Final Results

Tiger Brands Ld
21 November 2001


Tiger Brands Limited 
(Registration number 1944/017881/06) 
(Incorporated in the Republic of South Africa)
Share code: TBSP    
ISIN code: ZAE 000023578

Group results for the year ended 30 September 2001

The audited results of the Group for the year ended 30 September 2001 are set
out herein. This report has been prepared in compliance with South African
Statements of Generally Accepted Accounting Practice. Accounting policies are
consistent with those of the previous year except as set out in note 1.

* Turnover from continuing operations up 11%
* Operating income from continuing operations up 16%

GROUP INCOME STATEMENT
                                              Year ended
                                             30 September
                                    Notes       2001           2000*   Change
                                                  Rm              Rm          
 %
Revenue                                     16 840,5        16 246,5        4 
  Continuing operations                     16 463,3        14 828,2       11 
  Discontinued operations                      377,2         1 418,3 
Operating income                             1 697,5         1 530,4       11 
  Continuing operations                      1 689,4         1 462,4       16 
  Discontinued operations                        8,1            68,0 
  Income from investments                       29,0            33,1 
  Net financing costs                         (395,8)         (316,7)
Income before taxation 
  and abnormal items                         1 330,7         1 246,8        7 
  Abnormal items                      2        (40,4)          (53,6)
Income before taxation                       1 290,3         1 193,2 
  Income tax expense                           393,0           344,0 
Income after taxation                          897,3           849,2 
  Income from associates                       121,9            99,8       22 
Net income of the group                      1 019,2           949,0 
Minority interest and 
preference dividends                            30,9            90,1 
Income attributable 
to ordinary 
  shareholders in 
Tiger Brands Limited                           988,3           858,9       15 
Number of ordinary 
shares in issue (000's)                      165 959         165 643 
Weighted average number 
  of ordinary shares 
  on which headline 
  earnings and earnings
  per share are based (000's)                165 758        165 563 
Headline earnings per ordinary
  share (cents)                      3         611,5          542,8       13 
Fully diluted headline earnings 
  per ordinary share (cents)                   607,9          540,3
Earnings per ordinary share (cents)            596,2          518,8 
Fully diluted earnings per 
  ordinary share (cents)                       592,7          516,4
Dividends per ordinary share (cents)           213,0          192,1 ^     11
       
*  Pro-forma-excluding the Agri-Poultry interests which were unbundled with
effect from 1 October 2000
^  Pro-forma at September 2000 based on the actual dividend cover for the year
ended 30 September 2000

NOTES
                                                              Year ended
                                                             30 September
                                                          2001         2000
                                                            Rm           Rm
1. Change in accounting policies

1.1 The company has changed its accounting policy for goodwill and other
intangible assets. Whereas goodwill and other intangible assets were
previously written off to distributable reserves,they are now capitalised and
amortised over their expected useful lives in terms of AC129. This policy has
been applied prospectively with effect from 1 October 2000 (i.e. prior year
figures have not been restated).

1.2 Provisions have been accounted for in accordance with AC 130.

This has resulted in an adjustment to opening retained income as disclosed in
the statement of changes in equity as follows:

Reversal of excess provisions brought forward                          87,8 
Reversal of deferred tax on excess provisions                          (3,0)
                                                                     --------
Adjustment to opening retained income                                  84,8
                                                                     --------
2. Abnormal items

Cost of discontinued operations                          (24,9)       (42,0)  
Loss on disposal of land and buildings                   (41,0)        (2,1)
Profit (loss) on change of interest in 
subsidiaries, associates and other investments            23,9         (6,2)
Other                                                      1,6         (3,3)
Abnormal loss before taxation                            (40,4)       (53,6) 
Taxation                                                  (0,4)        11,8 
Minority share of abnormal items                          (0,9)        (0,2)
Abnormal (loss)/profit attributable to 
shareholders in Tiger Brands Limited                     (41,7)       (42,0)

3. Determination of Headline earnings

Net income per income statement                          988,3        858,9
Adjusted for:
Losses on sale or discontinuation of operations           24,0         42,4
Losses/(profits) on sale of fixed assets                  26,9         (4,2)
Losses/(profits) on change of interest in 
subsidiaries, associates and other investments           (18,6)        (5,0) 
Other including abnormal profits 
included in income from associates                        (7,0)         6,6
Headline earnings                                      1 013,6        898,7

