South African packaged Goods Company’s headline earnings per share rose from 1,628 cents in 2013 to 1,815 in 2014.
The group said it achieved a solid set of results in a difficult trading environment, overcoming a disappointing first-half performance to grow operating income by 15 per cent for the full year.
(READ MORE: Tiger Brands faces growing competition in Africa)
“Headline earnings per share from continuing operations increased by 15 per cent to 1 804 cents. However, earnings per share from continuing operations declined by 21 per cent to 1 243 cents, largely due to impairments relating to the group’s investment in Dangote Flour Mills,” said the group in a statement.
[DATA TBS:Tiger Brands Limited] reported a group turnover increase of 11 per cent to 30 billion rand, underpinned by four per cent volume growth and below inflationary pricing of five per cent.
“Currency movements added a further two per cent growth to turnover. Operating income increased by 15 per cent to 3.6 billion rand, with the group’s overall operating margin improving from 11.4 per cent to 11.8 per cent.”
The group also reported domestic businesses growing operating income by seven per cent to 3.3 billion rand.
“Whilst this performance was negatively affected by a nine per cent decline in the Home Care, Personal Care and Baby business, operating income from the domestic food businesses increased by 12 per cent to 2.9 billion rand.”
Tiger Brands said its exports and international businesses, excluding Nigeria, continued to reflect pleasing growth, increasing turnover by 16 per cent to 4.6 billion rand and operating income by 20 per cent to 691 million rand.
“Significant progress has been made in addressing the challenges in DFM and, as a result, the net reported loss before interest and tax for the Nigerian businesses improved by 27 per cent to 282 million rand from 384 million rand in 2013,” added the company.
“As indicated at the half year, DFM has now conducted a review of the utilisation levels of its assets and, based on current market realities, has decided to impair certain of these manufacturing assets.”
(READ MORE: Tiger Brands looking to enhance DFM prospects)
The group said the related impairment, amounting to 105 million rand, is in addition to the 849 million rand impairment of goodwill and other intangibles recognised at the half year.
“Tiger Brands remains committed to the Nigerian market and will continue to fix and optimise the DFM business, whilst investing into adjacent categories that are expected to deliver long-term profitable growth,” added the group.
The group expects to sustain the positive momentum that was achieved during the year under review, despite a continued difficult trading environment in both the domestic and international businesses.