Tiger Brands under pressure as shares fall 9%
Fast moving consumer goods group says meaningful recovery depends on an improvement in the consumer environment
Shares in Tiger Brands plunged 9% on Wednesday morning after the consumer goods group said sales fell in the four months to January because of pricing pressures and volume declines. Analysts said the weak trading update indicated that consumers were under intense pressure. Tax hikes could make consumers worse off. Tiger Brands said revenue fell 5% compared to a year before, with selling prices down 1% and volumes 4% lower owing to declines in the home and personal care categories and in exports. “Trading during the first four months of the financial year was characterised by intense competition in a low-growth, value-driven consumer environment,” the owner of Tastic, Oros and Koo said. Sales declines were “aggravated” by price deflation in soft commodities and higher levels of discounting in the South African business, stemming from competitive pressures. “Home care’s performance was impacted primarily by lower demand due to a delayed pest season and an unfavourable product mix, whi...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.