Delivering volume growth and operating margin ahead of guidance, a second special dividend to shareholders and revealing a refreshed corporate brand and purpose.
Salient features – continuing operations*
Tiger Brands delivered a strong full-year performance for the year ended 30 September 2025, marked by solid growth and continued cash generation, demonstrating disciplined operational excellence while driving affordability for consumers who remain under pressure and value seeking. Continuous improvement efforts and strategic pricing initiatives during the year contributed to increased affordability of the company’s products with overall price deflation of 0.8% and volume growth of 3.5%. In addition, Tiger Brands refreshed its corporate brand to reflect the bold steps it is taking to make affordable, quality foods and essentials available to more consumers across Southern Africa, while creating positive and sustainable outcomes across its value chain.
The company improved overall revenue by 2.7% to R34.4 billion and increased gross margin from 29.1% to 31.3% against prior year on a comparable basis through continuous improvement initiatives, including value engineering, logistics optimisation, and factory efficiencies.
“Despite food and non-alcoholic beverages inflation moderating to 4.5% in September, household budgets remain strained as the increase in other essential costs impacts disposable income, and consumers have to make trade-offs. Our strategy is focused on providing value for consumers. This means we’re constantly working to make quality products affordable through cost leadership and portfolio optimisation initiatives, and more available through superior channel presence, while powering real growth with investments to rejuvenate our brands and execute growth platforms that will deliver consumer relevant products into the future,” says Tjaart Kruger, CEO Tiger Brands.
Volume growth was ahead of short to medium-term guidance, driven by volume growth across the Milling and Baking, Grains and Culinary business units.
Revenue growth for Milling and Baking increased by 5.3% to R8.6 billion, with volume growth of 7.9%. Operating profit increased by 26.8% to R761 million. Bakeries experienced volume growth for the first time since implementation of the refreshed strategy, with double-digit growth achieved in the second half of the year. Grains revenue performance of R7.1 billion was driven by 6% volume growth, offset by price deflation of 5%, with operating profit improving 236% to R736 million owing to continued efforts to drive affordability. Culinary revenue increased by 3.1% to R10.2 billion driven by 3.2% volume growth as a result of strategic initiatives in the condiments category and improved service levels during the second half of the year.
Progress on portfolio optimisation
Tiger Brands’ portfolio optimisation strategy remains on track with key transactions executed in the past year in the categories and divisions considered non-core to the Company’s future competitiveness. These include the Carozzi and Baby Wellbeing division disposals during the first half of the year, and the completion of the Langeberg and Ashton Foods (LAF) transaction at the end of September 2025.
The Randfontein Operations (Wheat Mill and Maize business) transaction announced on 28 May 2025 is currently with the Competition Tribunal for approval. In addition, the Company has entered into a sale and purchase agreement (SPA) to dispose of its 74.69% interest in the Cameroonian subsidiary Chocolaterie Confiserie Camerounaise S.A. (Chococam) to Minkama Capital Ltd (Minkama), an Africa-focused investment firm specialising in consumer goods.
Tiger Brands’ responsible approach to its portfolio optimisation strategy further underscores the commitment to shared value creation for all stakeholders. The LAF transaction has saved 3 000 jobs, while the Chococam transaction ensures continued investment behind a home-grown jewel for the region.
A Corporate Brand for the century ahead
Twenty-five years after changing its company name from Tiger Oats, Tiger Brands has taken the bold step to refresh its corporate brand. In line with this change, the company has also refreshed its corporate purpose to be deliberate about the active role it plays in creating positive and sustainable outcomes across its value chain.
“Our refreshed purpose – to cultivate and nourish lives, every day and every tomorrow – captures the promise we make to our employees, consumers, business partners and communities as we work to make affordable, quality foods and essentials available to everyone through constant innovation, in leveraging our scale and by cultivating partnerships across our value chain.