Tiger Brands reports lower sales in wake of the listeriosis crisis
Revenue from the group’s processed meats business plunged 79% to R213m
Tiger Brands, which was named as the culprit in the 2018 listeriosis outbreak, says sales in the six months to end-March edged lower because of a slump in processed-meat sales and weak revenues from outside SA. The food producer’s shares have lost about 42% of their value since it was blamed for the deadly listeriosis outbreak in March 2018. The group now faces a class-action lawsuit, which it plans to defend against. Tiger Brands said on Wednesday that revenue from continuing operations fell 2% to R15.4bn in the half-year to end-March. The value-added meats business, which had to shut factories following the listeriosis outbreak, faced difficulties with its relaunch, “which affected service levels”, the group said. Revenue from that division plunged 79% to R213m, and the unit made an operating loss of R296m.
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