COMPANIES: Tiger Brands tells a financial tale of two halves in one year

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CEO Noel Doyle says despite tough trading conditions and spending the first half of the year in the doldrums, the company reported a 10% increase in total revenue to R34-billion.

It was the best of times, it was the worst of times… Tiger Brands chief executive Noel Doyle said the year to September was a year of two halves for South Africa’s largest food company. Its performance in the second half of the year helped pull it out of the doldrums, with the company managing a 10% increase in total revenue to R34-billion.

The second half of the year, however, saw significant growth despite a continuation of the cost and supply challenges, exacerbated by prolonged periods of rolling blackouts. Doyle said revenue growth was driven by price inflation of 11% and a marginal overall volume decline of 1%. Net financing costs for the year amounted to R75-million compared with R54-million last year, due to higher average debt levels and higher interest rates compared with the year before.

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