South Africa’s Tiger Brands has announced an extension of Tjaart Kruger’s tenure as CEO for an additional three years, underscoring the company’s commitment to stable leadership amid ongoing changes in the food and beverage industry trends.
Originally appointed on a 26-month contract last year following the departure of Noel Doyle, Kruger will now remain at the helm until the end of 2028. This decision reflects Tiger Brands’ recognition of Kruger’s effective management of the group’s long-term strategic turnaround plan. This includes initiatives such as the appointment of new executive managing directors for the six operating divisions, a revamped operating model, and enhancements in company culture and employee engagement.
The board expressed confidence that extending Kruger’s role would provide “leadership certainty” for various stakeholders in the food and drink business and ensure a robust foundation for succession planning. The statement highlights, “The board is looking forward to Tjaart’s continued dedication and expertise. We believe he will lead the company to greater success in enhancing shareholder value.”
Tjaart Kruger stepped into the CEO role during a challenging time for Tiger Brands, which reported a profit warning and restructuring of its portfolio amid its annual results last financial year. In its latest financial report, the company demonstrated a 10% increase in revenue, reaching R37.4 billion ($2 billion) for the 12 months ending 30 September 2023, although it cautioned about potential growth challenges in the new fiscal year.
Tiger Brands saw a slight decline in revenue from R19.4 billion to R19.2 billion in the interim results for the six months ending 31 March 2024. This decrease was attributed to an 8% increase in prices, offset by a 9% reduction in volumes. The strategy to reduce reliance on sub-optimal promotions has led to varied results; for instance, while international sales grew, domestic volume experienced setbacks.
Moreover, the group’s operating income decreased by 3% to R1.3 billion, although profits for the period improved from R1.2 billion to R1.4 billion. Tiger Brands warned that the operating environment would likely remain challenging. “Preliminary macroeconomic indicators suggest heightened strain among South African consumers,” the company noted. The report further indicated restrained wage growth and potential difficulties due to increased consumer debt levels.
In conclusion, as the food and drink consumer trends continue to evolve, Tiger Brands is strategically navigating these changes under Kruger’s leadership, showcasing resilience and adaptability in a competitive landscape.
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