Tiger Brands, which is expecting headline earnings per share for the full year period to end September to uplift by between 3% and 5%, is negotiating with victims affected by the listeriosis outbreak in 2017 although it says its liability in the case has not yet been determined.
Between 2017 and 2018, South Africa was rocked by an outbreak of listeriosis that may have resulted from meat products produced by Enterprise Foods, a division of Tiger Brands in Polokwane.
The outbreak affected about 1000 people, with 216 deaths suspected to have resulted from the outbreak.
On Wednesday Tiger Brands, which has been the subject of litigation and claims, said its lawyers were engaging the plaintiffs in the case to agree on assistance to those affected and with immediate medical needs related to the outbreak.
“(Our) attorneys have engaged with the plaintiffs’ attorneys with a view to agreeing on relief to qualifying individuals who have urgent medical needs, regardless of the fact that liability has not yet been determined,” said Tiger Brands.
This comes as the company is also engaging speedy resolution to the class action emanating from the listeriosis outbreak.
“The Company is committed to working diligently to bring the listeriosis class action to a close as speedily as possible,” it added.
Tiger Brands explained that it had suitable product liability insurance cover, although the cover is subject to, “to the terms and limits” of the insurance policy.
In 2022, the Supreme Court of Appeal overturned an earlier order of the Gauteng Division of the High Court in Johannesburg that mandated third parties to hand over epidemiological information related to the listeriosis outbreak.
Since then, said Tiger Brands, parties to the dispute “have continued with pre-trial preparations” that include discovery of documents and relevant records in preparation for a trial to determine liability in the class action.
Tiger Brands had also approached the National Institute for Communicable Diseases together with legal representatives of plaintiffs in the case to access the institute’s records related to the listeriosis outbreak.
In February this year, the NICD released files with some data relating to their investigation of the listeriosis outbreak to parties concerned to the class action. Tiger Brands said its experts and those appointed by plaintiffs’ attorneys were currently reviewing the files.
“The experts’ review of the data is at an advanced stage but remains ongoing,” it said.
Tiger Brands said in a trading update yesterday that HEPS for the trading year to end September will amount to be higher by between 52 cents and 87 cents, representing an uplift of between 3% and 5% compared to earnings for 2023 same contrasting period.
“Management is pleased to note that the various initiatives implemented to reduce working capital have proved successful to date, with a reduction in net working capital balances, an improvement in our cash conversion and an associated reduction in net debt expected to be reported for the year ended 30 September 2024,” said Tiger Brands.
BUSINESS REPORT