Good morning, ladies and gentlemen, and welcome to Tiger Brands' results presentation for the year ended 30 September 2021. I am Nikki Katrakilis Wagner. In terms of the agenda this morning, Noel Doyle, CEO, will kick off the presentation with an executive summary and overview of the year under review, as well as our progress against strategic objectives. CFO Deepa Sita will provide us with a financial and operational review, and Noel will conclude the presentation with a strategic update and outlook. We will then open it up to Q&A. We ask that you please keep the questions pointed without long preambles so that we can get through as many questions as possible. Before we begin, I draw your attention to the forward-looking statement. With that, I hand over to CEO Noel Doyle. Thanks, Noel. Thanks very much, and thanks to all of you for taking the time out to join us and listen to Deepa and I this morning. You know, we're presenting these results, and I'm not going to dwell on it. Nikki, sorry, which slide are we on now? I can't see what's- Slide 5. Slide 5. Okay. We're presenting in an environment where there have been plenty of challenges over the last 12 months, and I'm not going to dwell on those challenges, but I'll just sort of call them out. We saw, particularly in the first half of the year, the significant compression in terms of consumer demand. We've certainly seen as the lockdown has been released and the level of social interaction is improved. We've seen an improvement in the levels of consumer demand, particularly over the last 3 months in terms of the market overall. We didn't see any great sort of upsurge in demand with the renewal of the SRD grant. Of course, you know, what's very topical at the moment is the challenges around the post-COVID-19 global supply chain squeeze, both in terms of the inflation that it's pumping into the system as well as the challenges in terms of absolute supply and logistics. If I move on to the other specific headwinds that Tiger Brands have had, quite clearly, an event as significant as the product recall that we had in July was something that took quite a lot of management focus, in terms of the lead up to the decision to do that recall and managing the fallout and the logistics that came from it. We also had to deal with both the specific incident over a couple of days in July of the civil unrest, as well as the challenges of getting back into operations, particularly challenging for us with our snacks and treats and our rice plant, where in terms of rice, we were basically completely and utterly cleaned out of stock for a period of time, and that obviously would have had an impact that isn't specifically captured in the numbers that we excluded or that we showed as being specific to those challenges. I think the other area where we would call out for us a very specific Tiger challenge was, while the rest of Africa did perform better than last year, it performed significantly below our expectations. That wasn't helped by industrial action that we had in March, April at our Davita manufacturing plant. It does talk to the sort of longer, slower growth curve without any acquisitions in building a business on the continent. If I go to looking at the kind of big strategic drivers that we've spoken about in the past, you know, I've color-coded these in terms of our own internal, and I think we're fairly hard on marking ourselves, but our own internal performance against these. Meet the needs of the consumer. We still think there's lots of work to do there, but in the last six months, we've been pleased that we've actually started to execute against value, specifically value-oriented innovations, and we made some good progress there in our bakery business and our grocery business. If you look at our brand health, all of those metrics have been maintained with the exception of one of our businesses, which was in rice, where there's a little bit of a glitch in volume, and we'll talk about that going forward. In terms of our focus on delivering quality to the consumer, we're really pleased that our sort of external consumer complaints numbers are down 25%. I think one of the things that we did get right this year was getting that price volume mix, a little bit more calibrated towards the middle of the scale. We managed for the first time in a number of years, as you'll see just now, to grow our volume share. It did come at the expense of value share. In terms of our own performance, it didn't come at the expense of our gross margins, where you see that we managed to sort of, move our gross margins up marginally at the same time as we grew share. That growth in share was despite some very specific challenges, particularly in the grains business, some of which directly attributable to our own conscious decisions in the marketplace, and I'm talking there about rice, and some of it related to the challenges of the specific categories. In terms of igniting our people, I think the processes that you'd expect in a company of our scale and with our aspirations are very much in place. We were pretty comfortable with how we managed through the second and third waves from a looking after our people perspective. I think the area where we still have work to do, and I'll talk about it a bit later, is in terms of, you know, developing that can-do culture, a growth focus. Again, we'll talk a little bit about encouraging a little bit more risk-taking and a little bit more bravery in setting out our stall on a growth agenda. In terms of building that growth pipeline, we've successfully embedded revenue growth management in our grocery businesses last year and expanded that into snacks and treats and beverages this year, showing good progress, and we're gonna be rolling that out across the business. You know, that takes us close to our customers, closer to our shoppers and maximizes value both for ourselves and for consumers in the long run. Some very good momentum in our initiatives in the general trade, where across a pretty large universe of stores, we've managed to expand our SKU presence very significantly. The disposal of UAC Foods in Nigeria was an important transaction for us in terms of our long-term aspirations. What that really does now is free up our sort of unhindered participation in the Nigerian market and allows us to control our destiny entirely within our own hands. We're not obliged to go through any specific vehicle in terms of going to market there. We've done well, we think, in terms of the venture capital fund that we launched the last time, filtering through a massive array of opportunities that have been presented to us. We've made our first offer, still negotiating around that, and hopefully by the time I come back to talk to you in April or May of next year, we'll have a lot more tangible things to talk about. Of course, we stay focused on the key consumer trends that will drive growth. Where we think we've done well, and I suppose this is part of Tiger's DNA, our obsession with cost savings and efficiencies and the work we've been doing in our supply chain, in particular in the past year, has paid off for us, and it's allowed us to be a little bit more generous in terms of our pricing, because you'll have seen our naked margins actually decline slightly, and it was the efficiencies that we were able to take out of conversion that allowed us to hold up the gross margin over that period of time. Our OEE is up 7%, and we're gonna look for a similar improvement next year, and we've done that