Tiger Brands (TBS) H2 2024 earnings summary

Executive summary

• Achieved a strong turnaround and positive momentum in H2 FY2024, with improved operational performance and cash conversion after a challenging first half.

• Strategic focus shifted to Southern Africa, with portfolio optimization through disposal of non-core brands and businesses.

• Emphasis on cost leadership, channel presence, and consumer-centricity, with significant investments in technology and supply chain optimization.

• E-commerce grew 54% year-over-year, expanding reach to 91,000 stores and targeting 150,000 in the next year; recognized for digital and employer excellence.

• 19% of revenue generated outside South Africa, with Chococam driving international performance.

Financial highlights

• FY24 revenue grew 1% to R37.7bn, driven by price inflation, with volumes down 5.9% year-over-year.

• Operating income up 1% to R3.14bn; operating margin flat at 8.3%; EPS from continuing operations rose 0.8% to 1,877cps.

• Cash generated from operations up 104% to R5.5bn; net cash position of R1.3bn at year-end, reversing prior year net debt.

• Dividend cover maintained at 1.75x HEPS, with potential for special dividends or share buybacks.

• Associates, especially Carozzi, delivered robust results, up 18% year-over-year.

Outlook and guidance

• FY25 guidance: volume growth of 1–3%, high single-digit operating margin, and capex of R1.2–1.5bn.

• Aiming for operating margins above 10% and ROIC of 20% in the next few years.

• Portfolio optimization and SKU rationalization to continue, with further disposals planned.

• Dividend cover set at 1.75x full-year HEPS; share buy-back authority in place for excess cash.