Tiger Brands head-quarters in Johannesburg. The group reported revenue growth from continuing operations iof 1% for the four months to December 31, 2025. versus prior year, driven by volume growth of 2%, offset by price deflation of 1%.
Image: IOL File
Tiger Brands, producer of branded foods, beverages, home and personal care products, said consumers still faced pressure on essential costs in the four months to January 31, while food inflation also increased again.
The group, which operates 34 manufacturing plants in South Africa, said in an update, however, that their sales volume growth had remained within its guidance to shareholders, and the double-digit operating margin was being maintained. The group had delivered “robust performance," the group directors said.
Revenue from continuing operations increased by 1% versus the prior year, driven by volume growth of 2%, offset by price deflation of 1%.
Adjusted revenue growth, after removing the impact of discontinued stock keeping units (SKUs) and disposed businesses, was 2%, driven by volume growth of 5%, particularly in Culinary and Milling & Baking, offset by price deflation of 3%.
“The consumer environment remains competitive. Domestic inflation for food and non-alcoholic beverages in January 2023 was 4.4% for a third consecutive month, with the bread and cereals category recording 0.6% inflation,” the group said. The food inflation exceeds consumer price inflation (CPI) of 3.5% in January.
Tiger Brands said it was responding to food inflation with “diligent price point management,” aiding the affordability of its products and a reduction in consumer pressure.
Invest in pricing in key categories also continued to drive increased affordability and accessibility of products, leveraging brand equity and benefits from continuous improvement (CI) initiatives.
In addition, the group continued to experience material soft commodity deflation for the period, impacting grains.
Growth was experienced across all Business Units (BUs), apart from the Home and Personal Care (HPC) BU, with Personal Care (PC) experiencing sustained competitor intensity which impacted performance.
The PC turnaround strategy had been implemented, with improved performance expected in the second half.
The gross margin percentage from continuing operations exceeded the prior year, driven by favourable mix and CI initiatives of factory efficiencies and recipe value engineering.
Operating profit from continuing operations improved, with double-digit operating margin driven by margin leverage, as well as logistics optimisation initiatives.
“Consumer recovery is expected, as positive macro-economic indicators signal some reprieve; however, it is anticipated that consumers will continue to seek value,” the directors said.
Areas of focus for the year ahead include that completion of the Chococam transaction and exploration of value from the reshaping of operations, and realisation options for the non-core categories.
Continued market share recovery in general trade for Bakeries would be sought, with growth in the balance of the portfolio.
Progress would be made on key structural investments in the latter part of the calendar year.
Another area of focus was to drive affordability in Culinary and Grains, with the launch of product innovations and a focus on price management.
There would also be continued investment in core brands to maintain brand leadership.
The group is also busy "optimising" its portfolio, with management's focus on deploying capital and resources to areas where Tiger Brands has a competitive advantage.
The Randfontein inland milling operations disposal to Rand Agri Holdings had been completed after the Competition Commission approved the transaction on November 25.
Finalisation of the disposal of the Cameroonian subsidiary, Chocolaterie Confiserie Camerounaise (Chococam), announced on November 11, 2025, remains on track, pending regulatory approvals.
Beacon chocolate and King Foods remain in continuing operations. In parallel, value realisation options were being explored for these divisions.
On the listeriosis class action, the group said it and its insurers wanted a just resolution as soon as possible. Engagements between the legal representatives of the parties were ongoing, with a view to finding a means to bring finality to the class action litigation.
Tiger Brands’ share price fell 0.96% to R332.56 on Thursday morning on the JSE.
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