with a lot of focus as well on the quality and safety, and actually embedding our processes so that it's not a one-off impact. That's why we're quite confident in setting out our stall for next year that we will see some savings. The work that we've done in the latter part of last year and this year on logistics, we've now got a very clear roadmap ahead of us for the next two to three years. The plans that we had put in place in the course of the FY 2021 financial year, we're already seeing that we are executing against those, both in terms of customer service and in terms of cost savings and efficiencies. We've also hit all of our targets in respect of overall cost savings and specifically, savings in our MUVs. Those, as I've said, are quite critical in us being able, recognizing our premium position, to get price points that are more appealing to our consumers. As I said, when you look across our billion rand brands, in terms of the metrics we only had relative to where we would have been six months ago, we've had a couple of brands which have improved some of their rankings on this one. The only brand where we've seen slight movement was in the Tastic, where our volume rank has slipped in the short term from number 1 to number 2. Then what you'll really see is, you know, one of the things that we've really worked hard on and struggled over the years is to try and get closer in across our categories. It is a challenge, and it is a category by category story, but to try and get closer to that sweet spot, you know, where we can get volume growth without significant degradation of margin. If you look here across the longer term, 12 months, the last quarter in a more recent month, you'll see that in our basket, we've been managing to grow share, not necessarily at the same rate as all of our competitors. Having said that, neither have we degraded value, the value to volume equation at the same rate as some of those competitors that have been growing volume. The savings that we've been pulling out of the businesses have allowed us to do that without our gross margin going backwards. In fact, I'm sure Deepa will show you that we managed to marginally improve our gross margin, despite very significant competitive pressures and pricing pressures, particularly in the grains and soft commodity businesses. You'll see that in terms of the value share loss, you'll see, you know, marginal value share loss against the volume share gain. Relative to the competitors that we've highlighted there, generally speaking, our value to volume index has not deteriorated at the same rate as theirs have. We've been able to get that calibration closer to a sweet spot than in the past. If I look at the sort of key strategic initiatives that we're driving of a long-term nature and again, try and scorecard ourselves against that, I think when we look at meeting the needs of the consumers, what we can see in terms of sort of global best practice is, you know, a significant amount of benefit and differentiation being leveraged in that digital and direct marketing space. That's an area where we are still playing catch up. I think it's probably the most significant area this year in terms of our level of disappointment, in terms of the progress that we've made, and we've got very specific plans to catch up in that space. It's not just about, you know, buying and tapping into tech, it's also about ensuring that you can find the right skill set and we've been making some progress in that. In terms of the health and nutrition, I think we have launched and have in the pipeline the products that tap into that narrative. We've made limited progress, some progress in respect of DOB opportunities, not as much as we might have thought a year ago. I think that's a combination of some hesitancy on the part of the retailers as well as it in some ways being counterculture within the organization. We expect to make some smaller, more incremental progress in this space. It was never going to be a massive growth driver for us, but not as much progress as we originally anticipated. I think I've covered what's happened in the supply chain. The real challenge now is to inculcate the progress that we've had over the last couple of years, you know, and make sure that it's not a once off. But we're certainly getting a very good sense as we move into this year that we are being successful in terms of that. We've amber carded ourselves in terms of the customer service and logistics, and that's really because we're still on the journey. I think we are where we would've expected to be at this stage and delivering against the targets that we achieved, but still some progress to go. The same thing in terms of just getting that, you know, focus on execution. There's still some work to do in parts of our portfolio. The cost savings, still some progress, very good progress this year, but there's still legs in that space. We need that as we go into the kind of super inflation, if you like, that we've been experiencing in this post-COVID supply chain scenario. SKU rationalization has played a role in the optimization of our OEEs. It's gotta play a more significant role going forward, but good progress in the last year and we have managed to take some growth. Some of our growth has come out of the value solutions actually executing against that. From a customer perspective, I think the real call out here is in terms of our rest of Africa strategy, you know, the precision with which we work with our distributors, with which we ensure that we have all the right distributors in place. That's an area where I think we're a little bit disappointed with our progress this year. Much more about us and less about the choice of distributors. We have invested heavily in terms of people in that space and we expect further progress going forward. Igniting our people. As I say, we have all of the processes in place. We were quite pleased with the results that came out of our Voice of Tiger internal climate survey, given the backdrop against which the survey was conducted. We've got more work to do to make people really believe in that mindset shift that drives growth and that understands that you can't grow without taking some risks. We'll talk about CapEx, no doubt, in question time. In CapEx, you know, we're seeing very good delivery against replacement efficiency-based CapEx, you know, where we need sort of more people to be a little bit more confident and more risk-taking is in putting their names behind the growth opportunities that require significant CapEx. With that sort of brief summary, I'll hand over to Deepa. Thank you, Noel. Good morning, ladies and gentlemen. Thanks for joining us this morning. I'll spend some time talking to you about the FY 2021 financial results, and then we'll talk a little bit around where we are trading to date in terms of FY 2022. Nikki, if we maybe just start with the executive summary in terms of the highlights as well as the headwinds that we experienced in FY 2021. Despite the significant cost push, the business did see solid naked margin performance in H2 in most of the categories. As Noel indicated, this was largely driven by the procurement as well as the MUV savings that we saw. The business delivered on its cost savings target as previously communicated, and this was driven through multiple continuous improvement initiatives. Also very favorable was the cash generated from operations that increased by 33% to ZAR 3.9 billion. While the group closed on a strong net cash