Tiger Brands posts US$1.03B in revenue for H1 2025

SOUTH AFRICA – Tiger Brands has recorded a 1.9% rise in revenue from continuing operations for the six months ending March 31, 2025, with an operating margin improvement to 9.6%, up 2.1 percentage points.

The company generated revenue of US$1.03 billion, of which its core operations accounted for US$929.8 million, while underlying volume growth, excluding discontinued operations, rose by 2.6%.

Its snacks, treats, and beverages division delivered the strongest performance, growing by 6.1%, supported by double-digit increases in sales of Oros and Jungle health bars.

Revenue from the culinary category was up 5.0%, helped by local promotional campaigns and market share gains, though challenges in Mozambique impacted overall growth.

The grain segment remained flat, while the milling and baking business saw a slight 0.4% revenue increase due to price inflation.

However, the home and personal care division saw a 4.8% decline, affected by ongoing pricing pressures, limited innovation in personal care, and supply disruptions in pesticides.

Alongside its financial performance, Tiger Brands has continued disposing of non-core operations, improving its cash flow with the completed sales of businesses like Baby Wellbeing, Carozzi, and its maize operations.

The company has also finalised the sale of its canned fruit unit, Langeberg and Ashton Foods, for US$0.06 as part of its plan to concentrate on domestic operations and key product lines.

Canned fruit unit changes hands

Langeberg and Ashton Foods, which has historically exported 80% of its output to Europe and Asia, will be sold as a going concern to a newly established entity, NewCo.

NewCo comprises The Ashton Fruit Producers Co-operative, a group of growers from the Western Cape region, and an unnamed development finance institution focused on job creation and sustainable development.

Tiger Brands has been seeking a buyer for the fruit canning business since 2020 and will retain a supply arrangement allowing it to continue marketing the products under its KOO brand.

As part of the agreement, Tiger Brands has pledged US$8.3 million to set up a Community Trust, which will own 10% of NewCo and oversee local development projects.

The company will also invest US$1.7 million to upgrade the Ashton plant to meet environmental standards, maintaining employment for more than 3,000 workers.

In parallel, Tiger Brands has reduced its product range by 23% since the previous financial year, as it focuses on core brands and phases out lower-priority categories.

It has also flagged its Chococam subsidiary in Cameroon and King Food business as non-core, with Chococam revenue falling year-on-year due to the stronger South African rand, despite modest volume growth and local currency gains.

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