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

Boost for SA's economy as China lifts its beef ban
07/08/2019 - 09:10
Within one month of the meeting between President Cyril Ramaphosa and President Xi Jinping at the G20, China has announced that it is lifting the ban on South African beef exports to China. This will be a major boost to South Africa’s economy given that China is the largest consuming market for South African beef and related products.

South Africa’s economy ‘doesn’t have a long time’
02/08/2019 - 12:57
South Africa’s outlook has been dealt several heavy blows following Eskom’s financial results, and the latest unemployment data, which has raised the question: where to from here?

JIT is key to optimising the FMCG supply chain
23/07/2019 - 19:12
The ability to manufacture ‘just enough’ stock to cover orders and deliver ‘just enough’ product to every retailer is the optimal supply chain scenario in the Fast-Moving Consumer Goods (FMCG) industry. This is known as Just in Time (JIT) manufacturing and delivery.

To drive consumer behaviour, you need to address the entire supply chain
03/07/2019 - 08:33
Changing consumer behaviour and creating loyalty throughout the supply chain are areas every FMCG manufacturer is trying to achieve.

Inducing consumer paralysis: how retailers bury customers in an avalanche of choice
01/07/2019 - 10:35
Do you think you are paying more than you should for energy, banking, insurance, internet, and phone services? You are not alone, and you are probably right.