Civil unrest, product recall eat into Tiger Brands earnings, resulting in more than 5% decline in HEPS

SOUTH AFRICA – South African food manufacturing giant, Tiger Brands expects its full year earnings for the period ended September 2021, to take a dip impacted by once-off costs related to the civil unrest that took place in July 2021 as well as the canned vegetable recall. Tiger Brands had announced previously that a number of its sites in KZN had been affected by acts of looting and vandalism, resulting in damage to the Rice and Snacks & Treats operations. This incident was shortly followed by the recall of 20…

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Unilever Nigeria turns to profitability registering 152% rise in earnings in 9 months

NIGERIA – Leading Nigerian FMCG company, Unilever Nigeria, has recorded 31.3% increase in revenue to N58.72billion (US$143m) for the nine months period ended September 30, 2021, against N44.73billion (US$109.03m) registered in the prior corresponding period. The revenue growth was driven by increased earnings in its food products category which gained 21.4% in revenue to N30.5billion (US$74.35m) from N25.1billion (US$61.18m) recorded in 2020. Meanwhile, analysis of its results showed that revenue from Home & Personal Care rose by 44% to N28.3billion (US$68.98m) from N19.6billion (US$47.78m). The consumer goods company was able…

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Dairibord invests US$2 million to double UHT filling capacity of cartonised beverages

ZIMBABWE – Zimbabwe’s leading milk processor, Dairibord Holdings, has invested US$2 million in additional Ultra-High Temperature (UHT) filling and packing equipment, which will double capacity for cartonised beverages by year-end. Recently, the food processing company invested about US$1.5 million into an ammonia plant, which has since been commissioned and the technology was expected to see growth in ice-cream production, improving product portfolio mix and margin performance going forward. In a trading update for the quarter ended September 30, 2021, the milk giant said the business was geared to take full…

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Unilever Q3 sales marginally rise amid inflation driven price hikes

UK – British multinational consumer goods giant Unilever has recorded underlying sales growth of 2.5% in its third-quarter results amid rising material costs and continued impact of covid-19 on sales in various markets.  The owner of Ben & Jerry’s and Magnum ice cream reported turnover of €13.5 billion (US$15.71 billion) in Q3, an increase of 4% on the previous year.   In Unilever’s third quarter, the company’s foods and refreshment unit expanded its underlying sales by 3% and recorded a turnover of €5.1 billion, ahead of beauty and personal care (up 2.6%)…

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Danone sales rise in Q3 as company makes progress towards profitable growth

FRANCE – French multinational food company Danone has reported a 3.8% rise in third quarter sales mainly driven by organic contribution of hyperinflation in various geographies where it operates.   Danone further noted that its third-quarter sales amounting to  €6.158bn ($7.18bn) were also partly boosted by the combined effects of the integration of Harmless Harvest and Follow Your Heart and the disposal of Vega.   Growth was robust across all regions with Europe and North America posting a 3.9% growth on a like-for-like basis, driven by the sustained momentum in the Essential Dairy and Plant-Based division…

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Pick n Pay’s tale of two differing quarters earns the retailer 4.1% rise in half year revenue

SOUTH AFRICA – South African retailer Pick n Pay has published its financial results for the six months ended 29 August 2021, with the group reporting solid results despite the harsh operating environment exhibited during the period. According to the company, its comparable headline earnings per share increased 90.9% year-on-year, from a low base of 37.12 cents to 70.85 cents. This is a resilient performance in a period marked by unprecedented civil disorder in South Africa and the resumption of government restrictions on alcohol sales in response to the third…

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Nestlé organic growth jumps 7.6% buoyed by higher commodity prices

SWITZERLAND – Swiss food manufacturing giant Nestlé is upbeat about its full year sales performance after an impressive 9-month run where organic sales jumped 7.6%, beating estimates by analysts.  Nestlé attributed the growth to continued momentum in retail sales, steady recovery of out-of-home channels, increased pricing, and market share gains.  Growth for the food company was broad-based across most geographies and categories with the developed markets delivering an organic growth of 7.1% and emerging markets posting a growth of 8.3%.   “We are pleased with Nestlé’s strong organic growth in the…

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Tiger Brands receives approval for secondary listing on A2X Markets

SOUTH AFRICA – South Africa’s largest food manufacturer, Tiger Brands, has announced that its ordinary shares will be listed and traded on alternate exchange, A2X Markets on 26 October 2021. Tiger Brands, with brands including All Gold, Black Cat, Albany, Koo and Jungle Oats, would retain its primary listing on the JSE and its issued share capital would be unaffected by its secondary listing on A2X. “Our listing on A2X provides our shareholders with the choice to transact our shares on an additional platform and capture the benefits it offers.…

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Tata Coffee Q2 net profit rises 26.55% driven by value-added businesses

INDIA – Tata Coffee’s value-added business has yet again delivered top-line growth for the business, pushing quarterly profits 25.55% higher during the quarter ending September 30th.  According to a BSE filing by Tata, net profit for the September quarter rose to Rs 53.66 crore (US$7.153m) up from the Rs 42.40 crore (US$5.65m) that was recorded in the previous quarter.   Tata has attributed the growth to improved performance in the value-added businesses which comprises of production and sale of roasted, ground, and instant coffee brands globally.  Tata Coffee’s Plantations Vertical…

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Famous Brands makes new board appointment, expects sharp improvement in headline earnings

SOUTH AFRICA – South African restaurant franchisor, Famous Brands, has announced the appointment of Ms Busisiwe Mathe as an independent Non-executive Director to the Board of Directors of the company, effective from 20 October 2021. Busisiwe, who holds a B. Com Accounting and a Higher Diploma in Accounting from the University of Witwatersrand, is a Chartered Accountant and a registered member of the South African Institute of Chartered Accountants. She has held several leadership positions at PricewaterhouseCoopers (PWC) including as Chairperson of the South African Governing Board, member of the…

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