position of ZAR 2.2 billion, this was largely driven by improved working capital management in particular, in terms of debtors collection, which was improved on a year-on-year basis. In terms of the headwinds that we experienced, as Noel indicated, we did see limited volume growth, driven by price increases, et cetera, that we've taken, as well as a competitive environment in which we're operating in. The supply chain challenges that we experienced certainly were headwinds for the organization. Some examples of those would be, Carnarvon following the recall, SNT and Rice following the civil unrest that we experienced in July this year. Bakery saw adverse industry category dynamics with deep discounting in the market remaining very prevalent. As Noel indicated, also, the exports performance was negatively impacted by muted demand as well as margin compression, with the LAF business in particular being impacted by the strengthening of the rand during the year. If we move to the next slide, please, Nikki. Just in terms of our underlying performance, you'll note that the core business has certainly improved year-on-year. However, this was offset by once-off costs related to the canned vegetable recall, as well as the civil unrest that we saw in July. The top line performance is primarily driven by price increases, with price inflation at 7.2%, which was partially offset by volume decline at 2.3%. The majority of the categories reflect price inflation to cover cost pushes, which resulted in volume decline, as Noel indicated earlier. This varied depending on competitive pricing, as well as just overall product elasticity. Despite the revenue challenges, though, our focus on cost savings as well as improving production efficiencies resulted in positive operating leverage for the full year, and that was before the impact of the product recall and the civil unrest. The effective tax rate before impairments, non-operational items and income from associates declined from 32% to 29.1%, and this was largely driven by an increased benefit in respect of a special investment allowance claimed on qualifying capital projects during the current year, as well as lower non-tax deductible expenditure in the year. In terms of the associate performance, while Carozzi performed well in terms of local currency, they were negatively impacted by the foreign exchange conversion. Also just to point out the equity accounting for UAC ceased on the first of October as previously reported, following the disposal earlier on in the year. In terms of earnings per share from continuing operations, that ended 21% ahead of prior year, with headline earnings from continuing operations ending 6% behind the prior year as a consequence of the product recall, as well as the costs associated with the civil unrest remaining in the HEPS calculation. The relatively higher rates of increase in EPS compared to the year-on-year percentage changes in HEPS is primarily due to the significant impairment charges of ZAR 600 million recognized in the prior year. These impairment charges were excluded in the calculation of HEPS last year. The increase in HEPS from total operations were primarily due to the losses recorded in the VAMP business in FY 2020, compared to a small profit recognized in the FY 2021 year. Just for information purposes, VAMP has been treated as discontinued operation in the current year. In terms of the dividend, we're pleased to advise that the board has declared a final ordinary dividend of ZAR 5.06 per year per share, and this brings the total dividend for the year to ZAR 8.26, which is 32% up from the prior year. Nikki, if we can move to the next slide, please. This slide basically reflects the H1 H2 performance in terms of price volume. You'll note that the financial year can be characterized as a year of two halves. The business delivered a solid first half performance, which was driven by a very strong first quarter. This was offset in part by the slower top-line growth that we noted in the second half. The volume decline in the second half was largely driven by bread, groceries and snacks and treats, which we'll be covering in greater detail in the upcoming slides. Despite the slower revenue growth in H2, momentum was maintained in cost saving initiatives and efficiencies, in turn contributing to improved margin performance in the second half. Next slide, please, Nikki. As noted previously, Tiger Brands' results reflect steady progress against our strategic priorities with an improved underlying performance from the core business. This was, however, negated by the cost incurred as a result of the product recall as well as the civil unrest. These costs in total amounted to ZAR 732 million pre-tax and have been accounted for as follows. The customer refunds related to the product recall have been accounted for as a reduction in revenue. The write-off of stock related to the product recall, which amounted to ZAR 308 million, as well as the civil unrest related stock write-offs amounting to ZAR 85 million, have been accounted for through cost of sales, and these have been disclosed separately on the face of the income statement. Other costs related to both the unrest as well as the product recall have been accounted for through the relevant expenses functions in the respective lines in the income statement. In addition to these, the impairment charge in the current year amounting to ZAR 154 million relates primarily to the impairment of property, plant and equipment in the deciduous fruit business. Next slide please, Nikki. This slide is aimed at reflecting the true trading performance, excluding the impact of the stock write-off related to the recall as well as the unrest. It's important to note that the civil unrest adjustment included in the slide relates only to the stock-related costs. Increased repairs, maintenance, and security-related costs, as well as lost sales, are estimated to be approximately ZAR 100 million. What you'll note in this particular slide is that the operating income, with the adjustment of the recall as well as the unrest, moves from ZAR 2.2 billion to amount of ZAR 3 billion, with the operating margin percentage moving from 7.2% up to 9.5%, and both showing significant improvement on the prior year. Next slide, please, Nikki. In terms of the operating margin, this was enhanced by ZAR 498 million, and that was specifically driven through OEE factory efficiencies, favorable MUVs, as well as procurement savings. This, unfortunately, was negatively impacted by the costs related to the civil unrest and product recall, amounting to ZAR 732 million as noted previously. What's also pleasing to note, as Noel indicated, is that the savings that we've achieved during the year are in line with the target that was previously communicated, and we're very confident that we'll see the same sort of delivery in the new financial year. Next slide, please, Nikki. While the recovery was noted across a number of the categories, milling and baking, as well as exports, did face some headwinds. The grains revenue increased by 5% to ZAR 14.6 billion, reflecting price inflation of 10%, while overall volume declined by 5%. Our ability to pass through some input cost inflation, combined with cost savings, resulted in operating income increasing by 11% to ZAR 1.4 billion. As was in the case in the first half, the baby category results are disclosed under the consumer brand segment. The results were previously reflected under home personal care and baby, and the prior