(Bloomberg) -- Tiger Brands Ltd. shares climbed to their highest levels in five and a half years, signaling growing investor confidence in the leadership of Chief Executive Officer Tjaart Kruger, who took the helm 13 months ago to turn around South Africa’s largest food producer.
The stock rose 3.5% by 2:19 p.m. in Johannesburg, hitting the highest level since May 15, 2019. The rally follows the company’s announcement of a full-year dividend per share that exceeded analyst expectations — a key milestone under Kruger’s leadership.
Kruger inherited a company grappling with the fallout from a deadly listeriosis crisis in 2018, which tarnished Tiger Brands’ reputation. The company also contended with a series of recalls, including 20 million cans of food as well as baby powder products suspected of being tainted with asbestos. His predecessors, Lawrence Mac Dougall and Noel Doyle, exited in the wake of these crises, setting the stage for Kruger’s appointment.
Kruger’s approach has centered on restructuring the company into six autonomous business units, each with a clear mandate to drive regional growth. Speaking in an interview Wednesday, he said these changes had boosted operational efficiency and sales.
“We’re certainly seeing that momentum improving,” Kruger said, adding that trading in October, November, and early December has been “good.”
The new focus also includes divesting underperforming divisions that aren’t deemed core to the business. Tiger Brands recently sold its Baby Wellbeing business, including the Elizabeth Anne’s brand, for 630 million rand ($35 million), while holding on to its baby nutrition products. The company seeking buyers for parts of its grains unit, chocolate and King Food maize categories.
Kruger’s tenure marks a return to basics. “Huge opportunities” lie ahead as South Africa’s economic conditions improve, he said, noting that rising disposable incomes could boost demand for consumer staples like Golden Cloud flour, All Gold tomato sauce, and Beacon confectionery.
The CEO is also working to resolve a long-running class-action lawsuit related to the 2018 listeriosis outbreak. While legal proceedings remain slow, Kruger said “the parties are at least talking to each other, which they weren’t two years ago.”
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