Tiger Brands Limited · JSE:TBS
Tiger Brands — H1 2025 Earnings Presentation
43 slides from Tiger Brands's earnings presentation, May 28, 2025
Slide 1: H1 25 Interim Results Presentation
H1 25 INTERIM RESULTS PRESENTATION May 2025
Slide 2: Disclaimer
DISCLAIMER Forward-looking statement This document contains forward-looking statements that, unless otherwise indicated, reflect the company’s expectations as at 28 May 2025. Actual results may differ materially from the company’s expectations if known and unknown risks or uncertainties affect the b
Slide 3: Index
INDEX 1 2 3 4 H1 25 HIGHLIGHTS STRATEGIC UPDATE H1 25 OPERATIONAL PERFORMANCE OUTLOOK 3
Slide 4: H1 25 Highlights
NOURISH AND NURTURE MORE LIVES EVERYDAY
Slide 5: Compelling topline underlying growth, halting years of volume decline
COMPELLING TOPLINE UNDERLYING GROWTH, HALTING YEARS OF VOLUME DECLINE Underlying* volume growth of 2,6% for continuing operations showing encouraging momentum of core categories Gross and Operating margins (%) improved by 110Bps and 210Bps respectively for continuing operations Continuous improvemen
Slide 6: H1 performance scorecard: on track to deliver short- to medium-term ambition
H1 25 PERFORMANCE SCORECARD: ON TRACK TO DELIVER SHORT- TO - MEDIUM-TERM AMBITION AS GUIDED Short - to - Medium-Term H1 25 H1 24 Guidance Profit & Loss Underlying volume growth (%) + 2,6%* - 8,5% 1% to 3% Revenue growth (%) + 2,0% - 1,0% Exceed inflation Operating margin (%)** 9,6% 7,5% exceed singl
Slide 7: Strong top and bottom line performance, delivering solid growth
STRONG TOP AND BOTTOM LINE PERFORMACE, DELIVERING SOLID GROWTH H1 25 VS H1 24 Operating margin (%) 9,6% 7,5% ROIC (%) 15,7% 13,8% Cash conversion ratio* 66% 34% Gross margin (%) 29,6% 28,5% Disposals completed: Carozzi and Baby Wellbeing Portfolio optimisation Disposals at advanced stage: LAF and Ra
Slide 8: Improved capital allocation discipline
IMPROVED CAPITAL ALLOCATION DISCIPLINE Principals of capital Portfolio Uses of cash and returns to allocation framework optimisation shareholders ▪ Gross and operating margin ▪ Non-core categories exited ▪ Cash returns to improvement ▪ SKU rationalisation tracking shareholders in H1 25: ▪ ROIC (%) a
Slide 9: Strategic Update
“ TIGERBRANDS e NOURISH AND NURTURE MORE LIVES EVERYDAY
Slide 10: Geopolitical uncertainty risks consumer recovery while easing food inflation offers relief
GEOPOLITICAL UNCERTAINTY RISKS CONSUMER RECOVERY WHILE EASING FOOD INFLATION OFFERS SHORT-TERM RELIEF Food inflation Affordability key Retail and wholesale Unemployment abating consumer driver sales growth remains a concern +3.6% +3.4% +4.4% 31.9% Year-on-year change Economical offerings are Seasona
Slide 11: Business optimisation journey and progress to date
BUSINESS OPTIMISATION JOURNEY AND PROGRESS TO DATE FEB 2024 SEP 2024 SEP 2024 DEC 2024 MAR 2025 Federated operating Disposed non- R200m in Continuous Further enhancement Baby Wellbeing model implemented core HPC brands, Improvement (CI) of operating model and Carozzi sale; with new Business Baby Wel
Slide 12: Operational Performance
CONES VE, e TIGERBRANDS e NOURISH AND NURTURE MORE LIVES EVERYDAY i s
Slide 13: Progress on execution
PROGRESS ON EXECUTION Cost Logistics Portfolio Notable leadership optimisation optimisation Progress ▪ Gross margin ▪ Logistics control tower ▪ Carozzi completed ▪ LAF transaction: improvement H1 25: implementation − Mutually beneficial ▪ Baby Wellbeing 29.6% (+110 bps) structure after years of ▪ Pr