historical data has been restated for comparative purposes. The consumer brands portfolio delivered overall revenue growth of 4%, comprising price inflation of 7% and a reduction in volume of 3%. The flat revenue performance in groceries was offset by year-on-year top-line growth in snacks and treats, beverages, baby, as well as out of home. The price inflation and significantly improved manufacturing efficiencies that we've spoken about previously were the primary drivers for the operating income increasing 20% to ZAR 1.1 billion. Overall, HPC increased by 6% to ZAR 1.9 billion, and this was driven by sustained category leadership in the pesticides category, offset by a disappointing performance in the personal care category, which was reflective of the adverse consumer dynamics being faced in this particular category. Total revenue for the export and international business increased by 7% to ZAR 3.6 billion, and this was primarily driven by the strong start attributable to the resumed trade in Nigeria. Operating income for the year reduced by 7% to ZAR 96 million, mainly as a result of the increased losses in the deciduous fruit in this particular category. If we move specifically into the grains slide. In terms of the grains performance overall, milling and baking experienced a challenging second half, driven predominantly by bakeries and sorghum-based products. Maize enjoyed a strong recovery in the second half. Despite the year-on-year volume decline, primarily due to the increased in-home consumption in the prior year, margins did improve in the second half. The wheat-to-bread value chain continues to experience margin compression because of adverse category dynamics, with deep discounting in the market remaining very prevalent. Higher selling prices were more than offset by the volume decline seen in this particular category. The sorghum-based products experienced a particularly difficult year as a result of higher conversion and distribution costs, which was compounded by lower sales volume as competition intensified. Despite the impact of the civil unrest on the rice business, its timely return to normal operations helped to ensure the category sustained its strong first half performance. As a result, the rice business delivered a strong year-on-year improvement underpinned by higher selling prices as well as sound cost management. Following muted revenue growth in the first half, pasta volumes benefited as consumers favored the category in the second. Improved demand, coupled with strong in-store execution, resulted in Fatti's actually gaining market share during the year. Although growth in its core oats offering was sustained in the second half due to successful winter campaign and adverse mix impacted Jungle's overall second half performance. However, despite this, Jungle did achieve a pleasing result for the full year performance. Looking ahead, the focus will be on delivering innovation as well as further manufacturing and supply chain efficiencies in this particular category. Moving on to the groceries slide. Next slide please, Nikki. Grocery sales were negatively impacted by a competitive trading environment, lower seasonal demand in the first half, and unusually quiet trade over Easter. The supply chain challenges following the recall further impacted the performance during the financial year. The full year revenue remains flat at ZAR 5.5 billion, and this was underpinned by price inflation of 8% with a similar volume decline seen during the year. Consistent factory performances as well as expense management discipline resulted in operating income, excluding the impact of the recall, increasing by 12% to ZAR 397 million, despite experiencing significant increases in raw material as well as packaging costs. The All Gold tomato sauce kid-friendly bottle, as well as the Mrs. Ball's value bottle, are examples of some of the successful renovations we've seen in this particular division. In terms of the product recall, as previously reported, Tiger Brands' claim under the contract with third-party supplier is still being assessed. Looking forward, the focus will be on defending our market-leading positions through the marketing as well as innovation, as well as continuing to drive manufacturing and supply chain efficiencies. The improvement of service levels also remains a key priority following the impact that we saw of the product recall. Moving on to snacks and treats. Production volumes within snacks and treats were adversely impacted by the COVID-19 related absenteeism that we saw in the beginning of the calendar year, as well as the civil unrest experienced in the second half of the year. These factors resulted in supply chain constraints as a result of both lost production as well as raw and packaging material shortages, as we saw a number of our suppliers also impacted by the same civil unrest in July. The adjusted lockdown measures implemented in July 2021 resulted in lower demand in respect of impulse purchases. Subdued shopper engagement relating to seasonal events such as Easter also further led to slower revenue growth in the second half. Despite these challenges, revenue for the year increased by 7% to ZAR 22.3 billion, underpinned by price inflation of 8% and an overall volume decline of 1%. Operating income saw a significant increase of 37% to ZAR 234 million, driven by higher realizations together with the impact of ongoing cost improvement initiatives. As in the case of groceries, the focus of this category will also be on improving service levels and to focus on continuous improvement aided by investment and a review in terms of supply chain solutions. The beverages category revenue increased by 6% to ZAR 1.7 billion. This was supported by strong second half performance from ready to drink category, as well as concentrates in the form of Oros. The operating income for this category increased by 9% to ZAR 261 million benefiting from favorable product mix as well as improved factory efficiencies and sound cost management. Looking ahead, beverages has been identified as a high growth category for the business. Our key focus will therefore be to expand our presence through strong innovation. In addition, as in the case with previous categories, there'll be continued focus on cost savings as well as any OEE improvements overall. In terms of the baby category, the baby category delivered a very strong performance, driven by recovery in volumes across most of the segments. Revenue increased by 12% to ZAR 1.1 billion with equal price and volume growth. The operating income increased by 29% to ZAR 143 million benefiting from a favorable product mix, waste reduction, as well as lower distribution costs. Looking ahead in this particular category, the focus will be, among others, the consolidation of the Purity brand as the master brand, sustaining favorable product mix supported by clear strategies for the segment, as well as driving toddler snacking as a growth opportunity. In terms of home and personal care, certainly a mixed bag performance. Home Care saw solid volume uplift, but which was underpinned by strong summer campaign at the start of the year, which included benefits of effective in-store execution as well as innovation. The performance was sustained in the second half, with revenue growth ending 11% up. The operating income increased by 20%, driven by improved efficiencies, better material usage variances, as well as tight operating cost controls. Personal Care, however, although they enjoyed a recovery