Tiger Brands Limited

Tiger did not provide a single consolidated revenue or EPS figure in the spoken remarks, but management highlighted cash conversion of 90%, volume growth of 3.5% or 5.8% excluding discontinued SKUs, and an operating margin of 11.1% for the year. Thushen Govender said the HEPS gap from portfolio simplification has largely been filled, with the FY25 adjusted continuing HEPS gap reduced to 1.8% after removing the Carozzi effect and accounting for buybacks. On cash returns, he cited ZAR 8.3 billion in dividends and said total capital returned to shareholders was about ZAR 10 billion. Looking ahead, management reset guidance to 1% to 3% volume growth in the medium term, 4% to 6% longer term, operating margin toward 12% medium term and 15% longer term, working capital at 65 days, and gearing around 33% or 1x EBITDA over time.

Tjaart Kruger’s message was that Tiger has “turned the corner” and reset the organization around a simpler, more efficient, more consumer-relevant model. He emphasized cost leadership, supply-chain control, sustainable sourcing, and brand revitalization, saying the company must manage the full value chain and stay affordable for a pressured consumer. His tone was upbeat and highly confident, but he also stressed that there is still “a lot of runway” left in the next few years.

Thushen Govender focused on execution against efficiency and capital plans. He said continuous improvement commitments were delivered in one year rather than two, and the company is adding another ZAR 500 million target over the next two-year period; he also pointed to a record year of cash generation, ZAR 8.3 billion in dividends, and a reduction in dividend cover from 1.75 to 1.25. He highlighted capital projects including a Mega DC targeted for October 2027 or just before, a super bakery due late next year, and an ongoing push to optimize manufacturing footprint, logistics, and working capital through SAP IBP and the federated operating model.

Analysts focused on the super bakery and Paarl mega site. In response, management said the super bakery is justified on replacing old capacity with much more efficient, lower-cost capacity, with benefits from automation and quality, but it will also create more complex distribution and won’t directly deliver to customers. On Paarl, management said the site is attractive because it is close to raw materials, labor, and the highway, and that more than 50% of the facility’s square-meter utilization is still available for future opportunities.