Pick of the Month: Tiger Brands
The share price is down some 42% from those highs it reached in January. There is some good news, though
Tiger Brands has come under severe pressure over the past year. On January 25 it traded at an all-time high of R478.06. By mid-February, news broke that Tiger Brands was ultimately responsible for the breakout of listeriosis in SA that ended up claiming more than 200 lives. This is a tragedy that can’t be played down. Several Enterprise processed meat factories were shut, and Tiger Brands lost revenue as well as the trust of consumers. The company is also facing a class action lawsuit that is likely to be a drag on profits. Tiger Brands is feeling the effects of this, judging by the trading statement it released in November warning shareholders that earnings will be down more than 20% compared to the same period the year before. Apart from the effects on earnings and reputation, the share price is down some 42% from those highs it reached in January. There is some good news, though. One Enterprise factory has been sterilised, inspected by the department of health and reopened. The b...
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