Advertise with fastmoving.co.za
 
 

Fast moving consumer goods group says meaningful recovery depends on an improvement in the consumer environment.
Fast moving consumer goods group says meaningful recovery depends on an improvement in the consumer environment.

Tiger Brands’ shares fall after it warns of declining revenue

RETAILER NEWS

By Robert Laing - Feb 21st 2018, 11:06

Fast moving consumer goods group says meaningful recovery depends on an improvement in the consumer environment. 

Tiger Brands’ share price fell 8.5% to R412.50 on Wednesday after it warned shareholders revenue was suffering from lower prices and demand.

Revenue for the four months to end-January declined 5% from the corresponding period a year earlier, Tiger Brands said in a trading update.

The fastmoving consumer goods group said this was partly due to overall deflation of about 1%, but also the volume of food it sold falling 4%.

Its exports of deciduous fruit had suffered from the stronger rand.

Regarding its chances of growing revenue for the financial year to end-September after a poor start, Tiger Brands said: "Any meaningful recovery remains dependent on an improved consumer environment which may be influenced by measures to be announced in the budget speech later today."

"The decrease in revenue was aggravated by price deflation in some soft commodities and higher levels of discounting in the domestic business as the group seeks to manage its competitiveness on shelf," the trading update said.

"The overall volume decline was driven mainly by the home and personal care categories and exports. Home care’s performance was impacted primarily by lower demand due to a delayed pest season and an unfavourable product mix, whilst personal care was negatively affected by increased competition and overall market contraction."

© BusinessLIVE MMXVIII 

Read more about: tiger brands | | fmcg | trading update

Related News

Tiger Brands to fight against listeriosis class-action lawsuit
17/04/2019 - 13:02
Tiger Brands says it plans to put up a fight in a class-action lawsuit against the company relating to the deadly listeriosis outbreak of 2018.

UK’s Debenhams falls into administration
09/04/2019 - 14:47
Debenhams’ lenders took control of the ailing British retailer after it went into administration, wiping out shareholders including billionaire Mike Ashley in the latest corporate failure on the high street.

Pick n Pay shares rise on annual turnover growth of nearly 10%
09/04/2019 - 09:39
Pick n Pay, one of South Africa’s largest supermarket chains rose after the group reported turnover growth of almost 10 percent in the financial year to the end of March, underscoring the resilience of its South African division, which clawed back market share from competitors.

Dove partners with Getty Images and Girlgaze to launch Project #ShowUs
29/03/2019 - 09:47
Dove has taken action with Getty Images, Girlgaze and women around the world to create Project #ShowUs – the world’s largest stock photo library created by women and non-binary individuals to shatter beauty stereotypes by showing women as they are, not as others believe they should be.

AVI hit by constrained consumer spending
13/03/2019 - 12:42
Food and beverage company AVI Limited felt the pinch of constrained consumer spending as income from its shoe brands Green Cross and Spitz slid in the half year to December, resulting in revenue in the footwear and apparel category declining by 9.2 percent to R1.14billion.