Tiger Brands full year earnings up 19%

A final dividend of 541 cents was declared. This, together with an interim dividend of 245 cents, brings total dividend for the year to 786 cents - up 19% on last year's 660 cents.

Revenue rose 22% to R20.1 billion and operating income before abnormal items increased 17% to R2.6 billion.

"This increase reflects the impact of the significant global price increases in food commodities and in fuel costs, giving rise to a difficult trading environment. The improved turnover also includes the turnover of the recently acquired African businesses, Haco Industries and Chococam, in which the company acquired a 51.0% and 74.7% stake respectively," the company said.

The group said while most categories in the domestic food unit achieved "pleasing performances" the milling and baking absorbed high raw material prices and a cold and wet summer hurt beverages.

In the consumer healthcare unit, the baby and homecare categories delivered a strong performance but personal care showed modest growth in a discretionary spend category.

Tiger Brands added that exports of deciduous fruits benefited from improved international prices and a weaker rand.

The benefits of a weaker rand and better hake fishing conditions improved profitability in the group's fishing unit Sea Harvest, it said.

Looking ahead, Tiger Brands said it would continue to experience difficult trading conditions in 2009, underpinned by continued pressure on consumer spending. Notwithstanding this, headline earnings per share are expected to show growth in real terms in the year ahead.

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