Year End Results

Tiger Brands Ld
16 November 2000


Group results for the year ended 30 September 2000
Tiger Brands Limited (Formerly Tiger Oats Limited)
(Registration number 1994/017881/06)
(Incorporated in the Republic of South Africa)

Turnover from continuing operations up 14%
Operating income from continuing operations up 11%

The audited results of the Group for the year ended 30 September 2000 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 that an investment,
previously accounted for as a joint venture is now accounted for as an
associate. The prior year figures have been restated, where appropriate.

REVIEW OF OPERATIONS
Tiger Brands achieved satisfactory results for the year ended 30 September
2000, increasing headline earnings per share by 10%.

Following the disposal of a number of non-core businesses over the past 18
months, growth in operating income was limited to 6%. Details of these
disposals have previously been reported to shareholders. After these
divestments, turnover and operating income from continuing operations
increased by 14% and 11% respectively.

This growth was achieved despite fundamental shifts in consumer spending
patterns, influenced by the growth in gaming, cell phone utilisation and the
introduction of a national lottery. The company is responding to these
challenges by concentrating on products aimed at those areas where there is
less scope for discretionary expenditure. In this environment value brands
play a significant role and Tiger Brands' focus on value-added branded
products has resulted in a very satisfactory increase of 4,6% in food volumes.
The acquisition of the full ownership of the Adcock Ingram business during
December 1999 has resulted in a number of significant changes to the income
statement. These comprise a change from net interest received of R41,3m in
1999 to net interest paid of R360,4 m in 2000 and a R255,7m reduction in the
share of profit attributable to outside shareholders. The acquisition has also
had the effect of reducing headline earnings per share in the current year by
4%. Positive benefits are expected to flow to shareholders from the 2001
financial year.

The balance sheet and gearing ratio have in the short term been adversely
affected by the approximately R3,3 billion that was raised to finance the
acquisition of Adcock Ingram and the concomitant reduction of shareholders'
equity by R2,8 billion, being goodwill written off in terms of Tiger's
accounting policy.  Tiger will benefit from the enhanced cash flows which will
restore balance sheet gearing to more acceptable levels.  Notwithstanding the
current high balance sheet gearing, the interest cover level at five times is
acceptable. 

Food Brands
Assisted by the encouraging increase in volumes over last year, Food Brands
performed well, increasing operating profit from continuing operations by 21%.

A particularly pleasing performance was recorded in Confectionery which
achieved a significant turnaround in profitability. The sorghum beverage
business achieved strong growth, benefiting from expansion of its product base
including the addition of the Mnante brand.

The Maize meal business returned to profitability after utilising the balance
of high-priced maize carried over from the previous year. Significant progress
was made in Baking where a small profit was recorded after several years of
losses. 

The Rice business recorded significant growth in volumes, albeit at reduced
margins. Volumes in the premium Tastic brand have benefited from the new
pricing strategy. Growth was also recorded in economy brands.

The Culinary business which primarily comprises the former Langeberg
operations, produced a good overall performance, with satisfactory growth in
local sales volumes and a strong contribution from exports aided by the
depreciation of the Rand. 

Satisfactory growth in headline earnings of 14% was achieved by Sea Harvest.
Subject to Court approval, Sea Harvest will be de-listed from the J.S.E with
effect from the close of business on 1 December 2000. This follows an offer of
R7,25 per share to Sea Harvest minority shareholders which offer was approved
by the requisite majority at a special meeting of Sea Harvest shareholders
held on 14 November 2000.

The Oceana Group produced a 30% increase in headline earnings, which matched
an increase in operating profit of 29%. The group produced very good results
across its fishing, cold storage, canned foods and trading activities.
Dairybelle achieved good profit growth in both milk and cheese categories.

Healthcare Brands
Faced with difficult trading conditions the Healthcare Brands division
performed below expectations, recording an increase of just 4% in operating
income.  The operating margin declined to 31% (1999 : 37%) primarily as a
result of a change in the composition of group turnover and operating profit
following the acquisitions of Lagap Pharmaceuticals (a generics distributor
based in the UK), Sterilabs, Biogel and the Bristol Myers range of consumer
products.

