Tiger Brands (JSE:TBS) Operating Income : R2,923 Mil (TTM As of Mar. 2024)

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What is Tiger Brands Operating Income?

Tiger Brands's Operating Income for the six months ended in Mar. 2024 was R1,297 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was R2,923 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Tiger Brands's Operating Income for the six months ended in Mar. 2024 was R1,297 Mil. Tiger Brands's Revenue for the six months ended in Mar. 2024 was R19,230 Mil. Therefore, Tiger Brands's Operating Margin % for the quarter that ended in Mar. 2024 was 6.75%.

Warning Sign:

Tiger Brands Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -7%.

Tiger Brands's 5-Year average Growth Rate for Operating Margin % was -7.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Tiger Brands's annualized ROC % for the quarter that ended in Mar. 2024 was 9.63%. Tiger Brands's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 28.13%.

Tiger Brands Operating Income Historical Data

The historical data trend for Tiger Brands's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Tiger Brands Operating Income Chart

Tiger Brands Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Operating Income

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3,170.30

2,477.50

2,235.50

3,211.90

2,950.30

Tiger Brands Semi-Annual Data
	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24
Operating Income	Get a 7-Day Free Trial															1,321.70	1,890.20	1,324.10	1,626.20	1,297.10

Tiger Brands Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 adds up the semi-annually data reported by the company within the most recent 12 months, which was R2,923 Mil.

Tiger Brands (JSE:TBS) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Tiger Brands's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	2594.2 * ( 1 - 20% )	/	( (21755.8	+	21362.6)	/ 2 )
=	2075.36	/	21559.2
=	9.63 %

where

	Invested Capital		(Q: Sep. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	25836.6	-	3304.9	-	( 775.9	-	max(0, 6760.7	-	12921.9	+	775.9	))
=	21755.8

	Invested Capital		(Q: Mar. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	27439.3	-	5055.8	-	( 1020.9	-	max(0, 8284.2	-	14125.3	+	1020.9	))
=	21362.6

Note: The Operating Income data used here is two times the semi-annual (Mar. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

Tiger Brands's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2023		Q: Mar. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	3660	/	( ( (6101.6 + max(5948.9, 0))	+	(6299.9 + max(7675, 0)) )	/	2 )
=	3660	/	( ( 12050.5	+	13974.9 )	/	2 )
=	3660	/	13012.7
=	28.13 %

where Working Capital is:

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(3947.8	+	7503.6	+	374.5)	-	(3304.9	+	0	+	2572.1)
=	5948.9

	Working Capital		(Q: Mar. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(4948.2	+	8156.2	+	0)	-	(5055.8	+	0	+	373.6)
=	7675

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Mar. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Tiger Brands's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	1297.1	/	19229.9
	=	6.75 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Tiger Brands Operating Income Related Terms

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Tiger Brands (JSE:TBS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Tiger Brands Ltd (JSE:TBS) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

TBLMY:USA TBLMF:USA UG5A:Germany

Address

3010 William Nicol Drive, P.O. Box 78056, Bryanston, Sandton, Johannesburg, GT, ZAF, 2146

Website

https://www.tigerbrands.com

Tiger Brands Ltd is an African manufacturer of branded food, home-care, and personal-care products. Present in 22 African countries, the company also has global distribution in the rest of the world: Germany, the United Kingdom, Sweden, Ireland, Canada, Sweden, the Philippines, Singapore, and Taiwan, among others. The product offering includes perishables, personal-care products, home-care products, snacks, baby care, beverages, grains, groceries, and out-of-home meals. The company reports under the following segments: grains, consumer brands, Home, Personal Care and Baby (HPCB), and export and international. The Grains segment is the largest segment. Some of the best-known brands are Oros, Hall's, Rose's, Ace, Albany, Purity, Ice Cap, Hugo's, and All Good.

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