Tiger Brands Ltd (TBSJ.J): Feedback from Paarl mega site visit: Group strategy moving in the right direction

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Tiger Brands Ltd (TBSJ.J): Feedback from Paarl mega site visit: Group strategy moving in the right direction

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28 Jul 2026 06:30:51 ET │ 10 pages

Tiger Brands Ltd (TBSJ.J)

Feedback from Paarl mega site visit: Group strategy moving in the right

direction

CITI'S TAKE Neutral

Price (27 Jul 26 17:00) R274.00 We returned from the Paarl Mega site visit yesterday encouraged by the

Target price R310.00 investments and progress made by the Culinary team at Tiger brands. We

see efficiencies stemming from i) in-house production eg vinegar will drive Expected share price return 13.1%

cost-savings and more consistent supply and product quality 2) Shift to Expected dividend yield 6.2%

PET bottles from Cans also driving lower input and selling prices and Expected total return 19.4%

affordability for customers 3) Expanding into affordable/mainstream Market Cap R46,142M

lines to capture a bigger market eg: informal sector 4) Technology and use US$2,753M

of revenue managers to drive sales growth and profitability of brands 4)

Phase 2 and 3 of Paarl site upgrade should drive further savings across the

group eg: Super Bakery, new Mega DC in Gauteng, Paarl mega DC in

Western cape. While the plans are exciting and are likely to delivery cost Sa'ad ChothiaAC

savings, we think its still 12-24m away for material savings to be delivered, +27-11-944-0832

hence our Neutral rating maintained. saad.chothia@citi.com

Paarl Mega DC: The Paarl Mega DC is a culinary DC and manufacturing facility with

key culinary lines and condiments

1) R200m investment into the site. Further R500m expected in Phase 2 and 3. Team

sees opportunity to grow and expand the site and extract gains from further

consolidation.

2) Key changes i) adding PET lines and shifting from canned jam into PET bottles and