in operating income in the second half, it was not enough to offset the weak start to the year. The volatile category demand, together with the retailers prioritizing essential categories during the civil unrest and thereafter, resulted in a volume reduction of 6% for the year. Despite selling price inflation of 3%, the lower volumes resulted in revenue declining by 3% to ZAR 643 million. Operating income declined to ZAR 47 million from ZAR 79 million in the previous year. Looking ahead, the category will look to invest in CapEx to achieve continuous improvement in this particular site, as well as successfully drive various innovations during the year. In terms of our export international performance, the second half performance was negatively impacted for exports, in particular by low levels of demand, compounded by pack size and price misalignment to market expectations. The border congestion which impacted the sales to Mozambique also affected the results. The revenue in the deciduous fruit business declined by 6% due to a challenging second half performance as demand in key export markets remained subdued. The business recorded an increased operating loss of ZAR 147 million, primarily due to the strengthening of the rand, as noted previously, as well as higher global shipping costs. Despite significant external headwinds, Chococam recorded an exceptional milestone this year, with revenue exceeding ZAR 1 billion. This was primarily driven by strong volume growth across all segments, underpinned by successful innovation, optimal pricing, and improved distribution to neighboring countries. The operating income increased by 16% in rand terms to ZAR 172 million, which was an increase of 10% in local currency. This was assisted by improved efficiencies as well as lower conversion costs. The focus for exports in international will be to optimize product and country mix going forward, as well as to continue delivering on innovation opportunities in the particular space. Moving on to the balance sheet metrics. In terms of our working capital dynamics, cash generated from operations, as I indicated, increased by 33% to ZAR 3.9 billion, thereby allowing the group to close on a strong net cash position of ZAR 2.2 billion. In terms of working capital, while management continued to focus on managing inventory days, total stock did end ZAR 580 million higher than the prior year. It is, however, important to note that the inventory balances in FY 2020 did end particularly low due to the COVID-related factors that we experienced. The business also took a very conscious decision in FY 2021 to increase inventory levels across the portfolio in anticipation of COVID as well as wage negotiation related supply chain disruptions. The debtors collection remained well controlled, and creditors continue to remain a focus area in terms of optimizing supplier payments. In terms of the return metrics, the improved ROIC and ROE was driven by the increase in earnings in the current year compared to the past. The ROIC, excluding the recall and unrest, is 15.3% for FY 2021. Despite improvements in the earnings year-on-year, RONA did see a dilution as a result of the increased capital expenditure noted in the current year. Moving on to the next slide. As Noel indicated, in terms of total capital expenditure, this increased by 8% to ZAR 1 billion in FY 2021, with the focus being replacement CapEx amounting to ZAR 762 million in comparison to the 659 in the prior year, and the balance relating to multiple expansionary projects. As previously noted, the business took a conscious decision to increase spend on IT as well as automation projects in the year. Of the 46 projects initiated, 20 have been completed and 15 of the remaining 26 are already in test or deployment phase. Examples of some of these projects have been the Oracle EBS upgrade, improvement in terms of cybersecurity, financial consolidation tools, profit waterfall tools for the revenue management initiatives that Noel mentioned earlier, as well as a mobile solution in terms of our Albany bread business. The emphasis for FY 2021 CapEx remains on replacement as well as automation. The larger projects include the relocation of the peanut butter plant, as well as improvements on the aerosol line in our HPC business. That brings me to a close in terms of our FY 2021 results. I thought I'd take a minute to just maybe talk a little bit about what we're seeing in FY 2022 to date. In terms of FY 2022, at a macro level, we continue to see many challenges impacting consumer behavior and demand. The competition has intensified, with PPI running ahead of food CPI. The current environment is certainly here to stay, and that has certainly been something that we've noted in the quarter 1 performance to date. This will require us to remain consumer focused, continue to optimize our supply chain and be relentless on our cost. The first quarter of FY 2022 has certainly been challenging. With the business experiencing significant cost push pressures, post-COVID supply chain squeeze impacting areas such as shipping and packaging costs, as well as general shipping delays being experienced overall. We've also seen impact of the labor unrest, and ultimately, the bread market also continues to remain challenging overall in a very competitive environment. With that being said, our drivers for the FY 2022 improvement will be hinged on reasonable revenue growth expectations at the core. This will be driven by volume growth underpinned by multiple planned innovations, as well as the export market improvement in terms of product and country mix. We also will continue to focus on our cost saving initiatives as well as factory performances, and we've now put down another target of ZAR 480 million for the financial year in terms of driving these particular initiatives through strong continuous improvement measures. In terms of the way forward, we also would seek to conclude the way forward in terms of the LAF business, and that will also set us up in terms of success for the primary drivers of FY 2022. On that note, I'll hand over back to Noel to do the conclusion. Thank you, Noel. Thank you, Deepa. So in looking at the numbers and a portfolio as broad as Tigers, there'll often be areas where we need significant improvement. I would guess that where I would draw your attention to the kind of underlying work that's been going on and the performance that's coming from it is to take a look at the performance of our grocery business, where not only did we show some growth this year on the prior year, but there's also significant growth if you go back to 2019. Which is an indication of the work that's been done both in terms of supply chain within that business and also the work that's being done on the front-facing consumer and shopper perspective with innovations and real execution against price point architecture. In many ways, that's a bellwether. It's where we keep our brands. Whilst we can't wish away the very significant impact of the Koo cans recall, the performance of that business, notwithstanding that event, talks to the power of the brands that we are custodians of. If I look forward, for us, it's been pleasing that we managed to grow profitability double-digit or almost double-digit in the second half. Even if you go back to 2019, the second half of the year reflects growth on the current year. The current year reflects growth on the second half of 2019, notwithstanding some of the specific category challenges that Deepa has