Tiger Brands FY profit up after Nigeria sale

Tiger Brands, a leading food producer, has had an eventful week with the release of their earnings report. The company's insect repellent spray, Doom, has garnered negative attention due to reports of its controversial use by a self-proclaimed South African Prophet, Lethebo Rabalago, on his followers. Despite the distraction caused by this misuse of their product, Tiger Brands CEO Lawrence MacDoodle and Chief Financial Officer Noel Doyle recently sat down with CNBC Africa to discuss the company's financial performance. The executives highlighted several key points during the interview. First and foremost, they addressed the misuse of Doom and emphasized the importance of consumer education and brand reputation. MacDoodle expressed regret over the situation and urged consumers to use the product responsibly, highlighting the health risks associated with misuse. He also called for regulatory action to prevent such incidents in the future. Moving on to the financial results, MacDoodle highlighted a positive trend in the company's performance. He noted that volumes were up by 1%, revenues increased by 11%, and profits grew by 5%. Despite economic challenges, Tiger Brands demonstrated resilience and strong growth, showcasing the strength of their brands across various income groups in South Africa. Doyle added that inflation remains a top concern for the company, primarily driven by cost pressures resulting from the drought. He mentioned that managing these challenges and cost containment are essential strategies for Tiger Brands to navigate the current economic environment successfully. Looking ahead, both executives stressed the importance of a consumer-centric approach and a cost-conscious mindset in driving future growth. They highlighted the company's focus on understanding changing consumer behaviors and ensuring affordability of their products amidst rising inflation rates. Additionally, Tiger Brands plans to explore new growth opportunities not only locally but also internationally, reaffirming its commitment to expansion and market diversification. Overall, the interview provided valuable insights into Tiger Brands' strategic outlook and financial performance, showcasing a company that is poised for continued growth despite recent challenges.