Tiger Brands' quarterly turnover rises to R7.7bn

Industrial group Tiger Brands says turnover from continuing operations for the first quarter of the current financial year amounted to R7.7bn or 10% higher than the corresponding period last year.

Turnover for Tiger Brands remained strong in the first quarter. Image: Cooldesign Free Digital Photos

The group said in a trading update at its annual general meeting that the Dangote AgroSacks business‚ which was disposed of in December last year for 7.5bn Naira‚ has been accounted for as a discontinued operation.

Turnover for the domestic businesses of R5.9bn showed an improvement of 9%‚ whereas the export and international businesses‚ including Nigeria‚ grew turnover by 16% to R1.8bn. Turnover from the export and international businesses benefited from the weaker rand exchange rate.

Domestic sales volumes increased by about 4%‚ against a relatively weak volume performance in the corresponding prior period.

According to the company‚ trading conditions in the domestic market continued to be challenging‚ with continuing volume pressures resulting from rising cost inflation and the weaker rand. This was aggravated by a highly competitive landscape.

The group's performance for the first quarter has been mixed‚ with the grains division achieving pleasing growth‚ especially within the milling and baking operations and breakfast category‚ it said.