called out that intensified in the second half of the year. For us, we're going to continue with our focus on the strategic themes. We know that we have to sort of up our game in the areas that really talk about the growth in the top line of the business. I think in the kind of higher inflationary environment that we're getting into, in an environment where precise management of supply chain, precise management on inbound logistics is going to be quite important. I think the heavy lifting that's been done over a number of years is going to pay off for us in terms of our ability to perform in a very challenging market. Lots more focus, you'll see from us in accelerating innovation, in driving revenue management so that we can have a win-win for customer, consumer and shopper in terms of the effectiveness of our promotional spend. We're gonna make sure that one swallow does not make a summer in terms of the supply chain. You know, the team that have delivered that performance over the last couple of years are very committed to continuing the momentum in that space. In a business as large as Tiger's, we've got 41 manufacturing sites. There are always a few that need extra special attention, and we're calling out very specifically our snacks and treats facility, where we are putting in a significant amount of CapEx to resolve some almost criminal supply chain issues. When I say supply chain issues, to have poor service levels is criminal in an environment like this with a pressurized consumer. We know there's demand for our brands and demand for our products in that space. We just have to get our act together to deliver against those. When it comes to our sorghum-based products plant, that's really about management disciplines and efficiency in that plant. At Davita, we've made good progress. We just need to carry it forward into the new year. We will continue to drive the cost savings and efficiencies hard. We will need every cent to repeat the kind of performance that we've had this year in holding on to our gross margins, because we can expect to see some naked margin compression. You can expect to see pricing pressure. The wave of inflation has come at a time when it's not always easy to pass on those to customers, particularly in the run-up to Christmas when pricing and promotional activity has been fixed for a period of time. We're gonna look at growth, both organic and inorganic. I think the performance of our Chococam business is a real call-out that it is possible to operate in a really challenging environment. Chococam, as Deepa said, had lots of challenges, both in the domestic market and in the key export markets. I think with the right brands and the right management team, it is possible to build a business, and hitting ZAR 1 billion was a major milestone for us. I guess the key thing is to keep working on the DNA of the organization, such that we have people who really are hungry for top-line growth, hungry for success, and who are prepared to put themselves and their own reputations on the line in stretching out of their safety zones so that we can actually build off a reasonably solid set of results, the abnormal items notwithstanding, and get on a serious growth trajectory going forward. With that, I'll hand over to Nikki to take any questions. Thanks, Noel. Thanks, Deepa. Let's kick off with some margin questions, Deepa. Please, can you talk to your outlook for margins and profitability in the coming year? Are you confident of sustaining gross and operating margin improvement at the group level on the FY 2021 base, excluding the impact of the product recall and social unrest? Which divisions will drive improvement, if any? Thanks for that, Nikki. So yeah, look, you know, as I indicated previously, the quarter one FY 2022 performance to date is certainly proving to be challenging. We are seeing significant pressure coming through from increased cost pushes, you know, both in raw material as well as packaging. With that being said, though, as indicated both in my section as well as Nick's, we continue to focus on cost saving initiatives and efficiency opportunities and initiatives in order to try and mitigate the impact of these increased cost pushes. What we believe is that these benefits will allow us to be optimally priced, which in turn will certainly drive the volume delivery of each of the categories. Another thing I'd like to call out is we also are at the mercy of the foreign exchange fluctuation, particularly in the deciduous fruit business. To give the market an indication, you know, a 10% change in the USD in respect of that business results in a ZAR 5.3 million fluctuation overall. Also, some of the areas that we'll be focusing on is the rollout of the revenue management project throughout the organization. We've completed the rollout in both the culinary as well as the snacks and treats and beverages business. Our focus during FY 2022 will be to run that out through the remainder of the categories, which we also believe will contribute towards our margin performance as well as our overall profitability. Areas that we'll be focusing on from a strategic point of view will certainly be our innovation pipeline. That will also allow us to drive the appropriate consumer needs or meeting the consumer needs at the appropriate price points, et cetera. We believe that will also contribute to our overall performance. In terms of categories that we remain concerned on, as Noel indicated, the bread industry, the bread market certainly remains challenging in a very competitive discounting pricing market. That is one that we'll keep a close eye on and we anticipate to remain challenging in the current year. The focus areas in addition to the items that I've already spoken to will certainly be exports in the rest of Africa. You know, we'll be focusing on our product mix. We'll be focusing on our country mix and ensuring that we are meeting the needs of the consumer and are appropriately priced at the market level, as well as making sure from an innovation point of view, appropriate pack sizes, et cetera. We believe that overall all of those items will certainly help in terms of margin management as well as overall profitability. In terms of the focus, it will be throughout all categories. Like I said, we remain concerned in terms of the bread one particularly. I'm going to look to Noel to see if there's anything he'd like to maybe add on that. No, I think you've covered very well. Thanks, Deepa. Okay. Okay. There were actually quite a few pointed questions around the wheat to bread value chain, which I think you've covered off, Deepa, but just to be sure. Do you foresee deep discounting in the mill bake value chain given industry capacity utilization? There was a question, what is TBS's view of Premier spend of ZAR 400 million on its Gauteng bakery? Could it be said that wheat to bread value chain will remain pressured for a while? Yeah, I think I can take that. I think undoubtedly the most challenged sort of part of our business, and it has been for a number of years, is the wheat to bread value chain. I think that challenge in the short term is certainly accentuated by the massive increase in wheat prices. Bringing sort of new capacity on stream and looking aggressively to fill it is definitely coming at the cost of margin. We're seeing an intensification. I think we saw for the first sort of three or four months of the past financial year of an amount of a degree of stability in the marketplace. But the element to which we're