Tiger Brands warns of lower profit. The fast-moving consumer goods group has been hit by rising costs and the

impact of last year's listeriosis outbreak.

Tiger Brands has warned that full-year profit will be up to 30% lower, sending

its shares as much as 4.6% lower on Friday.

In an updated trading statement, the fast-moving consumer goods group said

headline earnings per share (HEPS), including Kenyan subsidiary Haco Tiger

Brands which was sold last year, would be between 25% and 30% over than the

2,161c it reported last year. Excluding Haco, HEPS would also be 25% to 30%

down from 2,155c in the comparative period.

The group gave no further details but said in August that rising costs and the

impact of a recall of products that may have been contaminated with listeria

at some of its factories late last year and early this year were behind the

drop in earnings. The volatile rand, fuel price increases, labour settlements

and higher administrative prices had resulted in big cost increases which it

hadn't been able to pass through to customers. It had also impaired intangible

assets in the Person Care category.

Last month, Tiger resumed production at its Germiston meat processing factory

more than half a year after it closed the factory due to the listeriosis

outbreak. The Enterprise meat canning operation in Polokwane, which was also

implicated in the listeriosis outbreak, recommenced production in September

after it received a Certificate of Acceptability from the Capricorn

Municipality on 31 August.

The group's shares turned around to close 0.3% higher at 280.86 rand. They're down

39% this year.