• Headline earnings per share from continuing operations  to decline by 5% to 15%
  • Earnings per share from continuing operations to be 15% to 25% higher than full year 2020
  • Value Added Meat products were treated as discontinued operations 

Harare – JSE listed, Tiger Brands Limited expects a decline of between 5% and 15% in headline earnings per share (HEPS) from continuing operations for the year ended 30 September 2021 as the effects of the civil unrest that took place in July 2021 as well as the canned vegetable recall sinks.

In a trading update, Tiger Brands which is South Africa’s biggest manufacturer and is the owners of Oros, Koo and Jungle oats said HEPS from continuing operations are projected to be between 60 cents and 179 cents, lower than the 1 196 cents reported in the full year 2020. This is a fall of up to R340 million.

“The write-off of assets plus stock losses related to the civil unrest amounted to approximately R100 million (pre-tax), whilst the adverse financial impact of the recall totalled R647 million (pre-tax). The after-tax impact of the stock losses, together with the impact of the recall, is estimated to be in the region of 318 cents per share,” the Company added.

The Company’s shares responded by falling on the JSE with a recorded decline of 2.35% as of 26 October 2021, 12 noon.

Tiger Brands said the write-off of stock related to the civil unrest as well as the recall will be accounted for through the cost of sales.

“Refunds related to the recall will be accounted for as a reduction in revenue, whilst other recall-related costs will be accounted for through the relevant expense functions on the income statement,’’ the Company added.

Results for the fiscal year under review are expected to be released on or about 19 November 2021.

Tiger Brands holds a 37% stake in Zimbabwe Stock Exchange (ZSE) – listed National Foods Limited.

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