Johannesburg – Tiger Brands’ operations suffered indirect and direct Covid-19-related costs of about R400 million in the year to the end of September.
According to chief executive Noel Doyle half of that amount was attributed to direct costs.
Covid-19 related costs, the impact of the tough economic environment on consumer spending and input cost increases resulted in the group reporting a 23% decline in headline earnings per share from continuing operations, to 1196 cents a share.
Despite this, the packaged good company – whose brands include Ace, Albany, Jungle Oats and Oros – declared a total dividend of 670c during the year.
Doyle said the closure of non-essential facilities, increased spend directed toward prioritising the health and safety of employees and temporary disruptions from Covid-19 infections at site level adversely affected the efficiency of the group’s supply chain.
“Other cost drivers included compliance with the consumer and customer protection and national disaster pricing regulations. The results have been disappointing, reflecting the challenges faced by the company in maintaining margins in what was an already difficult consumer environment before the onset of the Covid-19 pandemic,” said Doyle
