South Africa’s biggest food producer Tiger Brands said on Wednesday it took a 557 million rand ($30.86 million) impairment charge on its export businesses as trading conditions remained difficult amid the coronavirus pandemic.
The impairment led the owner of Jungle Oats and Tastic rice to revise its earnings per share forecast for the six-months ended March 31 to between 74 per cent and 77 per cent lower than that in the same period last year, from a previously guided decline of 35 per cent.
Tiger Brands kept its forecast for headline earnings per share, the main profit gauge in South Africa, unchanged at a decline of as much as 36 per cent.
The impairments relate mainly to the firm’s export businesses, namely Davita, a powdered soft drinks and seasoning producer, the Deciduous Fruit business and its investment in Nigerian associate, UAC Foods, it said.
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