Tiger Brands posts US$1.1B revenue, advances restructuring with Beacon asset sale

SOUTH AFRICA – Tiger Brands Limited has reported a mixed but stable set of half-year results for the period ended March 31, 2026, amid pressure from weak consumer spending and competitive trading conditions in South Africa.

The group posted revenue of R17.9 billion (US$1.10B), representing a 1.3% increase from R17.7 billion (US$1.09B) recorded in the same period last year.

Sales volumes rose by 2.6%, though this was partly offset by a 1.3% price decline as the company adjusted pricing to keep products affordable for consumers facing tighter household budgets.

On a comparable basis, excluding discontinued stock-keeping units and divested operations, underlying volumes increased by 4.5%.

Margins and earnings

Gross profit margin improved to 32.1% from 29.8% a year earlier, supported by lower input costs and operational efficiency measures across manufacturing, including production optimisation, recipe adjustments, and packaging changes.

Operating income increased by 26.1% to R2.1 billion (US$129.31M), driven by stronger margins and reduced logistics expenses across the business.

Portfolio changes

Tiger Brands has agreed to sell its Beacon confectionery brand along with related chocolate manufacturing equipment as part of its ongoing plan to simplify its product portfolio and focus on higher-margin categories.

The transaction includes machinery used to produce chocolate slabs, Easter eggs, and assorted confectionery products, marking another step in the company’s divestment programme.

Despite the disposal, the group will retain several confectionery brands, including Nosh, TV Bar, Wonder Bar, Black Cat chocolate products, and Jungle energy bars, which remain part of its snacking strategy.

The company has also completed the sale of its Randfontein maize and wheat milling operations for about R282 million (US$17.3M) and continues to assess additional non-core assets for possible disposal.

Beacon, which has been part of South Africa’s confectionery market for about 95 years, entered Tiger Brands in 1990 with a 50% stake, before securing full ownership in 1998.

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