GROUP CASH FLOW STATEMENT
                                                           Year ended
                                                          30 September
                                                          2001       2000*
                                                            Rm          Rm
Cash operating income                                  1 962,4     1 838,6 
Working capital changes                                  (18,0)     (160,1)
Net financing costs                                     (399,2)     (283,4)
Dividends received                                        43,4        47,6 
Taxation paid                                           (421,4)     (475,8)
Cash available from operations                         1 167,2       966,9 
Dividends paid                                          (390,9)     (319,2)
Net cash inflow from operating activities                776,3       647,7 
Net cash inflow/(outflow) from investing activities       31,1    (4 600,0)
Net cash inflow/(outflow) before financing activities    807,4    (3 952,3)
Net cash (outflow)/inflow from financing activities     (125,7)    3 004,7 
Net increase/(decrease) in cash and cash equivalents     681,7      (947,6)
* Pro-forma-excluding the unbundled Agri-Poultry interests

GROUP BALANCE SHEET
                                                               As at
                                                           30 September
                                                          2001       2000
                                                            Rm         Rm
ASSETS
Non-current assets                                     3 570,9    3 267,7 
Property,plant & equipment                             1 492,6    1 551,6 
Goodwill                                                  30,9 
Investments                                            2 047,4    1 716,1 
Current assets                                         6 083,0    5 080,8 
Inventories                                            1 610,5    1 580,2 
Accounts receivable                                    2 524,1    2 215,1 
Bank and cash resources                                1 948,4    1 285,5 
TOTAL ASSETS                                           9 653,9    8 348,5 
EQUITY AND LIABILITIES
Capital and reserves                                   1 678,6      637,4 
Minority interest                                        102,1      119,1 
Total non-current liabilities                          2 855,7    3 104,2 
Deferred tax liability                                    55,9       41,9 
Long term borrowings                                   2 799,8    3 062,3 
Total current liabilities                              5 017,5    4 487,8 
Short term liabilities                                 1 223,3    1 113,5 
Accounts payable including 
  shareholders for dividend                            3 794,2    3 374,3 
TOTAL EQUITY AND LIABILITIES                           9 653,9    8 348,5 
* Pro-forma-excluding the unbundled Agri-Poultry interests

Group statement of changes in equity
                               Share          Non-
                         capital and  distributable     Retained 
                 Notes       premium       reserves       income       total
                                  Rm             Rm           Rm          Rm
Balance at 
30 September 2000 
(Pro forma)                    652,2          287,7        (302,5)     637,4 
Adjustment to 
opening balance   1.2                                        84,8       84,8 
                               652,2          287,7        (217,7)     722,2 
Shares issued                   12,4                                    12,4 
Foreign currency 
translation reserve movement                   44,5                     44,5 
Transfers between reserves                     34,5         (34,5)       0,0 
Deferred surplus on revaluation 
of financial instruments                        5,6                      5,6 
Movements on associates 
not taken to income                            20,9                     20,9 
Prior year goodwill 
written off - now realised                                  238,1      238,1 
Income attributable to 
ordinary shareholders                                       988,3      988,3 
Dividends on ordinary shares                               (353,4)    (353,4)
Balance at 30 September 2001   664,6          393,2         620,8    1 678,6


Segmental analysis
                                            2001           2000*       Change
                                          Rm       %         Rm      %      %
Revenue 
- continuing operations
Food Brands                          8 512,1      52    8 039,2    54       6
Dry Groceries                        6 741,4      41    6 504,8    44       4 
- Cereals & Beverages                4 149,6      25    4 137,9    28       0 
- Culinary                           1 799,0      11    1 641,4    11      10 
- Confectionery                        792,8       5      725,5     5       9 
Perishables                          1 770,7      11    1 534,4    10      15 
- Fishing                            1 430,0       9    1 222,3     8      17 
- Dairy                                340,7       2      312,1     2       9 
Healthcare                           1 868,5      11    1 700,5    11      10 
- Pharmaceutical                       863,1       5      813,4     5       6 
- Consumer                             561,6       3      490,4     3      15 
- Critical Care & other                443,8       3      396,7     3      12 
Spar                                 7 075,4      43    6 028,5    41      17 
Other                                  137,3       1        6,8        
                                    17 593,3     107   15 775,0   106      12 
Intragroup Revenue                  (1 130,0)     (7)    (946,8)  (6)
                                    16 463,3     100   14 828,2  100       11 
Operating income 
- continuing operations
Food Brands                            813,9      48      611,1   42       33 
Dry Groceries                          547,6      32      402,8   28       36 
- Cereals & Beverages                  298,6      18      200,6   14       49 
- Culinary                             173,4      10      139,0   10       25 
- Confectionery                         75,6       4       63,2    4       20 
Perishables                            266,3      16      208,3   14       28 
- Fishing                              241,3      14      186,5   13       29 
- Dairy                                 25,0       2       21,8    1       15 
Healthcare                             661,0      39      601,4   41       10 
- Pharmaceutical                       412,2      24      387,2   26        6 
- Consumer                             126,0       8       99,9    7       26 
- Critical Care & other                122,8       7      114,3    8        7 
Spar                                   239,9      14      203,5   14       18 
Other                                  (25,4)     (1)      46,4    3        1 
                                       689,4     100    1 462,4  100       16 

*       Pro forma - excluding the unbundled Agri-Poultry interests

REVIEW OF OPERATIONS

Tiger Brands achieved a pleasing result for the year ended 30 September 2001
increasing headline earnings per share by 13% in a highly challenging market.
Headline earnings from continuing operations reflected growth of 16%. The
results were favourably influenced by a strong second half performance which
benefited from further efficiency gains and the inclusion of an additional
week's trading in Food Brands and Spar. After eliminating the effect of the
additional week, the growth in headline earnings per share reduces to 10%. 