At Pharmaceuticals, turnover growth was subdued partly due to the effects of a
mild winter but also due to continued delays in the introduction of new
products caused by the ongoing backlog in the regulatory process.  Although
margins came under increasing pressure in Critical Care's core business, the
overall performance was pleasing, benefiting in particular from the inclusion
of Sterilabs for a full year and also the addition of Biogel. Turnover and
operating income in the Consumer division was adversely affected by lower
consumer spending.

Spar
Spar has once again achieved good organic growth assisted by a combination of
new store openings and upgrades of existing stores. There are now over 700
Spar franchised outlets in the southern Africa region with further growth
anticipated in the future.

Agri-Poultry 
Operating profit from continuing operations increased by 10%. All operations
performed satisfactorily, although Ross Poultry Breeders experienced a decline
in operating income resulting from lower sales volumes of broiler parent
stocks.

Agri-Poultry Unbundling 
As part of the ongoing focus by Tiger Brands on its core activities, the
company intends to unbundle its interests in the Agri-Poultry industry.  A
more detailed notice in this regard will be published in the near future.
This unbundling will result in Tiger Brands being a streamlined and focused
company, with its core activities concentrated on its three main pillars
comprising Food Brands, Healthcare Brands and Spar.

Until such time as a detailed announcement is made, shareholders are advised
to exercise caution when dealing in their Tiger Brands shares.

Associates
The share of profits from Associates reflected good growth, with the inclusion
of Chilean-based food operation Empresas Carozzi for a full twelve months and
an improved performance from Enterprise Foods.

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 10%
over the previous year.

Prospects
With its focus now clearly on Food Brands, Healthcare Brands and Spar,
together with its strong category management capabilities and good customer
relations, Tiger Brands is confidently expecting to deliver further real
growth in earnings in the year ahead. 
For and on behalf of the Board

R A WILLIAMS                N DENNIS 
Chairman                    Managing Director          17 November 2000

GROUP INCOME STATEMENT
                                    Year ended
                                   30 September
                      Notes      2000        1999       Change 
                                  Rm          Rm            %
Turnover                     18 149.4    18 290.7           (1)
Continuing operations        17 855.9    15 641.1           14
Discontinued operations         293.5     2 649.6
Operating income
before interest               1 716.2     1 612.7           6
Continuing operations         1 704.1     1 541.7           11
Discontinued operations          12.1       71.0
Dividend income                  37.1        42.9
Interest (paid)/
received, net                  (360.4)       41.3
Income before taxation
and abnormal items             1 392.9     1 696.9          (18)
Abnormal items             1     (52.3)       69.6
Income before taxation         1 340.6     1 766.5
Taxation                         391.3       526.4
Income after taxation            949.3     1 240.1  
Share of associate 
companies' income                 99.8        83.7           19
Income after taxation
including 
associate companies            1 049.1     1 323.8
Attributable to
outside shareholders 
in subsidiaries                   91.2       346.9
Net income for the year          957.9       976.9
Number of ordinary shares 
in issue (000's)               165 643     165 442
Weighted average
number of ordinary 
shares on which
headline earnings 
and net income
per share are 
based (000's)                 165 562     165 290
Headline earnings
per ordinary 
share (cents)             2     601.8       548.4           10
Dividends per
ordinary share (cents)          213.0       194.0           10
Net income per
ordinary share (cents)          578.6       591.0
NOTES
                                     Year ended
                                    30 September
                                 2000        1999
                                   Rm          Rm
1. Abnormal items
Cost of discontinued
operations                       (42.0)      (51.3)
(Loss)/profit on
disposal of land and
buildings                         (2.4)       12.4
(Loss)/profit on change
of interest in subsidiaries, 
associates and other investments  (4.6)      113.5
Other                             (3.3)       (5.0)
Abnormal (loss)/profit
before taxation                  (52.3)       69.6
Taxation                          11.9         5.5
Minority share of
abnormal items                   (0.2)       (0.4)
Abnormal (loss)/profit
attributable to shareholders 
in Tiger Brands Limited          (40.6)      74.7
2. Determination
of headline earnings
Net income per
income statement                 957.9       976.9
Adjusted for:
Losses on sale or
discontinuation of operations     41.4        52.7
Profits on sale
of fixed assets                   (3.9)       (4.4)
Losses/(profits) on
change of interest in
subsidiaries, 
associates and other
investments                        1.0      (118.7)
Headline earnings                996.4       906.5
GROUP BALANCE SHEET
                                       As at
                                    30 September
                                 2000        1999
                                  Rm          Rm
Capital employed
Interest of
ordinary shareholders             893.8     3 260.1
Preference share capital            1.1         1.1
Interest of outside
shareholders in subsidiaries       119.1     1 085.8
Shareholders funds               1 014.0     4 347.0
Deferred taxation                  100.2        97.2
Borrowings
(long and short term)           4 278.9     1 195.4
                                5 393.1     5 639.6
Employment of capital
Fixed assets and investments    3 619.1     3 049.1
Deferred taxation                 144.8       115.3
Current assets                  5 544.2     6 491.8
Inventories                     1 773.6     1 679.1
Debtors                         2 609.8     2 588.6
Cash resources                  1 160.8     2 224.1
Total assets                    9 308.1     9 656.2
Creditors, provisions and
shareholders for dividend       3 915.0     4 016.6
                                5 393.1     5 639.6
GROUP CASH FLOW STATEMENT
                                     Year ended
                                    30 September
                                 2000        1999
                                  Rm          Rm
Cash operating profit           2 068.6     1 955.5
Working capital changes          (184.2)      (58.0)
Cash generated
from operations                1 884.4     1 897.5
Dividends received                47.6        46.5
Net interest (paid)/received    (360.4)       41.3
Taxation paid                   (504.2)     (621.0)
Cash available
from operations                1 067.4     1 364.3
Dividends paid                  (345.4)     (432.3)
Net cash inflow from
operating activities              722.0       932.0
Net cash outflow from
investing activities           (4 797.6)   (1 429.6)
                               (4 075.6)     (497.6)
Net cash inflow from
financing activities            3 040.8       435.7
Net decrease in cash
and cash equivalents           (1 034.8)      (61.9)

