Tiger sees SA consumers under pressure as costs rise
Fin 24 - Jul 19th 2016, 12:42
Johannesburg - Tiger Brands said the risk of higher inflation will place pressure on South African consumers as the nation’s biggest food producer is raising prices to try to offset cost pressures following record maize prices.
Headline earnings per share from continuing operations, which exclude one-time items, were R9.78 in the six months ended March 31 from T9.75 a year earlier, the Johannesburg-based company said in a statement on Tuesday. Tiger sold its unprofitable Nigerian business to Dangote Industries with effect from February 25, treating this as a discontinued operation. The interim dividend rose 7% to R3.63 per share.
The weak rand and the worst drought in more than a century have boosted South African food costs and threaten to keep inflation outside the South African Reserve Bank’s (Sarb's) 3% to 6% target range for an extended period. There are indications that the pass-through from the exchange rate to inflation is increasing and food-price growth is forecast to climb to about 12% in the third quarter of this year, the Sarb said last week.
“The outlook for the balance of the year remains challenging, with downside risk to the macroeconomic environment, both in South Africa and in a number of African markets, likely to add further pressure on consumers,” Tiger said.
“The key challenge will be to maintain volume momentum notwithstanding price increases that are currently being taken to partially offset the cost pressures.”
Lawrence Mac Dougall, who previously headed Mondelez International’s eastern Europe, Middle East and Africa business, was appointed chief executive officer in March to replace Peter Matlare, who resigned last year after overseeing a R954m writedown related to the company’s Dangote Flour Mills unit in Nigeria that was bought for about $152m in 2012.
The stock fell 0.2% to R337.90 by the close in Johannesburg on Monday, giving the company a market value of R64.9bn. The stock was trading at R333.53, 1.29% down, shortly after 10:00 on TuesdayFrom Fin24
Checkers brings world-class retail to Constantia with new flagship store
27/11/2019 - 13:01
Checkers has opened the doors to its state-of-the-art 2 330 m² flagship supermarket at the Constantia Emporium as the retailer continues to take innovation to new heights.
Woolworths carves out market share in SA
27/11/2019 - 10:11
In Australia, David Jones's sales declined 2.1%, with the company saying a store refurbishment contributed to the decline.
Push and pull strategies work together to keep consumers coming back for more
26/11/2019 - 10:20
The retail sector is under increasing pressure as consumers have shrinking disposable income in a strained economy. Maintaining share of wallet is critical. Relying solely on a push route to market strategy from manufacturers into retailers is not enough to get consumers buying products. A pull strategy needs to coexist with the push to drive brand consumption. Integrating these strategies requires intelligent and insightful decision-making. This, in turn, requires data generated through smart technology which provides line of sight across the value chain from manufacturer to distribution, retailer to the consumer.
Exclusive leases must fall: Commission cracks whip on Shoprite, Pick n pay, Spar, Woolies
26/11/2019 - 09:57
The Competition Commission Inquiry into Grocery Retail, published on Monday, called for an end to the exclusive leases negotiated by national retail chains in all shopping malls across the country in a bid to open up access to markets for smaller players.
Tiger Brands still reeling from listeriosis aftershock
26/11/2019 - 09:41
Tiger Brands continued to feel the effects of the listeriosis outbreak in the year to the end of September after the food producer suffered an impairment charge in its value-added meat products (Vamp), following a slower-than-anticipated recovery in the division.