Tiger Brands full-year revenue up 1% to R37.7bn

Tiger Brands, a leading food producer, has reported a 4% increase in full-year earnings, driven by price adjustments to counter rising input costs and gains from noncore asset sales. Amidst continued pressure on consumer spending, the company remains upbeat about sustaining growth through cost leadership and strategic marketing efforts. CEO Tjaart Kruger credits the successful turnaround to key initiatives implemented in the organization. The transition to a federated operating model, decentralizing decision-making, and emphasizing cost-saving measures have proven to be pivotal in the company's recent performance. Kruger acknowledges that executing these strategies involved difficult decisions such as restructuring and retrenchment. However, maintaining transparency and communicating the strategic direction effectively helped build trust and support within the organization. The positive investor sentiment, reflected in the share price reaching a five-and-a-half-year high, underscores growing confidence in Tiger Brands' leadership and strategic direction. The company's milling and baking segment experienced a decline of approximately 10% in the past year. Kruger attributes this to competitive pricing pressures within the retail sector. To address this, Tiger Brands has focused on strengthening its bakeries and grains business. By optimizing operations, enhancing channel focus, and improving efficiencies, the company aims to drive growth and regain market competitiveness. The launch of a 'super bakery' initiative in Gauteng is poised to elevate Tiger Brands' capabilities, setting a new standard in cost efficiency and quality. In discussing the challenges and opportunities in the general trade sector, Kruger emphasizes the importance of agility and efficiency. With a significant presence in township markets, Tiger Brands leverages technology and on-the-ground sales teams to enhance customer engagement and drive sales. By streamlining logistics and optimizing delivery processes, the company aims to enhance service levels and strengthen its position in the general trade segment. Looking ahead, Kruger expresses optimism about the South African region's economic outlook. Favorable macroeconomic indicators, including declining interest rates and a relatively strong rand, bode well for the food industry. With consumer confidence on the rise and a more efficient government administration, Kruger anticipates a positive trend in consumer spending on food products. Despite a competitive market landscape, Tiger Brands is prepared to navigate challenges and capitalize on emerging opportunities. In conclusion, the company's strategic focus on operational efficiency, cost containment, and market expansion positions Tiger Brands for sustained growth and competitiveness in the evolving food industry landscape.