JAMIE CARR: Tiger Brands is toothless and in trouble
Tiger’s latest profit warning points to a legal dispute with a former distributor in Nigeria which meant that its export division managed virtually no sales in the country
It’s safe to assume that if you were to conduct a straw poll among Tiger Brands’ executives, and indeed its shareholders, to find out their favourite places to visit, Nigeria would be unlikely to feature on the podium. The increasingly toothless Tiger’s latest profit warning points to a legal dispute with a former distributor in Nigeria which meant that its export division managed virtually no sales in the country that brought it the debacle of Dangote Flour Mills.
Overall trading conditions were tough, with particular challenges including pricing pressures in the grains portfolio especially impacting bakeries, pasta and rice, while it is expecting the next quarter to be challenging for groceries. This amounts to a whole pile of issues to resolve for new CEO Noel Doyle, who may well be tempted to take as much pain on the chin as possible while it can still be attributed to his predecessor Lawrence MacDougall. Tiger says it has received several indicative offers for its value-a...
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