Tiger Brands said Khotso Mokhele would step down as chairman of the board on December 31.

Mokhele will be replaced by Geraldine Fraser-Moleketi, a lead independent director at mining firm Exxaro, who will take over on Jan. 1 after a handover period starting from September.

Fraser-Moleketi, 60, served in various cabinet roles from 1996 to 2008, including as Minister of Public Service and Administration and Minister for Welfare and Population Development.

The owner of popular food brands Jungle Oats and Tastic rice also said it expected its headline earnings per share (HEPS) from total operations for the year ending September 30 to fall between 35 percent and 40 percent from the 1,322 cents ($0.7693) reported a year earlier.

Excluding its Deli Foods business in Nigeria and processed meat business, which are both discontinued, HEPS - the main profit measure in South Africa that strips out certain one-off items - is expected to fall by up to 33 percent.

The firm blamed a poor first half performance, Covid-19 related costs of R255 million ($14.85 million) and restructuring costs estimated at about R70 million

Tiger Brands also said it would lose R302 million in the period from deferring food price increases as part of government regulations to protect consumers during the lockdown.

It said the loss was significant when compared with an operating profit of R1.4 billion from continuing operations in the previous six-months period.

While revenues rose by 11 percent in the three months to June, thanks to increased at-home consumption, volumes in categories such as baby nutrition and products for the food services industry suffered.

REUTERS