SA's largest food producer Tiger Brands said on Thursday that its financial performance has improved, supported by strong revenue growth in the first quarter.
The food group released its results for the six months ended 31 March on Thursday and said the board has approved and declared an interim ordinary dividend for the six months ended 31 March.
Previously, the owner of popular brands such as Jungle Oats, Albany bread and Tastic had not declared an interim dividend in respect of the 2020 half-year results given the uncertainty at the time over Covid-19 lockdown measures.
Tiger Brands said its total revenue from continuing operations increased by 8% to R16.4 billion underpinned by price inflation of 9% while half-year profits rose by 21%.
"To this end, the ongoing cost-saving initiatives and successes achieved to date in extracting further supply chain efficiencies will be intensified, whilst initiatives to grow the top line will be prioritized," said the group.
Tiger Brands sold its value-added meat products business, Enterprise, to poultry company Country Bird Holdings in August 2020. Tiger Brands said the value-added meat products business has been treated as a discontinued operation, with the comparative information restated accordingly.
The group is still facing a class-action lawsuit related to the listeriosis outbreak. "Tiger Brands awaits the allocation of a hearing date by the Supreme Court of Appeal (SCA) regarding the request by the company for third parties to provide epidemiological information required for the class action lawsuit," the group said
Group operating income before impairments, abnormal items and accounting charges rose by 16% to R1.6 billion, while operating margin, also before those items, rose to 9.6%. Headline earnings per share from continuing operations rose to 741 cents in the six months to March 31 compared with 613 cents a year earlier.