South Africa’s (SA) 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 SA, rose to $1.25 in the year ended September 30, up from a restated 16.31 rand a year earlier.
Group revenue increased 2.7% 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 Chief Executive Officer 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.
–Reuters–