Group statement of changes in equity
                        Share         Non-
                      capital distributable    Retained
                  and premium     reserves     surplus     Total
                          Rm          Rm          Rm       Rm
Balance at
30 September 1998 
as previously reported   677.0       410.0     2 881.9   3 968.9
Change in respect
of Oceana Group Limited
deferred tax                 -            -        16.6      16.6
Restated balance         677.0        410.0     2 898.5   3 985.5
Shares issued             15.1            -           -      15.1
Foreign currency
translation 
reserve movement             -         (1.4)          -      (1.4)
Transfers
between reserves             -         (6.1)        6.1         -
Legal and
consolidation reserves       -          3.3           -       3.3
Goodwill and trademarks
written off                  -            -    (1 398.0) (1 398.0)
Retained earnings
for the year 
as restated                  -            -       655.6     655.6
Balance at
30 September 1999        692.1        405.8     2 162.2   3 260.1
Shares issued              8.7            -           -       8.7
Foreign currency
translation
reserve movement             -        (57.0)          -    (57.0)
Write down of
foreign investments          -       (116.8)          -   (116.8)
Transfers between reserves   -         55.7       (55.7)       -
Goodwill and
trademarks written off       -            -    (2 806.3) (2 806.3)
Retained earnings
for the year                 -            -       605.1     605.1
Balance at
30 September 2000        700.8        287.7       (94.7)    893.8

http://www.tigerbrands.co.za

Directors
Messrs RAWilliams (Chairman), D E Cooper (Deputy Chairman)
N Dennis (Managing Director) (British),B HAdams, 
C A Apsey, DDB Band, B P Connellan, M H Franklin*, 
WRCHolmes*, Ms W Y N Luhabe, JHMcBain* (British), ACNissen, 
M C Norris*, I B Skosana, R V Smither*, J L van den Berg, C F H Vaux*, 
*Executive directors

Company secretary
I W M Isdale
Registered office
85 Bute Lane, Sandown 
Sandton, South Africa

Postal address: 
POBox 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: 
POBox 1053, Johannesburg, 2000 
United Kingdom: 
Computershare Services plc, POBox 82, 
Caxton House 
Redcliffe Way, Bristol, BS99 7NH