seeing very aggressive price competition is intensifying. You know, we've sort of been quite cautious in terms of not overreacting to that. The kind of volume losses that Deepa referred to at the beginning of her presentation are not sustainable. It's the business with the greatest risk for us in terms of profitability and margin going forward. No doubt about it. Okay, thank you. On the SKU rationalization, how many are there currently, and what target are you working towards? Apart from lowering prices to drive volumes, what are the main growth initiatives and specific product innovations for FY 2022? And what do you see as a sustainable margin in bread, assuming current market dynamics? I think that was answered. Do you expect all of the cost savings to be absorbed into prices, and have you identified further opportunities beyond FY 2022? Deepa Sita, maybe you can talk to the cost savings. Yeah, I'll take the last one. Noel, do you wanna take the first few? Yeah, you can. Let me maybe start with the last one. In terms of our cost-saving initiatives beyond FY 2022, we're pleased to advise that we commenced an intensive program towards the back end of FY 2021, which allows us to ensure that we have a continuous full pipeline of ideas that come through in terms of cost-saving initiatives. We're launching a program called Every Tiger Counts throughout the organization, which really embeds a culture of cost sensitivity, and really trying to drive from the top down, a cost-conscious culture where we're able to come up with different ideas, and continuously build this pipeline of ideas in terms of cost saving, in a very systematic way, in order to ensure that we have this done on a sustainable basis going forward. While we've set the target to ZAR 480 million for FY 2022, we'll certainly be looking to increase those numbers going forward, not only from direct spend, but certainly from an indirect perspective as well. We think holistically, if the entire organization gets behind this, rallies behind this from a cultural point of view, cost culture point of view, we believe that we'll be in a good space to deliver. Okay. Nick, I can get back to you on the SKU rationalization in terms of the second question. Apart from lowering prices to drive volumes, what are the main growth initiatives and specific product innovations for FY 2022? Yeah. Without wanting to sort of telegraph some of what we're planning to do in the marketplace to our competitors and weaken launch prospects, I think if you look across our portfolio, we've launched some nice innovations in the bread space this year. We expect to see some good growth coming out of our snacks and treats business once we get our service levels to the level that we want to. Good innovation coming out of our personal care business, our home care business and our beverage business. I think those will be big drivers for us in terms of new things coming to market. We're expecting some recovery. We really had a very poor internal performance in our sorghum-based products business, so we're expecting a better performance out of there. I think as we get towards the second half of the coming fiscal year, we should start to see some momentum in our exports business, particularly in Nigeria. We're very happy with the performance in Mozambique and think we can build on our offering in Mozambique. Nigeria, we're still doing a lot of the legwork, but I think by the time we get to the second half, we'll see growth in that space. Can you please elaborate on some of the labor challenges? It seems the frequency of strikes are increasing given the most recent strikes at your Snacks and Albany factories. Is this a higher risk than in previous years? A similar question, how damaging will the current wage protest in KZN be on the business performance? I think if you look, again, you've got to take in mind that we operate with 40-odd individual sites, and we don't deal with one, two or three trade unions. I think we deal with a number of trade unions that's probably closer to 13 or 14 across our business. The annual round of wage negotiations is quite complex and quite challenging. We had one specific wage-related strike in the past year, which was at Davita. So far, we have one at the Snacks and Treats business. I mean, it's really coming from very excessive expectations from our perspective in terms of double-digit price increases, not the 7% that I saw reported in the press at Snacks and Treats. You know, our desire to sort of balance up our labor costs in terms of output and productivity. It is a tough environment. You can see that sort of inflation differs in each individual's basket. With the kind of pressure that we're seeing on the CPI and particularly in the food space, we can understand that we're having some challenges. You know, the strike in KZN has been going on now for just over a week. We do have a meeting scheduled for Monday. The impact of it, if it goes on much longer, could be quite significant if it terminates early next week. There unfortunately is no way that we can either at that site, given our performance, it's one of the businesses that has performed poorly relative to the 2019 year, nor in terms of setting the precedent that we can, you know, even have a constructive conversation around a wage settlement that's double-digit. I don't think the environment is radically different from what we've dealt with over the years. What has been disappointing is the illegal work stoppages that we've had at two of our bakeries. You know, we must recognize that, you know, those are a reflection on management broadly when something like that happens. Also a reflection on a trade union movement that doesn't necessarily have sort of complete control over its membership. What was pleasing is that, you know, the one industrial action that took place at Pietermaritzburg, we've reached a very amicable settlement in terms of the annual negotiations well within the parameters and the guidelines that we've set for that. I anticipate we still have some sites where we haven't settled wages. There will be some tough bargaining. It probably is a little bit tougher than in previous years, but not radically so. Thank you. Just maybe a little bit of color on the venture capital fund. Please, could you provide color on the business you're acquiring and the nine new businesses you're pursuing within the venture capital fund? Are these within South Africa or in Africa? Will the founders of these firms join the Tiger family? I'm going to ask Deepa Sita to take that, but I just want to make the point that from a VC fund, it's not businesses that we would acquire, it's businesses that we would co-invest in to grow. I think that's an important differentiator of a VC fund. Thanks for that, Noel. Thanks, Nikki. Yeah, the VC fund has certainly been well received. We've received thousands of applications in terms of interested parties wanting to engage with Tiger Brands. Certainly, you know, we're really pleased to see how well it's been received in the market. I'm sure you can appreciate it takes quite a bit of time to work through each of the proposals and submissions that have come through. In terms of our commitment, we've just recently appointed a head to head up the VC fund initiatives, et cetera, within our organization. We look forward to her contribution going forward. In terms of the investment that we're currently looking at, it is in the food industry. It is a product that we are not necessarily currently trading in. I'm