SOUTH AFRICA – Tiger Brands Limited, a South African packaged goods company, has extended the tenure of newly-appointed CEO and executive director, Tjaart Kruger, for an additional three years.
In October, the board of Tiger Brands appointed Kruger as CEO and executive director of Tiger Brands for a 26-months period starting on November 1, 2023.
Kruger will now serve as chief executive until 31 December 2028.He replace Doyle at a time when the company was South African agri-food industry faces numerous challenges.
They include declining consumer purchasing power and inconsistent energy supply, largely due to Eskom’s operational issues.
To address these concerns, Tiger Brands announced a commitment of US$6.3 million to manage power cuts by the public electricity company.
Tiger Brands said: “The decision is premised on Tjaart’s positive progress to date with the group’s long-term strategic turnaround plan, including the appointment of new executive managing directors for the six operating divisions, implementation of a new operating model, as well as progress with regards to the group culture and staff engagement.”
“”The group added it “believes that this decision will provide leadership certainty to Tiger Brands’ multiple stakeholders and the necessary runway for the group’s succession plans.”
In the company’s most recent interim results, Tiger Brands’ revenue fell from R19.4bn to R19.2bn in the six months to 31 March 2024. The business said at the time the fall was “driven by price inflation of 8%, offset by a reduction in volumes of 9%.
In divisions such as Bakeries, the loss in volume was a deliberate strategy to reduce the reliance on sub-optimal promotional activity and improve price realisations. Volume growth in exports was offset by declines in the domestic business.
Meanwhile, group operating income decreased 3% to R1.3bn. However, profit for the period was up from R1.2bn to R1.4bn.
Tiger Brands said the operating landscape is likely to remain challenging. Preliminary macroeconomic indicators suggest heightened strain among South African consumers.
While there has been a nominal uptick in employment, wage growth has notably decelerated, particularly amid a surge in inflation, disproportionately impacting low-income consumers.
“…Given the high levels of consumer indebtedness and limited prospects for substantial labour market improvements within a subdued economic backdrop, it is anticipated consumers will continue to face significant hurdles,” Tiger explained.
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