Tiger Brands annual earnings jump 31% as revenue tops US$2B

SOUTH AFRICA – Tiger Brands, South Africa’s leading food company, recorded a 31% rise in full-year earnings, driven by higher sales volumes and improved operating margins, despite a sluggish consumer spending environment.

The company, which owns brands including Jungle Oats and Koo baked beans, reported headline earnings per share from continuing operations of 21.41 rand (US$1.25) for the year ended September 30, up from a restated 16.31 rand (US$0.95) in the previous period.

Group revenue increased 2.7% to 34.4 billion rand (US$2.01 billion), representing a 3.5% growth in volumes alongside moderated pricing as household budgets remained constrained, the company stated.

CEO Tjaart Kruger noted that while inflation for food and non-alcoholic beverages had eased to 4.5% in September, rising costs of other essentials continued to pressure disposable income, influencing consumer purchasing decisions.

Second-half volumes expanded 5.7%, while Milling and Baking revenue climbed 5.3%, supported by a 7.9% volume increase and a reduction in wheat prices, the company said.

Operating income rose 35% to 3.8 billion rand (US$222 million), aided by top-line growth and initiatives such as value engineering and factory efficiency improvements.

The firm’s operating margin reached 11.1%, up 2.6 percentage points from the prior year and exceeding management’s guidance, reflecting the gains from cost management and productivity enhancements.

Tiger Brands declared a special final dividend of 27.10 rand (US$1.58) per share, a significant rise from 6.84 rand (US$0.40) in the prior year, signaling stronger cash generation.

In international developments, Tiger Brands is advancing its exit from Cameroon, agreeing to sell its 74.69% stake in Chocolaterie Confiserie Camerounaise to Minkama Capital for approximately US$76 million, pending regulatory approval and standard closing procedures.

The transaction will be financed through a syndicated loan arranged by BGFIBank Group, indicating continued investor interest in African consumer goods operations despite the lack of full valuation disclosure.

Tiger Brands confirmed it is evaluating options for other international units it no longer considers core to its business, with the Cameroon deal expected to close in the first half of its 2026 financial year.

Speculation has emerged regarding possible involvement from Cadyst Invest, linked to Cameroonian businessman Célestin Tawamba, although neither party has confirmed this, while earlier reports suggested a bid valuing Chococam at roughly US$97 million had been considered.

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