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Listeriosis leaves Tiger Brands listless
Tiger Brands’s share price has fallen 12.47% since the health ministry publicly announced that its factory in Polokwane was the source of the listeriosis outbreak on March 4. Analysts have criticised the food producer’s handling of the crisis, which has seen it recall value-added meat products across the country and close down numerous factories. The general view among several market watchers is that Tiger Brands should have been more transparent and proactive to protect consumers. Tiger Brands has estimated that this would cost between R337m and R377m on a pretax basis before accounting for insurance recoveries. The company also faces a looming multimillion-rand class action. "The company’s estimates are a lot lower than I anticipated. I expect the final loss amount to be in the region of R5bn," said Gryphon Asset Management portfolio manager Casparus Treurnicht. "The way management handled the case could drag the share down further." Peter Takaendesa, portfolio manager at Mergence...
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