sure you'll appreciate that at this point in time, we'd prefer to rather keep that confidential in terms of the exact entity that we're engaging in. You know, in essence, we were quite excited about the discussions. It allows us to enter into a space that Tiger Brands is not currently playing in, but it certainly provides great opportunities for us to work with the entity going forward in order to really grow something sustainably. Thanks, Deepa. Also, the opportunities that we are pursuing in the venture capital fund are strongly aligned to emerging trends such as snacking, health and nutrition and value. They will be strongly aligned with the consumer trends that are coming out of our insights. Are you considering a special dividend? Net cash is growing as cash generation is strong and also maybe some guidance on leverage. I'll take that one. Look, I think you'll see that the dividend declaration is based on adjusted HEPS. We've moved outside of the dividend normal dividend cover calculation, and that in itself is sort of an indication of a recognition of the gearing or lack of gearing. I think that you will see, you know, further progress as we progress through the year in terms of balance sheet optimization. That's really as much as we could say at this stage. Thanks. Can you comment on how the sale of LAF is progressing? It's quite a difficult transaction, as you can imagine. You've seen the level of reported losses and the significant amount of working capital that's required by any acquirer. While we're still in negotiations, I would say that progress has been, you know, less than what we would have hoped. We do understand that it is, you know, an entity that has challenges from a commercial perspective. We will be continuing to make our best efforts to conclude a transaction in that respect. If we're not able to conclude one, then we'll be back at the board to talk about the future of that business. Private label and brand interplay expectations in current tough environment, is this potentially an additional challenge for Tiger? It is a challenge that you will see in certain categories, but it is quite interesting when one looks at the market. I think as we've seen the branded manufacturers react to the constrained consumer environment, sort of one of the losers in terms of the share data that we shared earlier is the private label space. I do think that, however, is just a hiccup. You know, in terms of our scenario planning, we see that as an ongoing incremental challenge. That's why we have to focus, if you like, in two directions. You know, we have to try and bring products that cannot be commoditized or copied, that present some barrier to entry that provide differentiation. At the same time, we're still a mass market portfolio by and large, and we need to make sure that we can make our brands within reach of our consumers as opposed to having them take DOBs. It remains a serious threat to all branded offerings in the market and, you know, we hopefully have got plans to respond to that. I think this year is not the beginning of a trend. We've seen it, you know, two or three years ago. We also saw a fairly static, in fact, slightly declining private label market. I think this year is an anomaly and the trend will continue going forward. Okay, a couple of last questions. What mitigating initiatives is Tiger undertaking re energy disruptions and input costs? Please explain what steps Tiger is undertaking to procure cans from more reliable sources. Okay. As far as energy is concerned, virtually all of our sites have the ability to operate through the kind of disruption that we've been seeing from Eskom. We've invested in the region of ZAR 300 million. It's probably slightly higher than that, you know, over this period since we started to experience load shedding some years ago. Our sites are in a good position. It's very difficult to mitigate the cost. Running our own generators comes at a massive on cost, and it's not something that we can move away from. We're also, you know, doing a large pilot solar project. We're gonna see how that works for us in terms of operational effectiveness, not just from a savings perspective, going forward. Right now, we're not calling out Eskom for significant disruption to our business, but it is a fairly heavy burden in terms of on-cost and in terms of managing, you know, the infrastructure. That means that we're able to cater for power surges and that we don't end up with a disrupted production process if for some reason the switchover doesn't occur seamlessly. In terms of our cans procurement, you know, we have a contract that's in place with our existing supplier, which it's both of our intentions to honor. You know, that whole space is something that is under constant review. I think in terms of that question, it's important to underscore that there are not many can suppliers in the country, and also given our volumes, it's a specific consideration. There are no specific questions for management, but just to close the loop on a few other questions for everybody's benefit. Would TBS consider divestitures of poor performing product lines? As we indicated in the presentation, SKU rationalization is a strategic objective, and although a number of SKUs will be discontinued in order to improve efficiencies in the factories, those are sometimes offset by innovations that are introduced. If you're- Nikki, if I could just add to that. You know, we are certainly prepared to review our portfolio and not just in terms of SKU rationalizations, but we have indicated in the past certain segments where we don't see high growth potential, or where the returns on capital are not at the levels that we'd like. It's not as if there's a long queue of prospective buyers coming to assess those assets. There's nothing in the portfolio that we're bound to forever. We've spoken before about, you know, our maize business, for example. It's operationally intricately linked with the entire mill bake business. You know, maize certainly remains a category where we will drive that business very hard. If we had a good commercial proposition to exit, we would. I think it goes beyond the SKU rationalization. Thanks. Now and then just quickly, any feedback on the hedging pilot program in the grains business? I think the active management of exposures through stop-loss has proved beneficial, and we did improve our rate relative to the benchmark. In terms of accessing derivative products such as options, those proved a little bit expensive as a result of the volatility. Certainly the active management through stop-loss has proved beneficial. I don't know if you wanna add to that. We have used some options in the course of this past financial year. Thank you, everybody, for your attendance. I think we covered off most of the questions, but I remain available to you should you wanna update your model or need a little bit more detail. Nikki. Thanks. Perhaps just one last comment from me. Yeah, just in closing to thank people for their time and just in terms of our future engagements. I think we've heard specifically from shareholders around access, broader access to management. We will, in this round of shareholder interactions, be providing access to some of the key executives, both functional and growth officers, in response to that feedback that we've had. Thank you. Before we go off, is there a question perhaps on the call? There are no questions on the telephone line. Thank you. Thank you so much. Go well, everybody. Bye.