Tiger Brands’ tough year, marked by a listeria outbreak that killed 180 people, looks set to get worse. The company’s share price collapsed as much as 10% on Thursday, shedding about R6.2bn of its market capitalisation, after the group said full-year profit could drop by more than a third. A deterioration in SA’s broader economy is adding to Tiger Brands’ woes, with the producer of Enterprise polony, Jungle Oats and Oros saying it expected to suffer from weak consumer confidence and higher costs as a result of the rand’s drop. Chief financial officer Noel Doyle said on Thursday the listeriosis outbreak had stretched the company’s management. “It is the most serious crisis we have faced. It has taken a lot of our time. It would be incorrect to say otherwise.” As a result of the outbreak, Tiger Brands had closed four factories, he said, while also keeping its employees. Tiger Brands did not know when the factories would reopen, he said. The share price closed 8.94% down at R298.33 a s...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.