JOHANNESBURG (Reuters) -South Africa’s Tiger Brands expects an up to 15% rise in annual headline earnings, as improved operating margins and cost-cutting offset pressure on consumer spending and commodity price deflation.
The country’s biggest food producer said on Monday it anticipates headline earnings per share (HEPS) from total operations to increase by 10% to 15%, or between 19.91 rand and 20.82 rand ($1.15 and $1.20), compared with 18.10 rand a year earlier.
From continuing operations, HEPS is expected to rise 25% to 30%, the company said in a trading statement.
Tiger Brands shares were up 2.98% by 1145 GMT.
The company attributed the performance to core revenue growth and efficiency initiatives such as better pricing, and factory and logistics improvements, which drove double-digit operating margin from continuing operations.
Volume growth is expected across most units, with milling and baking, grains and home care showing notable recovery in the second half of the year.
The Johannesburg-listed group has also advanced its “portfolio optimisation” strategy, completing the sale of Langeberg and Ashton Foods and signinjg a deal to dispose of its 74.69% stake in Cameroonian confectionery maker Chococam to Africa-focused investment firm Minkama Capital and BGFIBank Group.
The transaction is expected to close in the second half of fiscal year 2026, the company said.
Tiger Brands said the disposals, including the earlier sales of its stake in Carozzi unit Empresas Carozzi and its baby wellbeing division, align with its strategy to focus on core categories where it has a competitive advantage.
($1 = 17.3125 rand)
(Reporting by Nqobile Dludla; Editing by Joe Bavier)
