Tiger Brands gets inflationary lift

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Tiger Brands gets inflationary lift

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Published Date: 2019-02-21 | Source: Stephen Gunnion | Author: Stephen Gunnion

Tiger Brands gets inflationary lift

The branded foods group said ys it's benefitted from selling price category in a number of categories but hasn't been able to recover cost increases.

Tiger Brands has grown revenue by 1% in the four months to end-January as it raised prices by an average 2% and grew volumes by 6%. However, while the branded food producer recorded selling price inflation in all categories apart from sorghum-based products, pasta, maize and rice, it wasn't enough to recover higher input costs. And this has affected its profit margins.

In a trading update, Tiger said the re-launch of its Value Added Meat Products (VAMP) business, closed after last year's outbreak of listeriosis, was well received by customers and consumers. However, challenges in restarting the factories that were shut meant it was unable to fully meet demand over the fourth months. Excluding VAMP, it said revenue from continuing operations was 8% higher.

Following its decision to sell a part of its stake in fishing group Oceana and unbundle the rest, it said it had ceased to equity account Oceana's earnings from last December.

The group said it had yet to receive a summons from lawyers representing a class action lawsuit following the deaths and illness from listeriosis after the High Court granted an order certifying the four classes of claimants in the suit. It said it had product liability insurance cover, which had been confirmed by its insurers.

Its shares rose 5.3% to R279.75 yesterday.





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