DURBAN – The Listeriosis outbreak in South Africa came back to haunt Tiger Brands, with the group reporting a 26 percent decline in headline earnings per share (Heps) to 1 587 cents a share during the year to end September, while revenue fell 9 percent to R15.87.
The group said the outbreak and the country’s weak economy also saw its net profit slashed by 20.6 percent to R2.39 billion, while operating income fell to R3.3bn.
Tiger Brands pointed to the suspension of its value-added meat products (Vamp) due to the listeriosis outbreak as the reason for the sharp fall in its overall profits.
It also blamed the country’s technical recession, a sharp decline in the value of the rand, the VAT increase, rises in the cost of transport and essential services, and substantial increases in input costs as other factors that had a negative impact on consumer demand.
Chief executive Lawrence MacDougall said closing the Vamp plants had allowed the group to undertake refurbishments at its production facilities and allocate dedicated time for employee retraining.