JSE-listed Tiger Brands’ share price fell by nearly 9.8% on Thursday morning after it announced that its earnings per share (EPS) and headline earnings per share (HEPS) for the financial year to end September 30 are likely to decrease by 22% to 37% year-on-year.
It reported EPS of R19.15 and HEPS of R21.61 for the 2017 financial year.
The lower EPS and HEPS reflect a continuation of the challenging consumer and competitive environment, with ongoing volume and pricing pressures, as well as significant cost increases derived from the adverse movement in the rand, fuel price increases, labour settlements and higher administered costs, which have yet to be recovered in selling price increases, the company stated.
Additionally, Tiger Brands’ financial performance was also impacted by the recall of products and the suspension of operations involving some of the company’s value-added meat processing facilities.
The company also faces potential further impairments in respect of intangible assets in the personal care category.
Tiger Brands expects to release its results on November 22.