Tiger Brands’ share price soars to 7-year high
Tiger Brands attributed this growth to its continued focus on delivering value for consumers, executing key strategic priorities, and enhancing efficiency through logistics optimization and value engineering.
SOUTH AFRICA – Tiger Brands’ share price surged to a seven-year high after the company announced an increase in its interim dividend and introduced a special dividend following a 34% rise in profit.
The stock climbed as much as 6.2%, reaching its highest point since May 2018 on the Johannesburg Stock Exchange (JSE).
The company reported that its headline earnings per share from continuing operations rose by 34% to R10.21 (US$0.57) for the six months ending March 31, compared to 7.63 cents for the same period last year.
Overall revenue increased by 2% year-on-year, totaling R18.5 billion (US$1B), driven by a 2.1% rise in price inflation, while sales volume remained relatively flat.
On a like-for-like basis, which excludes the effects of discontinued divisions or products, underlying volumes grew by 2.6% in the first half of the year, with price inflation at 1.4%.
The volume growth was propelled by intentional recovery efforts in the Culinary Business Unit, along with significant gains in Milling, Baking, Snacks, Treats, and Beverages.
The group declared an interim ordinary dividend of R4.15 (US$0.23) per share, marking a 19% increase, in addition to a special dividend of R12.16 cents per share for the same period.
Despite this positive performance, income from associates fell by 15% to R337 million (US$18M), primarily due to the conclusion of the Empresas Carozzi SA disposal in February 2025.
Tiger Brands emphasized that heightened market competition and the rising presence of regional millers in the maize market have diminished the maize category’s importance for its future.
As a response, the company has entered into a sale agreement with an unnamed buyer for its maize milling business and its wheat mill located in Randfontein, west of Johannesburg.
“The maize business will be sold along with the wheat mill to streamline and expedite the transaction, as both operations are situated on the same manufacturing site. Disposing of the wheat mill will help optimize Tiger Brands’ wheat milling footprint and enhance conversion costs,” the company stated.
Earlier this month, Tiger Brands announced the sale of Langeberg & Ashton Foods (LAF) to a consortium of local fruit producers and partners for R1 after determining that its commercial viability and sustainability could not be assured.
The success of this sale is expected to benefit the deciduous fruit industry and improve the livelihoods of Langeberg and Ashton Foods employees, as well as the surrounding communities.
“In shaping our future portfolio, we have carefully considered and conducted in-depth analyses of strategic and financial fits, competitive positioning, and the evolving consumer and macroeconomic landscape. This has helped us identify the categories in which Tiger Brands has a sustainable competitive edge and right to win, as well as those that are no longer deemed core to the future competitiveness of the business,” said CEO Tjaart Kruger.
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