Further re Interim Results

Tiger Brands Ld
18 May 2000


TIGER BRANDS POSITIONED FOR GROWTH
Thursday, 18 May 2000: The interim results posted by Tiger Brands Limited
('Tiger'), formerly Tiger Oats Limited, reflect the impact of the group's
strategic positioning into a branded food and healthcare products entity. As
an integral part of this strategy the minorities of Beacon Sweets and Adcock
Ingram were acquired and a number of non-core businesses were disposed of.
Tiger's managing director, Nick Dennis, says the short term impact of these
divestments has been to limit the growth in turnover to 1% and in operating
income to 9%. 'More importantly, however, turnover and operating income from
continuing operations increased by 14% and 13% respectively.' 
Net income for the period at R464,7 million rose 7,4% on last year's R432,7
million, producing a 9% increase in headline earnings per share.
Since September 1999, Tiger has disposed of Island View Shipping, its 50%
stake in The Cold Chain, and its 50% interest in SA Bulk Terminals  - the
latter two being subject to approval by the Competition Commission. The Marine
Oil Refineries business in Cape Town has also been closed.  Decisions in
principle have been taken to dispose of both Golden Lay Farms and Tiger's 30%
interest in Jumbo Cash & Carry. 
Pre-tax profits were impacted by interest incurred on the funding of the
December 1999 Adcock Ingram transaction, valued at R3,3 billion, the
acquisition of Lagap Pharmaceuticals in October 1999 and the Langeberg
minorities towards the end of the prior financial year end, resulting in a
R133,4 million upward swing in net interest paid. However, this was largely
offset by a R90 million reduction in the share of profits attributable to
outside shareholders.
Dennis points out that the results of several businesses previously disposed
of are included in the prior comparative figures, which distorts comparisons.
These disposals included the entire fresh meat operations (which were formerly
part of ICS), Logos Agvet, the 35% interest in The Fedics Group, the 50%
interest in Continental Oil, the 50% interest in Maydon Wharf Storage and
Island View Shipping.  
Commenting on operational performances during the interim reporting period,
Dennis says the Food Brands division, excluding discontinued operations, grew
operating profit by 28% on a 9% increase in turnover. 'This was a particularly
pleasing result, given the difficult trading conditions and the disruption in
certain areas arising from the unusually heavy summer rain,' he says.  'Among
the highlights were the turnarounds achieved in several businesses, notably
Beacon which is now trading profitably; DairyBelle; and the baking operations
where significant losses have been turned into marginal profits through the
closure of loss-making bakeries. The losses in our maize-milling operations
have also been substantially curtailed'.
He adds that Oceana Fishing Group and Sea Harvest improved headline earnings
per share by 35% and 5% respectively, despite catch rates in both South Africa
and Namibia being lower than in 1999. Langeberg , County Fair, King Food and
Jungle Oats also produced good results. Notwithstanding strong volume growth,
Tastic's results were marginally below the previous year due to the deliberate
decision to reduce prices on premium brands in order to offer better value to
the consumer.
In the Healthcare division, Adcock Ingram produced good results for the first
six months, recording 16% growth in operating profit on a 29% increase in
turnover. These results were favourably influenced by the acquisition of the
UK-based pharmaceutical business, Lagap Pharmaceuticals.
In contrast, the Agri-Poultry division turned in a disappointing 2% decline in
operating profits. The satisfactory performances of Meadow Feeds and the
poultry operations were affected by the continuing losses incurred by Golden
Lay Farms, confirming the decision to dispose of the egg business.
'Negotiations for the sale of Golden Lay Farms are well under way and should
be concluded within the remaining six months of the year,' reports Dennis.
The 9% growth in operating income achieved by the Wholesaling division is
attributable primarily to the strong performance of the Spar Group, which
benefited from growth in new stores and an increase in market share. 
Income from Tiger's associate companies has also grown well following a
recovery at Enterprise Foods and a sound performance by Chilean-based Empresas
Carozzi, a food company in which Tiger holds a 20% stake. ConAgra Malt, the
malt and barley joint venture with ConAgra Incorporated of the USA in which
Tiger holds a 50% interest, reported a disappointing performance as a result
of continued pressure on volumes and margins.
Dennis believes that the reconfigured group is stronger and better focused.
'Provided there is no reduction in consumer spending, I am confident that
performance levels will be sustained in the second half of the year,
translating into further real growth in earnings from continuing operations,'
says Dennis. 'Tiger is well positioned on its journey towards realising its
stated strategic intent of becoming the world's most admired food and
healthcare company in emerging markets. 
'Our basket of brands has already given us a leading position in food and
healthcare in Southern Africa; as well as enabling us to focus on our
selective globalisation initiatives, which are directed at the South American
market. These factors, together with the proven effectiveness of our
management teams, will take us forward in a position of strength.'

Issued by:           Sasani Communications
                     Lisa van Hoogstraten
                     Tel:       [phone]
                     Cell:       083 448 6008
On behalf of:        Tiger Brands
                     Ian Isdale
                     Tel:       [phone]

Date:                Thursday, 18 May 2000