Tiger Brands Sees 78% Profit Surge While Pushing to Finalise Listeriosis Claims

Tiger Brands, one of South Africa’s largest food producers, delivered a strong interim financial performance—reporting a 78% surge in earnings per share—while also addressing its ongoing settlement efforts tied to the 2017 listeriosis outbreak.

The earnings increase, announced for the six months ending March 2025, was largely attributed to proceeds from the sale of non-core assets, which brought in R4.4 billion, with another R600 million added in April. Despite economic pressures and price-sensitive consumers, Tiger Brands also managed a 1.9% revenue growth, reaching R18.5 billion, thanks to strategic cost containment and modest price increases.

Settlement Talks Continue in Landmark Listeriosis Case

While shareholders welcomed the financial results, the company also emphasized its ongoing efforts to resolve the class action suit stemming from the listeria outbreak that shook the country in 2017. The outbreak, which was linked to Tiger Brands’ Enterprise Foods facility in Polokwane, led to 218 deaths and nearly 1,000 infections, making it the worst foodborne outbreak in South Africa’s history.

The company confirmed that a settlement offer was presented in April. Although the exact figure remains undisclosed, Tiger Brands stated that it has adequate insurance coverage for the claims. Importantly, the company clarified that the offer was made “without admission of liability” and is still subject to conditions.

The next step involves finalizing damages for individual claimants, with attorneys expected to communicate offers directly to those affected.

“Tiger Brands and its insurers remain committed to achieving a just resolution of the listeriosis class action as soon as possible,” the company said in a statement.

Focus on Efficiency and Divestment Strategy

Tiger Brands CEO Tjaart Kruger noted that while the economy is showing early signs of recovery, many South African consumers are still struggling.

“Consumers remain under pressure and continue to seek value in their food basket,” said Kruger. “We’re responding with cost controls, recipe and packaging optimization, and factory efficiencies to keep products affordable.”

In line with this strategy, the company continues shedding non-core divisions to strengthen its focus. It recently sold its Baby Wellbeing division and a Chilean investment in Empresas Carozzi, with plans underway to offload its Wheat Mill and Maize operation in Randfontein.

Investors to Receive Special Dividend

To reward shareholders after a strong earnings period, Tiger Brands has proposed a special dividend of 1,216 cents per share, returning R1.8 billion—pending approval from the South African Reserve Bank. The company believes this approach balances short-term investor returns with long-term growth flexibility.

While legal proceedings continue in the background, Tiger Brands appears committed to cleaning up its past while focusing on sustainable growth. With profits up and its restructuring plan on track, the company is aiming to regain consumer trust while maintaining its edge in a competitive market.

{Source: IOL}

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