Tiger Brands reports decline in first-half revenue

Reading Time: < 1 minute

Local food manufacturer Tiger Brands says consumers remain constrained and selective with how they spend. The company announced its results for the six months ending March 31 this year.

It posted lower first-half performance with revenue dropping by 1% to R19.2 billion.

The grains business including milling and baking was the primary source of the negative performance. The company says it was impacted by higher raw material costs due to adverse weather conditions and the export ban on Indian rice.

“That’s, you know, important to note, although there’s this general view that inflation is coming off in the market, but when you look at the agricultural supply chain as well as the commodity supply chain, we’re not seeing inflation come off, whether it is peanuts, small white beans, tomatoes. In fact, our inflation is averaging, agricultural products outside of commodities, around 16 to 17%, if I look at the second half,” says Tiger Brands CFO Thushen Govender.