Tiger Brands (TBS) H2 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance, with 3.5% volume growth and 2.7% revenue growth, driven by portfolio optimization, cost leadership, and major disposals and SKU rationalization ahead of guidance at 27% versus 20%.

• Returned R10 billion to shareholders through special dividends, share buybacks, and ordinary dividends.

• Sustainability initiatives included agricultural partnerships, 3,000 jobs saved, 1,275 new jobs created, and a 12% reduction in scope 2 GHG emissions.

• Exceeded medium-term guidance targets for volume, revenue, and operating margin.

• Cash conversion improved to 90%, supporting strong dividend payouts.

Financial highlights

• Operating margin improved to 11.1%, up from 8.4% in FY24, with operating income at R2,180m in H2 25.

• Revenue increased to R34,392m, a 3% rise from FY24.

• EPS rose 50% to 2,662c, and HEPS increased 31% to 3,832c.

• Working capital days improved to 52.1 from 67.2, with a sustainable target of 65 days.

• Capex increased 22% to R1,189m, focused on Super Bakery and culinary mega site.

Outlook and guidance

• Medium-term volume growth guidance set at 4%-6%, with revenue growth above inflation and long-term target of 4%-6%.

• Operating margin expected to reach 12% in the medium term and 15% longer term.

• ROE target above 20% in the short term, aiming for 25% longer term.

• Continued focus on cost optimization, manufacturing efficiency, product innovation, and exploring inorganic growth.

• Ongoing capital allocation discipline, with further portfolio optimization and SKU rationalization.