Slide 14: Reported H1 25 financial highlights
REPORTED H1 25 FINANCIAL HIGHLIGHTS 2% 30% 2% REVENUE H1 GROWTH OPERATING INCOME* H1 GROWTH OPERATING MARGIN* H1 GROWTH 18 482 18 130 1 773 1 365 9,6% 7,5% H1 25 H1 24 H1 25 H1 24 H1 25 H1 24 HEPS** (cps) 34% EPS** (cps) 78% WORKING CAPITAL 51% FY GROWTH FY GROWTH H1 REDUCTION PER R1 REVENUE 1 021 7
Slide 15: 34% HEPS growth from continuing operations
34% HEPS GROWTH FROM CONTINUING OPERATIONS Revenue + 1.9% R 18 482 million Operating Income + 30.0% R 1 773 million Income from Associates - 15% R 337 million HEPS from continuing operations + 34% 1 021 cps Special Dividend + 100% 1 216 cps Cash generated from operations +347% R 3 398 million Divide
Slide 16: H1 25: Core earnings in focus
H1 25: CORE EARNINGS IN FOCUS H1 25 H1 25 Disposed Discontinued* Disposed Non-core Core Reported Revenue (R’m) 16 680 121 - - 1 682 18 482 Net Income after tax (R’m) 1 221 459 (252) 625 44 2 096 Continuing HEPS (cps) 790 (6) - 206 32 1 021 Core: Non-core: CULINARY Non- Disposed Discontinued* Dispose
Slide 17: 54% HEPS improvement versus prior year on core operations
54% HEPS IMPROVEMENT VERSUS PRIOR YEAR ON CORE OPERATIONS* HEPS: H1 24 HEPS: H1 25 +34% 1200,0 1000,0 +54% 206,0 32,0 1 021 790 (6,20) 763,0 HEPS (cps) 800,0 600,0 511,0 400,0 (219,0) (12,0) (21,0) 200,0 - H1 24 Carozzi Baby Non-core H1 24 H1 25 Carozzi Baby Non-core H1 25 Reported Wellbeing Core Co
Slide 18: H1 underlying volume growth of continuing operations at 2,6% driven by Culinary
H1 25 UNDERLYING* VOLUME GROWTH OF CONTINUING OPERATIONS AT 2,6% DRIVEN BY CULINARY H1 25 vs H1 24 1,3% 2,6% Price inflation Volume 17,1 16,4 Business Unit Total Price Volume Milling and Baking (4,0%) (1,6%) (2,4%) Culinary 5,9% 0,1% 5,8% Grains 2,5% 1,9% 0,6% STB 6,4% 5,8% 0,6% HPC 3,4% 3,2% 0,2% T
Slide 19: Strong cash generation in H1 driven by disposal proceeds
STRONG CASH GENERATION IN H1 25 DRIVEN BY DISPOSAL PROCEEDS Major contributors to movement in cash for the period (R’m) 1 303 6 397 3 917 6 483 202 1 033 3 398 2 365 1 096 426 22 1 021 H1 25 H1 24 Cash Working Cash Dividends Tax paid Net Cash inflow Repurchase Net Other Cash at Cash closing Cash ope
Slide 20: Continuing progress on return on invested capital
CONTINUING PROGRESS ON RETURN ON INVESTED CAPITAL AND ON TRACK FOR LONG-TERM AMBITION WITHIN NEXT 4 YEARS H1 F25 H1 F24 Net (debt)/cash (R’m) 5 858 (2 674) Return on Equity (ROE) (%) 15,6 16,3 Return on invested capital (ROIC) (%) 15,7 13,8 WACC rate (%) 13,1 14,5 Working capital 12,1 24,8 per R1 re
Slide 21: Board approvals received for key projects
BOARD APPROVALS RECEIVED FOR KEY PROJECTS Optimisation Growth Key Project and and enabling efficiency capacity technology Super Bakery Mega DC (Gauteng) Snacks & Treats manufacturing footprint Beverages primary warehouse Total capital approvals: R1,8bn 21
Slide 22: Milling and Baking
MILLING AND BAKING STRONG OPERATING LEVERAGE DELIVERED BY DILIGENT PRICE MANAGEMENT H1 F25 H1 F24 ▪ Revenue growth of 0,4% driven by 4 190 4 172 326 price inflation enabled by discount management and the exit of non 237 profitable routes. ▪ Price management and margin recovery remain key focus areas
Slide 23: Bakeries: key orders placed, Super Bakery on track
