Tiger Brands FY profit up, sees tough H1

JOHANNESBURG (Reuters) - South African consumer goods firm Tiger Brands reported a 20 percent rise in full-year headline earnings per share from continuing operations on Monday and predicted a tough trading environment next year.

The country's biggest consumer goods company said headline EPS jumped to 1.38 rand lifted by strong performances in its domestic food division.

It said earnings had also been boosted by a one-off post tax profit of 201.1 million rand from its disposal of Adcock Ingram in 2008 and a profit of 62.1 million rand after it sold off its stake in Sea Harvest.

The company had forecast an 18-21 percent rise in headline EPS from continuing operations, while EPS from continuing operations for the period was seen between 43-46 percent higher.

Headline EPS is the main profit gauge in South Africa and strips out certain one-off, financial and non-trading items.

Turnover increased 8 percent to 20.43 billion rand buoyed by the inclusion of turnover from its businesses in Kenya and Cameroon, which were acquired last year, the company said.

It said it expected trading conditions to remain difficult in the first half of next year, mainly due to pressure on consumer spending.

"Headline earnings per share is, however, expected to show satisfactory growth in real terms for the financial year ending 30 September 2010," the company said.

Tiger declared a full year dividend of 704 cents per share, 10 percent lower than the 786 cents per share it issued in the same period last year due to the unbundling of Adcock, it said.