The one positive of this, even if some of it is depressing, is that there'll be life on the other side, writes Adriaan Basson.
Tiger Brands witnessed declines in sales of non-essentials, including mayonnaise and canned veggies.
The food and beverage group says its current chief financial officer, Noel Doyle, has been appointed its new CEO with effect from February 1.
Food and beverage company Tiger Brands' headline earnings per share is down 17%, on the back of a difficult trading environment.
The class action brought against Tiger Brands following a listeriosis outbreak caused by some of its products, could take years before it finally gets to court.
Some 70% of consumers will buy a bigger pack if it's on promotion, and it offers value
In February, the court determined that Richard Spoor Attorneys could go ahead with its class action application representing more than 1000 people affected by the listeriosis outbreak that claimed over 200 lives.
There are some 1,000 claimants in the class action lawsuit triggered by Listeria traced back to Tiger Brands' Enterprise polony factory. If they are all successful in those claims, best-guess estimates suggest they will be paid between R100 million and R2 billion.
More than 200 people lost their lives due to the listeriosis outbreak which infected over a thousand people.
Tiger Brands is re-opening its meat products processing facility that was closed following a major listeriosis outbreak.
Tiger Brands share price slumped more than 10% after the food, home and personal care products maker warned that annual profits would be up to 37% lower than the previous year.
The food producer is expecting a drop in its headline earnings per share of up to 37% for the six months ended March 2020.
In otherwise downbeat results, Tiger Brands reported one bright spot.
It has received several bids for its processed meats business, which includes Renown and Bokkie.
Professional investors believe more could be heading (or pushed) to the door.
Tiger Brands said first-half profit fell as Africa’s biggest publicly traded packaged-food company battles to overcome weak economic growth and the aftermath of a deadly outbreak of listeriosis.
Tiger Brands, which had to recall cold meat products after a listeriosis outbreak early in 2018, says it has not yet received a summons for a class action suit.
Tiger Brands chief corporate affairs officer Mary Jane Morifi said the company would support the class action notice process to ensure that anyone with a legitimate claim can be informed of the class action.
Tiger Brands' financial results show that the company has been hammered by tough trading conditions, including the impact of a deadly listeriosis outbreak.
The price of polony initially fell by 14.4%, but has recovered slightly and is now 3.8% cheaper than in 2017.
Tiger Brands may never know how a strain of bacteria linked by the government to the world’s deadliest outbreak of listeriosis entered its factory, Bloomberg reports.
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