1Q Financial Rollercoaster: Tiger Brands’ 10% Surge, 9% Drop, and a 671-Cent Dividend Shake-Up in 2023

  • Mixed Financial Results: Tiger Brands reports a 10% revenue increase but faces a 9% decline in operating income.
  • Dividend Declaration: The company declares a final dividend of 671 cents per share, totaling 991 cents for the year.
  • Strategic Focus: Amid challenges, Tiger Brands prioritizes reshaping its portfolio, cost leadership, and brand rejuvenation for sustained growth.
By Lethabo Ntsoane

South African consumer goods giant Tiger Brands Limited has released its audited group results for the fiscal year ending September 30, 2023. The company faced a challenging trading environment characterized by high food inflation, cost-conscious consumers, rand depreciation, and unreliable electricity supply.

Financial Highlights

Despite these challenges, Tiger Brands reported a 10% increase in revenue, reaching R37.4 billion. However, group operating income declined by 9% to R3.1 billion. Notably, income from associates saw a significant boost, rising by 46% to R697 million.

Key Metrics2023 (R Million)2022 (R Million)Change (%)
Operating Income3.1-9
Income from Associates697+46

EPS: Earnings Per Share, HEPS: Headline Earnings Per Share

Operational Challenges and Strategies

Tiger Brands faced minimal volume impact despite double-digit inflation across its portfolio. The company attributed the 10% revenue growth to price inflation (11%), favorable foreign exchange gains (1%), and marginal overall volume declines (2%). Challenges in recovering higher input costs impacted the gross margin, which declined to 27.7%.

Cost Containment Initiatives

Cost containment initiatives and supply chain efficiencies contributed positively to the results, amounting to R525 million. However, ongoing challenges in fully recovering higher input costs persisted.

Income from Associates

The notable increase in income from associates, up 46% to R697 million, was driven by a strong underlying performance from Carozzi. Earnings from National Foods were positively impacted by R120 million due to a change in functional currency.

Financial Costs

Net financing costs for the year amounted to R238 million, reflecting higher interest rates and the impact of a share buyback program. The company bought back R1.5 billion in shares between June and August 2022.

Dividend Declaration

Tiger Brands declared a final ordinary dividend of 671 cents per share for the year ended September 30, 2023, aligning with the company’s dividend policy of 1.75x cover based on HEPS. The total dividend for the year amounts to 991 cents per share.

Dividend DetailsCents per Share
Final Dividend671
Interim Dividend320
Total Dividend991

Payment Dates: Last day to trade – January 16, 2024; Payment date – January 22, 2024.

Outlook and Strategic Focus

Tiger Brands acknowledges the challenging market outlook with elevated interest rates and high food inflation. The company outlined key focus areas to regain momentum and achieve a step change in trajectory, including:

  1. Operating Model: Establishing a cost structure for sustainable growth.
  2. Portfolio Reshaping: Exploring opportunities in adjacent categories and exiting non-fit categories.
  3. Cost Leadership: Continuing cost savings and achieving specific targets.
  4. Brand Rejuvenation: Simplifying and stretching brands for relevant consumer engagement.
  5. General Trade Growth: Expanding presence in the informal sector with robust route-to-market solutions.
  6. Key Growth Platforms: Focusing on affordability, health and nutrition, and snackification.


Tiger Brands faces ongoing challenges but remains committed to navigating the complex market landscape. The company’s strategic focus on reshaping its portfolio and enhancing operational efficiency reflects its determination to adapt and thrive in a dynamic environment.

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Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted: Email: lethabo@rateweb.co.za Twitter: @NtsoaneLethabo