Tiger Brands’ share price fell 8.5% to R412.50 on Wednesday after it warned shareholders revenue was suffering from lower prices and demand.

Revenue for the four months to end-January declined 5% from the corresponding period a year earlier, Tiger Brands said in a trading update.

The fast moving consumer goods group said this was partly due to overall deflation of about 1%, but also the volume of food it sold falling 4%.

Its exports of deciduous fruit had suffered from the stronger rand.

Regarding its chances of growing revenue for the financial year to end-September after a poor start, Tiger Brands said: "Any meaningful recovery remains dependent on an improved consumer environment which may be influenced by measures to be announced in the budget speech later today.

"The decrease in revenue was aggravated by price deflation in some soft commodities and higher levels of discounting in the domestic business as the group seeks to manage its competitiveness on shelf," the trading update said.

"The overall volume decline was driven mainly by the home and personal care categories and exports. Home care’s performance was impacted primarily by lower demand due to a delayed pest season and an unfavourable product mix, whilst personal care was negatively affected by increased competition and overall market contraction."