Tiger Brands (TBS) – Cereal Disappointment

Comparing TBS’ grains division’s performance in 1H19 to PFG’s reveals that TBS underperformed the competition. Particularly concerning is the difficulties TBS experienced in growing their cheaper sorghum-based cereals. We adjust our expectations of VAMP’s recovery path based on the slow relaunch experienced in 1H19. We also highlight how competing alternative proteins in the form of canned pilchards and canned meat may impede a speedy recovery for the french polony category. We highlight the Nigerian market’s limited ability to support TBS’ export growth into the country and improve the prospects of TBS’ Nigerian investments UAC and Deli Foods.