Research archive for TBS

There were results from one of the major old established South African food companies, Tiger Brands yesterday. These results from Tiger are for the full year to end September. The company that has a 72 percent market share in the tomato sauce market and 69 percent share in the baked beans market. And again we say almost the same thing every time you see this business. It is a milling and baking (30% of total revenue) coupled with grains (42% of total revenue) that make up the bulk of the sales. And then there is a division called "other grains" that is 12 percent of total revenue to give you a total of 84 percent revenue from businesses that are involved in grains, break baking and milling. Groceries, the brands that we know so well, make up only 17 percent of total sales. And the other one percent is made up of the personal health care division.

OK, and then another major, Tiger Brands. Formally Tiger Oats. Well known brands such as Jungle Oats, Tastic Rice, Ace Maize meal and Albany bread. The producers of these staples and is where the revenue is all at for this well established South African business. And not Black Cat peanut butter, Pasta Fatti's & Moni's Pasta and the favourite Koo brands. Domestic revenues for the half year to March was 8.356 billion Rands, of which Grains and Milling & Baking make up 7 billion of that. There is a telling line in the prospects column which tells me that the local consumer is still under pressure: The Company continues to experience difficult trading conditions as consumer spending remains under pressure. Another rate cut?