As part of the re-focusing by Tiger on its core brands, the Agri-Poultry
interests were unbundled during the year into a separately listed company
called Astral Foods Limited. The effective date of the unbundling was 1
October 2000. For comparative purposes the prior year figures have been
restated to exclude the Agri-Poultry results in order to provide financial
information which is relevant for the company after the unbundling.

As a consequence of the refocusing on its core activities, a number of
disposals took place during the year. These disposals included the company's
interest in Lagap Pharmaceuticals - the UK based generics wholesaler, the
49.9% interest in Pets Products (Pty) Ltd and the 30% interest in Jumbo Cash &
Carry (Pty) Ltd. Subject to the approval of the Competition authorities, the
company has sold to Nestle South Africa its 50% interest in Dairymaid-Nestle
(Pty) Ltd.

As reported at the half year, Tiger Brands is involved in a major change
process aimed at the achievement of profitable top-line growth through the
creation of a demand-driven synergised business. The process has as its
objective the generation of increased demand for the company's wide range of
branded Food and Healthcare products. The initial steps of this programme were
successfully completed during the year under review. This includes the
creation of a new business framework in terms of which the businesses are
being restructured according to newly defined consumer categories. The major
benefits of the programme will only be realised from the 2003 financial year.

Results

Total turnover and operating income increased by 4% and 11% respectively.
However, turnover and operating income from continuing operations rose by 11%
and 16% respectively, with the resultant operating margin improving to 10.3%
(9.9%). Profit before tax and abnormal items increased at a lower rate of 7%
as a result of a 25% increase in net financing costs. The higher interest
costs are due to the acquisition of the full ownership of Adcock Ingram during
December 1999. At the headline earnings level, the adverse interest effect is
offset by the lower share of profit attributable to outside shareholders.

Notwithstanding the unbundling of the Agri-Poultry interests, the balance
sheet was significantly strengthened during the year with net borrowings
reducing by R962 million and an amount of R779 million being added to ordinary
shareholders funds. This includes a recovery of goodwill of R238 million
written off in the previous year, relating to the disposal of Lagap
Pharmaceuticals.

Net cash flow from operating activities showed an increase of 20%.

Food Brands

Including the benefit of an additional week's trading in 2001, Food Brands
achieved an excellent 33% increase in operating income on a turnover growth of
6%. This strong result has been achieved by way of a general improvement in
performance across all the Food Brands operations. Good contributions have
been made through the turnaround in profitability in the Maize Meal and Bakery
operations. The rationalisation of the Bakery interests during the year has
resulted in the closure of a number of unprofitable bakeries. Bakeries
achieved a satisfactory profit for the year as a whole, after recording a loss
in the first six months. Maize Meal benefited from very favourable raw
material input prices.

The Cereals and Beverages business reflected a good improvement in operating
income of 49%. The improved performances in the Maize Meal and Sorghum Malt
categories that were noted at the half-year continued for the balance of the
year. The Rice category significantly improved its performance in the second
half of the year although volumes were marginally down on the previous year.
The Pasta category was positively affected by lower durum wheat prices and
improved volume growth.

The Culinary business, which comprises the former Langeberg operations, Colman
Foods and the Edible Oil and Margarine interests, reflected an operating
income growth of 25% on turnover growth of 10%. This result arose primarily
from improved operating efficiencies, higher export earnings as a result of
the decline in the value of the Rand and synergies achieved from
rationalisation.

The Confectionery business performed well with a 20% increase in operating
income. Particular focus was given to product innovation which was a
significant driver in the 9% turnover increase.

The Perishable businesses, comprising the company's fishing operations (73%
held Sea Harvest and 40% held Oceana) together with DairyBelle, improved
operating income by 28% on a turnover increase of 15%. The disposal of the 50%
interest in Dairymaid-Nestle referred to above, is effective from 1 April
2001. 

The Cheese and Butter category performed satisfactorily despite pressure on
cheese volumes.

Separately listed Oceana increased headline earnings by 20% with operating
profit improving by 24%. This result was a consequence of good contributions
from fish meal and oil, the Lucky Star brand, the lobster operations and
Commercial Cold Storage.

Sea Harvest achieved a strong operating profit growth with export earnings
impacted by the favourable Rand/Dollar exchange rate. However, hake sales were
negatively affected by below average catch rates in South Africa.

