Tiger Brands shares take hit on ‘bleak future’

DURBAN – Tiger Brands slid nearly 6percent on the JSE yesterday after it slammed the brakes on dividend payments because of what it said would be a bleak future following a difficult trading period in the first half of the financial year as profits crashed.

The packaged goods company said it would be forced to implement massive job cuts as lockdown restrictions weighed on its supply chain and disrupted margins.

Chief executive Noel Doyle said Tiger Brands expected coronavirus-related costs to hit profits in the second half, due to the weakness of the rand, global supply chain disruptions and additional costs incurred during the lockdown.

“These costs, together with the effect of government regulations on pricing during the national disaster period, may have an impact in excess of R500million on profitability,” Doyle said.

Boyle said the group might resort to some cost-cutting measures, which included possible job losses. However, he said it was difficult to provide the exact number of jobs that would be lost.