Tiger Brands' underlying assumptions for update

Tiger Brands, in trading update on Feb 14, 2012, advised that, despite difficult trading conditions, headline earnings per share were expected to show satisfactory growth for the year ending 30 September 2012 as compared to the 2011 reported earnings.

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However, the JSE has advised that this is regarded as a general profit forecast in terms of the provisions of the JSE Limited Listings Requirements

Tiger Brands responded on Friday by saying hat the following key assumptions were considered in arriving at the above general forecast which was compiled using the group's accounting policies as set out in Tiger Brands' recently published 2011 annual report:

- Consumer spending on non-durable consumer goods will remain under pressure during the remaining period of the current financial year;

- Soft commodity prices will gradually start to decline in the second half of the financial year;

- The Rand/Dollar exchange rate will remain fairly stable within a range of R7.75 to R8.00 to the US Dollar;

- Interest rates will remain more or less constant for the remainder of the financial year;

- The price of crude oil will remain fairly stable within a range of USD110 to USD118 per barrel; and

- The acquisitions made during the latter half of the 2011 financial year should contribute positively to the group's earnings.