Maker of Jungle Oats and Tastic rice Tiger Brands says that sustained domestic demand for some of its products, as well as improvements in some of its exports markets, may result in better than expected financial performance.
In a trading update issued on Monday, Tiger Brands said it plans to release its financial results for the year ended 30 September 2020, on or about 20 November 2020.
It revised its projections for its earnings from the previous trading update issued in August.
Notably Headline earnings per share (HEPS), is expected to be between 27% and 30% lower than the 1 322 cents reported last year. This is better than the previous projection of HEPS between 35% and 40% lower from last year's 1 322 cents.
The improvement in HEPS is due to "better than anticipated" operating income performance in the second half of the year. This is thanks to "virtually no disruptions" to the supply chain during August and September as Covid-19 infections slowed "significantly".
The group also noted sustained domestic demand for breakfast offerings, pasta, groceries, home care and an improvement in snacks and treats.
"In addition, improved performances were achieved from Cameroon and other export markets," it said.
"Profitability also benefited from improved cost and efficiency management in the last quarter," the report read.
Operating income, however, for the second half of the year, is still likely to be lower than the same period last year.