BAKERIES KEY ORDERS PLACED, SUPER BAKERY ON TRACK FOR FY27 COMMISSIONING Focus Areas H1 25 FY24 ▪ Significant equipment & infrastructure review ✓ Key orders placed for Super Bakery equipment, on Capex strategy ▪ Super Bakery implementation track for F27 commissioning undertaken ▪ Major upgrades unde
Slide 24: Grains
GRAINS RECOVERY IN KEY CATEGORIES AND STRATEGIC PROCUREMENT DELIVERS IMPROVED PERFORMANCE H1 F25 H1 F24 ▪ Revenue decline of (0,1%) driven by 3 614 3 618 231 deflation within King Foods and Rice, which offset gains in Jungle and Pasta. ▪ Tiger volume growth showing good recovery in the short-term tr
Slide 25: Grains: affordability remains a focus
GRAINS AFFORDABILITY REMAINS A FOCUS WITH DEFLATIONARY IMPACT ON KEY COMMODITIES Focus Areas H1 25 FY24 ▪ Price inflation in Rice, Oats and Sorghum ✓ Price/volume metrics remain a key decision-maker have driven price increases and deal de- for category growth, with volume tension escalations ahead o
Slide 26: Culinary
CULINARY REVENUE AND OPERATING INCOME GROWTH SUPPORTED BY COMPETITIVE PRICING AND CI INITIATIVES H1 F25 H1 F24 ▪ Revenue growth of 5,0% driven by 5 217 443 deliberate market share recovery 356 promotional strategies in the local 4 968 market, offset by challenges in Mozambique. ▪ Operating income im
Slide 27: Culinary: volume growth and operating profit improvement
CULINARY VOLUME GROWTH AND OPERATING PROFIT IMPROVEMENT DESPITE SUPPLY CONSTRAINTS ON KEY BRANDS Focus Areas H1 25 FY24 ✓ Roll-out of Mayonnaise re-formulation hampered ▪ Successful move to PET on Black Cat by vinegar supply constraints ▪ Mayonnaise re-formulation ▪ Value engineering (recipe and pac
Slide 28: Snacks, Treats & Beverages
SNACKS, TREATS & BEVERAGES FAVOURABLE MIX AND DEGRAMMAGE INTIAITIVES DELIVER COMPELLING TOPLINE AND OPERATING INCOME IMPROVEMENTS H1 25 H1 24 435 ▪ Revenue growth of 6,1% driven by 3 227 390 both Snacks & Treats (S&T) and 3 041 Beverages, with notable double-digit growth in Oros and Jungle health ba
Slide 29: Home & Personal Care
HOME & PERSONAL CARE HPC CATEGORY IMPACTED BY SUPPLIER CHALLENGES AND COMPETITOR INTENSITY H1 25 H1 24 311 ▪ Continued competitor intensity on 1 402 1 469 292 pricing and innovation in Personal Care as well as pesticide supply challenges in Homecare during peak season, resulted in a revenue decline
Slide 30: International
INTERNATIONAL CHOCOCAM VOLUME GROWTH AND MARKET LEADERSHIP CONTINUE DESPITE COST PRESSURES H1 25 H1 24 ▪ Revenue decline purely due to ZAR 814 836 appreciation, as local currency 118 123 performance saw 1,1% increase in volumes, and 2,6% revenue growth versus prior year driven by Gums, Candies and B
Slide 31: Outlook
NOURISH AND NURTURE MORE LIVES EVERYDAY
Slide 32: Strategic priorities execution will ensure delivery in line with guidance
STRATEGIC PRIORTIES EXECUTION ACROSS BUSINESS UNITS WILL ENSURE DELIVERY IN LINE WITH GUIDANCE, DESPITE MACROECONOMIC HEADWINDS Superior Channel Shaping our Cost Growth Rejuvenating our Presence Portfolio Leadership Platforms Brands ▪ Bakeries General ▪ Conclusion of Baby ▪ Continue ▪ Drive affordab
Slide 33: Tiger Brands
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Slide 34: Reported revenue growth of 1,9% for continuing operations
