Tiger Brands maintains dividend despite falling sales and profit
The food producer’s shareholders will get the same dividend as in 2017, despite the toxic effects of listeria on its results
SA’s listeria scandal halved the sales of Tiger Brand’s meat products division and pushed it into a loss, contributing to the group’s overall sales and profit declining. The fast-moving consumer goods group’s revenue fell 9% to R28.5bn and its net profit by 22.5% to R2.4bn, its results for the year to end-September released on Thursday morning showed. Tiger Brands nevertheless maintained its final dividend at R7.02, keeping its dividend for the 2018 financial year at R10.80, the same as in the previous financial year. Its value added meat products division — which houses Enterprise, whose polony was found to be the source of listeria-related fatalities in March — suffered a 53% drop in revenue to R1.1bn and contributed an operating loss of R252m from a profit of R104.2m in the previous year. Thursday’s results statement said Tiger Brands expects its product liability insurance to cover legal claims it is likely to face from listeria victims. “The company has product liability insura...
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