VOLUNTARY UPDATE ON THE IMPACT OF CIVIL UNREST ON TIGER BRANDS’ OPERATIONS
The current incidents of civil unrest, widespread looting and vandalism in Kwa-Zulu Natal (KZN) and parts of the Gauteng province have had a material impact on Tiger Brands’ operations, particularly in KZN. A number of our sites in KZN have been affected by acts of looting and vandalism resulting in damage to our Rice and Snacks & Treats operations. In relation to the affected sites, the extent of damage to property and infrastructure is subject to our ability to safely access the affected properties and is still to be determined. It is currently estimated that the loss of stock is in excess of R150 million. The loss of profit due to business interruption is still being quantified. The situation in KZN remains volatile, presenting a further risk to other Tiger Brands facilities in the area.
In addition, bakery operations and the distribution of bread have been suspended in the KZN region, whilst deliveries of bread in Gauteng have been affected by challenges in accessing certain areas as well as the closure of customer stores.
Tiger Brands’ immediate priority is the well-being and safety of its employees. Consequently, we have suspended operations at affected locations where our risk assessments concluded that it was prudent to do so and temporarily closed all our operations in KZN.
The Company has appropriate insurance cover and has notified its insurers accordingly. Coverage is subject to the terms and limits of the policies.
As the largest food manufacturer in the country, we are working closely with our supply partners to ensure ongoing production at our operations. However, security of supply to consumers is subject to the re-opening of key transport routes and access to the operations of our retail and wholesale partners.
We are engaging with government and support efforts by law enforcement agencies to restore calm, reopen key distribution routes and create a safe environment for the resumption of normal business activity.
The Company will issue further communication when it is appropriate to do so.
Any financial information contained in this announcement has not been reviewed or reported on by Tiger Brands’ auditors.
Bryanston
15 July 2021
Statement issued by Tiger Brands Limited through the JSE SENS Service, 15 July 2021
