Tiger Brands, which has spent the past year doing damage control in the wake of the listeriosis outbreak of 2018, says it has made “good progress” in its plans to sell its Value-Added Meat Products (VAMP) division.
The company’s shares fell by over 7% on Wednesday morning after it released a trading update. It said its headline earnings – the best measure of profitability as it focuses only on operations and ignores once-off transactions – are expected to be between 30% and 37% lower than the 762 cents reported in the six months to March 2019.
Earnings per share for all operations in the are expected to be at least 36% lower in the six months to March 2020, compared to the 864 cents reported over the same period last year.
The VAMP business includes brands such as Enterprise, Renown, Mielie-Kip and Bokkie. It is the same business that was forced to temporary close manufacturing facilities due to a listeriosis outbreak in 2018.
Tiger Brands said in a trading statement on Wednesday that it has received several non-binding indicative offers for the VAMP business, and has started formal due diligence processes with certain bidders. The food producer, which also owns brands including, Jungle Oats, Purity and Albany Bread, said it would likely conclude the sale of the VAMP divisions after March 31, 2020.