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JOHANNESBURG, May 20 (Reuters) - South Africa's biggest food
producer Tiger Brands TBSJ.J 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% and 77% lower than that in the
same period last year, from a previously guided decline of 35%.
At 1202 GMT the company's shares were 7.69% lower at 163.60
rand.
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%.
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.
"These impairments are as a result of the continual
assessment of risks associated with these businesses amid
ongoing trading difficulties due to deteriorating macro-economic
prospects, exacerbated by Covid-19 led economic challenges, as
well as adverse category dynamics," Tiger Brands said.
In February, Tiger Brands said the export division was
significantly impacted by a legal dispute with a former
distributor in Nigeria, resulting in virtually no sales into
that country. The division has also been hit by ongoing foreign
currency shortages.
($1 = 18.0512 rand)