Tiger Brands Ltd is a South African packaged goods company listed on the Johannesburg Stock Exchange (JSE) that manufactures fast-moving consumer goods (FMCG). The portfolio also includes leading brands in the home and personal care segments.
The graph below shows the latest Tiger Brands share price (JSE: TBS), with a strong uptrend both over the past 12 months, and on the five year. A strong financial performance, coupled with the dividend payouts, has been viewed positively.
Tiger Brands Limited (JSE: TBS), a South African food producer with a legacy spanning nearly a century, is currently undergoing a significant transformation. The company, known for its iconic brands like Koo, Jungle Oats, and Albany, has been actively reshaping its portfolio through strategic divestitures and a renewed focus on its core domestic market. This restructuring comes amidst a backdrop of financial performance improvements and the resolution of long-standing legal challenges, creating a complex picture for investors to consider.
YOUR CAPITAL IS AT RISK
Recent Developments
Tiger Brands’ has been on a recent successful trajectory . Headline earnings per share from continuing operations surged 34%, exceeding analyst expectations and signaling a successful navigation of inflationary pressures. Revenue also saw a modest increase, driven by price adjustments and a notable rise in underlying volumes. This financial strength allowed the company to reward shareholders with an increased interim dividend and a substantial special dividend, reflecting confidence in its future prospects.
However, this positive financial performance is intertwined with a series of strategic divestitures. Tiger Brands has been actively selling off non-core assets to streamline its operations and concentrate on areas where it believes it can achieve sustainable growth. These divestitures include:
- Sale of Stake in Empresas Carozzi: The sale of its stake in the Chilean food company for $240 million marked a significant step in the company’s shift away from Latin American expansion.
- Sale of Baby Wellbeing Business: The disposal of the Baby Wellbeing business, including the Elizabeth Anne’s brand, for 605 million rand further underscored the focus on core food operations.
- Sale of Canned Fruit Business: The sale of Langeberg and Ashton Foods, the canned fruit division, for a symbolic one rand, highlighted the company’s commitment to exiting non-strategic areas, while also investing in community development.
- Planned Divestiture of Maize Milling Business: The announced intention to sell the maize milling business, including the Ace maize meal brand, signals a response to increased competition and a strategic realignment.
These divestitures reflect a clear strategy to simplify the business, reduce complexity, and free up capital for reinvestment in core brands and growth opportunities within the South African market.
Who Tiger Brands?
The history of Tiger Brands Ltd can be traced back to 1920 and it now has a growing presence in Africa.
Today, Tiger Brands Ltd has a diversified portfolio of products and services in more sectors of the Consumer Goods value chain and renders the following services: manufacture, marketing, and distribution of consumer goods, baby care products, bakeries, and culinary fruit vegetable products.
Tiger Brands Ltd also provides home care products, milling products, rice, pasta, superfoods and personal care products, snacks, treats, and beverages.
The current CEO of Tiger Brands Ltd is Noel Patrick Doyle.
Further, Tiger Brands Ltd provides out of home solutions and product offerings in various pack formats to franchised restaurant groups, hotel groups, catering groups, airlines, institutions, independent restaurants and coffee shops, independent hotels, game reserves, lodges, and bed and breakfast establishments; and product solutions for the establishment cleaning, pest control, and room air refreshing.
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Tiger Brands Ltd’s equity stocks are for sale online on the Johannesburg Stock Exchange (JSE) under the stock symbol TBS.
Tiger Brands Ltd forms part of the Consumer Goods sector, specifically, the Food Production industry of the Johannesburg Stock Exchange (JSE).
Tiger Brands (JSE: TBS) – 5 Year Charts
Company Essentials
Tiger Brands Ltd exports its products to approximately 25 countries in Africa.
Tiger Brands Ltd has its headquarters at 3010 William Nicol Drive, Bryanston, 3010, South Africa.
Tiger Brands Ltd has more than 20 600 employees.
Tiger Brands is a major player in the South African Fast-Moving Consumer Goods (FMCG) sector, with a diverse range of products spanning grains, snacks, beverages, and home care. The company has built a strong presence in South African households, leveraging its well-established brands and extensive distribution network. Beyond South Africa, Tiger Brands has historically maintained a presence in other African markets and Latin America, though its strategic focus is now firmly on its domestic operations.
How to buy Tiger Brands (JSE: TBS) – Step by Step
The stock market is one of the most attractive financial markets that sees millions of retail investors and traders’ participating daily. To buy, sell or trade Tiger Brands Ltd stocks on the Johannesburg Stock Exchange (JSE), traders and investors can follow a few simple steps:
- Find the share that you want to buy, in this case, “TBS”.
- Select a forex broker that offers access to the Johannesburg Stock Exchange (JSE).
- Review the broker’s trading conditions, fees, deposit and withdrawal methods, trading platform, customer support, regulation, and other components to ensure that they are aligned with your trading plan.
- Open a live trading account with the broker by completing the online application form and providing the necessary documentation to verify the trading account.
- You are now ready to make your first share purchase through the broker.
- You can further start to build and diversify your portfolio by buying more shares.
YOUR CAPITAL IS AT RISK
🟩 The Bull Case for JSE: TBS
- Successful Restructuring: The ongoing divestitures streamline operations and unlock value, allowing the company to focus on its core strengths and high-growth areas.
- Strong Brand Portfolio: Tiger Brands possesses a portfolio of iconic and trusted brands that resonate with South African consumers, providing a competitive advantage.
- Improved Financial Performance: Recent financial results demonstrate the company’s ability to navigate inflationary pressures and deliver earnings growth.
- Resolution of Listeriosis Lawsuit: The settlement removes a significant legal overhang and allows management to focus on future growth.
- Capital Allocation: Proceeds from divestitures are reinvested in the core business and returned to shareholders through dividends and share buybacks.
🟥 The Bear Case for JSE: TBS
- Economic Challenges in South Africa: The South African economy faces numerous challenges, including high unemployment, rising inflation, and political uncertainty, which could negatively impact consumer spending and Tiger Brands’ sales.
- Increased Competition: The FMCG sector in South Africa is highly competitive, with both local and international players vying for market share.
- Execution Risk: The successful execution of the restructuring plan is not guaranteed, and there is a risk that the divestitures could disrupt operations and negatively impact profitability.
- Commodity Price Volatility: Fluctuations in commodity prices could impact the company’s input costs and margins.
- Reputational Risk: Although the listeriosis settlement is in place, reputational damage could linger and affect consumer confidence.
