in revenue for the 2023 financial year, but lower sales volumes saw the company’s profit fall by over 5%.
The company – which owns brands such as Jungle, Purity, Koo and Black Cat – released its results for the year ended September 2023 today.
Revenue increased by 10% to R37.4 billion, compared to R34 billion in 2022.
However, the company’s cost of sales grew by 14% to R27.05 billion.
The company’s basic earnings per share fell slightly by 2.13% to 1,724.7 cents per share, while headline earnings per share grew by 1.8% to 1,734.7 cents.
Tiger Brands said its results for the year reflect the challenging trading environment marked by high food inflation, cost-conscious consumers continuing to trade out of premium products, rand depreciation, and unreliable electricity supply.
“Despite double-digit inflation across the portfolio, the impact on group volumes was minimal,” the company said.
Despite these mixed results, Tiger Brands upped its final ordinary dividend to 671 cents per share, bringing its full-year dividend to 991 cents per share.
The company also announced today that its chief financial officer, Deepa Sita, will step down on 31 December 2023.
Sita will be replaced by Thushen Govender with effect from 1 January 2024.
Govender is a Chartered Accountant and registered member of SAICA with an MBA from Henley Management College.
He has a track record within Tiger Brands and is a seasoned FMCG executive with leadership experience across various geographies.
He re-joined Tiger Brands in 2021 from Aspen Holdings Limited, where he was Group Commercial Officer for international markets including Russia, USA and China.
This follows Tiger Brands’ former CEO Noel Doyle stepping down in November of this year, which saw the company’s shares soar by around 16% following the announcement.
Doyle was replaced by Tjaart Kruger, the former CEO of Premier Foods, who has been appointed on a 26-month contract to lead the company.