REPORTED REVENUE GROWTH OF 1,9% FOR CONTINUING OPERATIONS DRIVEN BY PRICE INFLATION OF 2,0%* AND RELATIVELY FLAT VOLUME H125 vs H124 2,0%* (0,1%) Price inflation Volume Business Unit Total Price Volume 18,5 Milling & Baking 0,4% 3,8% (3,4%) 18,1 Culinary 5,0% (0,5%) 5,5% Grains (0,1%) 1,3% (1,4%) ST
Slide 35: 55% HEPS improvement versus prior year on core operations
55% HEPS IMPROVEMENT VERSUS PRIOR YEAR ON CORE OPERATIONS Reported Baby Randfontein Core H1 25 Rm Carozzi3 Non-core4 H1 25 Wellbeing1 & LAF2 Operations Operating income* 1 773 2 107 1 664 Net Profit After tax 2 096 459 (252) 625 44 1 221 EPS from continuing 1 508 295 401 28 784 operations (cps) HEPS
Slide 36: Operating income growth of 33% for continuing core operations
OPERATING INCOME GROWTH OF 33% FOR CONTINUING CORE OPERATIONS Operating Income* Operating Income* Core H1 25 H1 24 Non-Core H1 25 H1 24 Rm King Foods MILLBAKE Bakeries 326 237 Wheat Milling Chococam 107 86 Rice Chocolate GRAINS 231 30 Pasta Jungle CULINARY Groceries 443 356 Baby Food Snacks & Treats
Slide 37: Green shoots in market share recovery for focus brands
GREEN SHOOTS IN MARKET SHARE RECOVERY FOR FOCUS BRANDS: MARCH 2025 Volume Share Value Share Equity Brand Rank 12 mm 6 mm 3 mm Rank 12 mm 6 mm 3 mm Rank Mar 2025 Mar 2025 Mar 2025 12 mm Mar 2025 Mar 2025 Mar 2025 12 mm #1 27,4% 26,8% 28,5% #1 27,8% 24,4 28,7% #1 #1 59,0% 28,1% 54,8% #1 63,4% 55,5 60,
Slide 38: Revenue growth for continuing operations driven by Culinary, STB and Millbake
REVENUE GROWTH FOR CONTINUING OPERATIONS DRIVEN BY CULINARY, STB AND MILLBAKE, OFFSET BY CHALLENGES IN HPC MILLING AND BAKING 23% GRAINS 19% ▪ Optimisation of existing Wheat Milling capacity OF REVENUE ▪ Operating margin (%) improvement across all OF REVENUE with disposal of Randfontein Mill Grains
Slide 39: H1 25 geographical segments
H1 25 GEOGRAPHICAL SEGMENTS 1% 1% 17% 3% South Africa OF REVENUE FOR 3% H1 25 GENERATED 4% BLNE* OUTSIDE OF 5% SOUTH AFRICA Cameroon Mozambique Zambia Zimbabwe 83% Rest of World *Botswana, Lesotho, Namibia, eSwatini 39
Slide 40: H1 24 major contributors to cash for the period
H1 24 MAJOR CONTRIBUTORS TO CASH FOR THE PERIOD Major contributors to movement in cash for the period (R’m) 2 110 1 021 776 760 1 996 (1 349) (379) (1 079) (489) (147) (417) Cash Working Cash Dividends Tax paid Net Cash outflow Net Other Cash at Closing cash operating capital generated paid financin
Slide 41: Refreshed and focused consumer-centric vision
REFRESHED AND FOCUSED CONSUMER-CENTRIC VISION PURPOSE Nourish and Nurture more lives everyday Growing Southern Africa’s leading consumer goods company that VISION places the Consumer at the centre of everything, through our People, with the most accessible loved Brands ANDS LOVED BR BY G N O C R O S
Slide 42: Positive execution momentum against our strategic priorities
POSITIVE EXECUTION MOMENTUM AGAINST OUR STRATEGIC PRIORITIES STRATEGIC THRUSTS Cost Shaping Rejuvenating Executing Superior Leadership Our Portfolio Our Brands Growth Channel of the Future Platforms Presence ENABLED BY Igniting our Game-changing Competitive People Innovation Manufacturing Federated
Slide 43: Short to medium term targets delivered through focused execution
SHORT TO MEDIUM TERM TARGETS WILL BE DELIVERED THROUGH FOCUSED EXECUTION ENABLED BY A WINNING CULTURE FY24 Short - to - Medium-Term Long-Term Volume growth % - 6% 1% - 3% 4% - 6% P&L Revenue growth % +1% greater than inflation greater than inflation Operating margin %* 8.3% exceed single digits doub