Tiger Brands has reported growth across most of its core divisions in the first four months of its financial year, maintaining double-digit operating margins despite a constrained consumer environment. The group issued a voluntary trading update indicating that revenue from continuing operations rose 1% year on year for the period ended January, supported by 2% volume growth, although price deflation of 1% weighed on topline expansion.
Adjusted revenue increased by 2%, underpinned by stronger volume growth of 5%. Operating profit improved compared with the prior year, with margins sustained at double-digit levels due to gross margin leverage and logistics optimisation measures. The company cited soft commodity deflation as a material factor affecting gains during the period.
The performance comes as South African consumers continue to face pressure from elevated food, transport and energy costs. Tiger Brands, which owns Albany, Jungle Oats and Black Cat, attributed its resilience to brand strength and pricing competitiveness in a market characterised by intensified rivalry among fast-moving consumer goods producers.
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Growth was recorded across all business units except home and personal care, where sustained competitive intensity affected results. Management has implemented a turnaround plan in that segment, with improvements expected in the second half of the financial year.
The update reflects continued execution of CEO Tjaart Kruger’s portfolio optimisation strategy. Over the past year, the group has disposed of non-core assets to focus on higher-margin categories. The sale of its Randfontein milling operations, including the Ace brand, was completed following regulatory approval. Earlier in 2025, Tiger Brands also exited its Langeberg and Ashton Foods canned fruit business, sold Carozzi, and divested its baby wellbeing division.
The group confirmed that the disposal of its 74.7% stake in Cameroonian subsidiary Chococam remains on track, subject to regulatory approvals. According to disclosures previously filed with the JSE, these transactions form part of a broader capital reallocation programme aimed at strengthening return on invested capital and simplifying the operating structure.
Beacon chocolate and King Foods remain within continuing operations, with management targeting further margin expansion in those divisions. The company is also progressing engagements with insurers and legal representatives to reach resolution in the long-running listeriosis class action litigation.
Looking ahead, Tiger Brands expects some consumer relief as macroeconomic indicators stabilise, although demand is likely to remain value-focused. Strategic priorities include completing the Chococam transaction, assessing additional value realisation options in non-core categories, and investing in brand revitalisation to support market share and profitability. Interim results are scheduled for release on 1 June.