Healthcare Brands

Healthcare Brands achieved a 10% increase in both revenue and operating income
from continuing operations, during a period of re-investment and positioning
for growth. A strong performance by the Consumer business was partly offset by
modest profit growth at Pharmaceuticals and Critical Care.

The Pharmaceutical business improved performance in the second half of the
year after a disappointing first half. This improvement was largely due to the
benefits arising from increased investment in major brands such as Corenza C.
Growth continued to be hampered by the lack of new products, although a number
of new products have recently been launched. The full benefits of the new
product development programme will be evident from the 2003/2004 financial
years.

A very good result was achieved by the Consumer business with a 15% growth in
revenue giving rise to a 26% increase in operating income. This performance
was driven by strong growth in core brands such as Panado, Ingrams Camphor
Cream and Compral that resulted from a more focused marketing spend. Increased
operational efficiencies also contributed to the improved results.

The Critical Care business was adversely affected by the loss of a tender for
the supply of intravenous solutions. This was offset by growth in new business
which includes diagnostics, renal pharmaceuticals and hospital disposable
products. 

Spar

The Spar business continued its strong performance reflecting a turnover
increase of 17% with an operating income growth of 18%.

During the year, Spar further increased its share of the retail food market,
whilst a total of 51 stores were opened or converted to the Spar format
compared to 43 in the previous year.

Associates

Income from Associates improved by 22% compared to the previous year. This was
influenced by a substantial improvement in the performance of ConAgra Malt
which benefited from lower interest rates, increased operational efficiencies
and better raw material procurement. Chilean based Empresas Carozzi made a
good contribution following its successful acquisition of confectionery
manufacturer Ambrosoli.

The contribution from Enterprise Foods was below that of last year as a result
of the profits being fully taxed this year following the utilisation of its
remaining tax loss in the prior year. The results of Jumbo Cash & Carry have
been equity accounted up to 1 April 2001, being the effective date of sale. 

STRATE

Tiger Brands has been selected by the JSE Securities Exchange South Africa
('JSE') to transfer its issued share capital to the electronic STRATE
environment effective from 5 November 2001. In terms of the JSE's revised
listing requirements, the Tiger Brands move to STRATE is obligatory and will
result in participation in a sophisticated settlement process which equates to
international best practice.

The three significant dates in respect of the move to STRATE are:

5 November 2001 - Dematerialisation commenced;
26 November 2001 - Electronic trading commences;
3 December 2001 - Electronic settlement commences.

If you require further information regarding STRATE, they may be contacted at 
[phone] or at [e-mail].

Dividend

The company has declared a final dividend of 145 cents per share. This brings
the total dividend for the year to 213 cents per share, an increase of 11%
over the pro forma dividend of 192.1 cents per share in the previous year.

Prospects

The Food Brands category management programme is expected to have a positive
impact on top-line growth in the year ahead. Cost savings generated by the
programme, together with cost reductions from other initiatives underway
(which are mainly focused in the area of supply chain logistics), will
initially be re-invested in intellectual capital within market research, brand
and customer management, and research and development. As a result, the
benefits of the restructuring are only expected to have a meaningful impact on
the results from 2003 onwards.

In Healthcare Brands, the Pharmaceutical business is not expected to show a
meaningful improvement in performance until 2003, when it is anticipated that
a significant number of new products will be introduced to the market.
Spar has a number of initiatives underway aimed at driving top-line growth,
which include further store refurbishments.

It is important to note that the results in 2001 included an additional week's
trading at Food Brands and Spar, which will not occur again in 2002. In
addition, recent raw material price increases will put significant pressure on
maize meal and flour margins in the year ahead.

It is expected that in the 2002 financial year, Tiger Brands will achieve a
more modest rate of real growth in headline earnings per share.

By order of the Board
R A WILLIAMS       N DENNIS
Chairman           Chief Executive Officer

Website address: http://www.tigerbrands.com

Directors
Messrs R A Williams (Chairman), N Dennis (Managing Director) (British)
B H Adams, D D B Band, B P Connellan, D E Cooper, M H Franklin
J H McBain (British), A C Nissen, M C Norris, I B Skosana, R V Smither
J L van den Berg, C F H Vaux 

Company secretary
I W M Isdale

Registered office
85 Bute Lane, Sandown 
Sandton, South Africa
Postal address: 
PO Box 78056 
Sandton, 2146, South Africa

London office
St James Corporate
Services Limited
6 St James's Place
London
SW1A 1NP

Share transfer secretaries
South Africa:
Mercantile Registrars Limited
11 Diagonal Street
Johannesburg
2001
Postal address: 
PO Box 1053, Johannesburg, 2000 
United Kingdom: 

Computershare Services plc, PO Box 82, 
The Pavilions
Bridgwater Road, Bristol, BS99 7NH