Half Year 2025 Tiger Brands Ltd Earnings Call Transcript
Key Points
- Tiger Brands Ltd (FRA:UG5A) reported a 2.6% growth in core business volumes, marking a turnaround from previous declines.
- The company has successfully implemented continuous improvement programs, achieving cost savings ahead of targets.
- Portfolio reshuffling has been effective, with successful sales of non-core operations like Karachi and baby well-being.
- The company has a strong cash position due to operational cash generation and disposals, enabling special dividends and share buybacks.
- Operating margin is approaching 10%, and return on invested capital (ROIC) is on track, indicating improved financial health.
- The consumer market remains under pressure due to economic challenges, impacting affordability and demand.
- The company faces competitive pressures in the home and personal care segment, with significant challenges in aerosol supply and competitive activity.
- There are concerns about stranded costs from disposals, although efforts are being made to mitigate these through continuous improvement programs.
- The grains business, despite recent improvements, has historically underperformed, and the company is exiting the maize and chocolate confectionery markets due to strategic misalignment.
- The bakery segment faces capacity constraints, and while a new super bakery is planned, it will not be operational until late next year.
Good morning to all of you joining us here at the JSC in person as well as all of those who are joining us online. My name is Bharati Mahwele, Investor relations at Tiger Brands, and I have the absolute honor of welcoming you all to the interim results for 2025.
Joining me on stage, we have the CEO of Tiger Brands, Mr. Chad Kruger, as well as the CFO, Mr. Tuchene Gonder, who'll be taking you through our presentation this morning.
But before I hand over to Chatt, I'd like to bring your attention to our forward-looking statement.
And with that, I'll hand over to the CEO of Tiger Brands, Mr. Chat Kruger.
Good morning everyone.
I will TRY not to sound as formal as parrati does.
We can also say welcome to our chair Lady Geraldine, that's here.
Thank you for attending, Geraldine.
I really thought you've heard enough of this yesterday in the board meeting.
And we've got some other colleagues. Joe
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