Tiger Brands has pulled back from plans to dispose of its underperforming King Foods unit, opting instead to retain and reposition the business after an operational turnaround helped lift the group’s first-half earnings.
The JSE-listed producer of products such as Black Cat peanut butter and Ingram’s Camphor had previously flagged King Foods as non-core after years of weak performance and an uncertain growth trajectory.
But management now says improved performance and product mix as well as a clearer strategic role for the division have pushed it back into profitability.
“We did lose our way in that business … but with the work that’s happened over the past two years in getting the fundamentals right, we’re very comfortable to welcome it back into the portfolio,” CEO Tjaart Kruger said during the financial results presentation.
Housed in the Grains division, King Foods’ brands include King Korn Morvite, King Korn Mabele and King Korn Malt. It was a key contributor to the performance of that division, where operating income surged 91.7% to R441m and margins nearly doubled to 12.7%.
Thushen Govender, CFO of Tiger Brands, pointed to strong performance across the Grains portfolio, including the Jungle Oats brand, where pricing strategies broadened demand beyond its traditional winter consumption cycle.
Tiger Brands reported revenue of R17.9bn, up 1.3% for the six months to March, with volume growth of 2.6% offsetting price deflation of 1.3%.
All major business units reported growth in operating income, with Grains and Culinary leading the pack. Grains revenue of R3.5bn was driven by volume growth of 6.9%, offset by price deflation of 10.8% in soft commodities. Operating income increased by 91.7% to R441m.
Revenue in the Culinary division, which houses Black Cat, Purity and All Gold brands, increased by 8.7% to R5.7bn, driven by 6.0% volume growth and 2.7% price inflation.
Operating income at R562m, which was 26.9% higher than the prior year.
Snacks, Treats and Beverages (STB), with products such as Oros and Energade, reported a 1.2% increase in revenue to R3.3bn, with volume growth of 1.2% driven by candy and ready-to-drink dilutables.
Milling and baking revenue increased by 0.6% to R4.2bn, driven by volume growth of 0.3% and price inflation of 0.3%. Operating income increased 15.3% to R376m and margins. The division includes Albany bread and Golden Cloud baking products.
In the underperforming division, Home and Personal Care (HPC), revenue fell 9.5% to R1.3bn, driven by volume declines of 10.4% in both Home Care (impacted by wet weather reducing peak pest season demand) and Personal Care (impacted by continued competitive intensity).
HPC, which houses Doom and Ingram’s Camphor, reported a 1.7% increase in operating income of R297m. Tiger Brands said recovery of Personal Care is a priority in the second half of its 2026 financial year, with new products and a reduction of seasonal dependency of the body care range.
Kruger said the results reflected a deliberate strategy centred on affordability — a critical factor in a constrained South African consumer market — and rigorous operational discipline.
“The South African consumer bears the heaviest burden during challenging economic times … we remain committed to driving affordability and relevance in everything we do,” he said.
Looking ahead, Kruger cautioned that the second half could bring increased macroeconomic pressure, but said the company remained on track to meet guidance.
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