Although Tiger Brands delivered satisfactory results this year, the company was inhibited by the poor performance of its Nigerian-based investment.
Turnover increased by 5%, from R30,1 billion to R31,6 billion, with group operating income increasing by 3%, to R3,7 billion, according to a company press release. Profit before tax decreased by 20% to R2,1 billion. This was mostly influenced by abnormal charges of R1,7 billion relating to the impairment of the group’s investment in Tiger Branded Consumer Goods (TBCG) of Nigeria, according to the release. Following a sharp drop in the price of crude oil, Nigeria’s main export commodity, the Nigerian naira was devalued, drastically affecting the country’s macroeconomic environment. This had resulted in Tiger Brands’ operations in Nigeria being particularly hard hit, the company said. Continued losses at TBCG,…