Tiger Brands (TBS) 1H23 – Results Snapshot

Diluted HEPS 718.0 cps (1H22: 718.5 cps).
Turnover growth of +15.6% y-y (1H22: +1.9% y-y). Price inflation of 17.0% and a -1.0% decline in overall volumes.
GPM declined by 220bps to 27.0% (1H22: 29.2%).
Operating margin declined by 190bps to 7.0% (1H22: 8.9%).
Expense to sales ratio of 20.3% (1H22: 21.2%).
Dividend of 320cps (1H22: 320cps).
Grains segment experienced +21.9% y-y revenue growth, but lower operating margin reflects challenges within the portfolio as well as cost of loadshedding amounting to R37m.
All divisions within the Consumer Brands segment delivered revenue growth, contributing to a +10.1% y-y increase in revenue for this segment.
Home and Personal Care (HPC) segment revenue up +16.4% y-y driven mainly by Personal Care segment.
Exports and International segment revenue up +9.8% y-y, with operating income up to R163m (1H22: R64m).