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4-Traders Homepage  >  Equities  >  Johannesburg Stock Exchange  >  Tiger Brands Limited    TBSJ   ZAE000071080

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Tiger Brands : National Foods shows strength in Zimbabwe

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09/29/2017 | 11:46am CEST

JOHANNESBURG - Tiger Brands’ unit in Zimbabwe, National Foods, has declared a 5.21% dividend for the year to June, despite revenues dipping 12% to get their profits out of the financially crippled country.

The company has in the past battled to remit about $1.7m trapped inside the Zimbabwean economy in dividends.

Zimbabwe is struggling to contain a worsening liquidity crunch that has affected companies’ ability to pay off credit facilities and to pay for raw materials on time. National Foods is jointly owned by Tiger Brands and Harare-listed Innscor Africa, which has fast foods, maize and flour milling, snacks manufacturing, poultry and edible oils units under its portfolio. Tiger Brands has a stake of about 37percent in National Foods.

Full year revenues in National Foods dipped 12% to $289.5m, while headline earnings per share declined 4% to 20 cents after operating profit lowered 11% to $19.3m.

Despite the subdued performance, National Foods will declare 5.21 cents per share for the second half period, taking the total dividend payout for the full year period to 10.02 cents.

Volumes in the company were 10% down at 507000 tons, largely impacted by poor performance of the maize division.

Difficulties experienced by Zimbabwean companies to pay foreign shareholders have forced them to re-invest dividends into operations. Other companies that have failed to remit dividends to foreign shareholders on time include Delta Corporation and British American Tobacco as forex shortages worsen.

In spite of the difficulties had by National Foods, Innscor Africa - whose fast foods unit runs Nando’s, Chicken Inn, Steers and Pizza Inn counters in Zimbabwe and the region - raised operating profits from continuing operations for the full year period to the end of June by 19% to $65.5m, it said yesterday.

This translated to a 47percent surge in headline earnings per share to 4.74 cents.

Addington Chinake, the chairman of Innscor, said yesterday that the ability of the group “to manage its foreign creditor position going forward remains its primary risk” factor. On National Foods, he said: “While significant progress was made in reducing foreign creditor positions in the second half of the financial year, foreign credit terms tightened and the management of raw material flow and cost will thus remain critical focus areas.”

The company has also taken a knock from the outbreak of avian influenza at its poultry division, Irvine’s, which had to cull more than 200000 chickens and has resorted to importing hatching eggs to sustain operations.

A marked shortage of table eggs has also hit Zimbabwe.

- BUSINESS REPORT

(c) BusinessReport 1999 - 2017 Independent Newspapers (Pty) Limited. All rights strictly reserved. Provided by SyndiGate Media Inc. (Syndigate.info)., source Middle East & North African Newspapers

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News from SeekingAlpha
2016 Tiger Brands Ltd. ADR 2016 Q4 - Results - Earnings Call Slides
Financials ( ZAR)
Sales 2017 32 613 M
EBIT 2017 4 673 M
Net income 2017 3 730 M
Debt 2017 2 261 M
Yield 2017 2,86%
P/E ratio 2017 17,82
P/E ratio 2018 15,86
EV / Sales 2017 2,39x
EV / Sales 2018 2,21x
Capitalization 75 772 M
Chart TIGER BRANDS LIMITED
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Tiger Brands Limited Technical Analysis Chart | TBSJ | ZAE000071080 | 4-Traders
Technical analysis trends TIGER BRANDS LIMITED
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TrendsBullishNeutralNeutral
Income Statement Evolution
Consensus
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Mean consensus HOLD
Number of Analysts 11
Average target price 417  ZAR
Spread / Average Target 5,8%
EPS Revisions
Managers
NameTitle
Lawrence MacDougall Chief Executive Officer & Executive Director
Khotso David Kenneth Mokhele Chairman
Noel Patrick Doyle Chief Financial Officer, COO & Executive Director
Clive F. H. Vaux Finance Director & Executive Director
Santie Louise Botha Independent Non-Executive Director
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