COMPANY NEWS IN BRIEF

South Africa's Tiger Brands profit rise

South Africa's biggest food producer Tiger Brands reported on Thursday a 21% rise in half-year profit, supported by strong revenue growth in the first quarter, and resumed an interim dividend of 320 cents a share.

Headline earnings per share the main profit measure in South Africa from continuing operations rose to 741 cents in the six months to March 31, it said, compared with 613 cents a year earlier.

The owner of popular brands such as Jungle Oats, Albany bread and Tastic rice said revenue from continuing operations increased by 8% to 16.4 billion rand (US$1.17 billion), underpinned by price inflation of 9%. This was offset slightly by an overall volume decline of 1%.

Group operating income before impairments, abnormal items and accounting charges rose by 16% to R1.6 billion, while operating margin, also before those items, rose to 9.6%.

"The performance was supported by strong revenue growth in the first quarter of the financial year, whilst cost saving and efficiency initiatives gained traction across all segments of the portfolio, leading to positive operating leverage for the full six-month period," it said. - Nampa/Reuters

BHP delivers first iron ore at Flank

BHP Group has produced its first iron ore at its US$3.6 billion South Flank operations in the central Pilbara region of Western Australia, it said on Thursday.

South Flank, alongside BHP's Mining Area C, will form the largest operating iron ore hub in the world, producing 145 million tonnes of the steel-making material each year, the company said in a statement.

It comes as iron ore prices reached records above US$230 a tonne this month driven by China's industrialisation drive as it emerges from the Covid-19 pandemic that has led to a surge in demand for steel, as well as supply constraints from Brazil.

The ore, mined from the lands of Aboriginal partners the Banjima people, will improve BHP's average iron ore grade to 62% iron content from 61% and the overall proportion of high-grade lump to 30% to 33% from 25%.

"This is a major project that is creating thousands of jobs and again shows why the resources sector is so important to our national economy," said Australian Minister for Resources Keith Pitt. - Nampa/Reuters

Glencore, Umicore to trace battery cobalt

Mining and trading company Glencore and other miners are joining forces with battery material supplier Umicore to make the cobalt used in electric cars traceable using blockchain technology, they said in a statement.

Miners and carmakers, under pressure to show electric vehicle batteries are sourced responsibly, are exploring the usefulness of blockchain - a digital platform for recording and verifying transactions that is shared across a network of computers - to improve scrutiny of supply chains and show sourcing does not rely on conflict minerals or child labour.

Umicore, Glencore, China Molybdenum Co (CMOC) and Eurasian Resources Group (ERG) will pilot blockchain technology RealSource until the end of 2021 and expect to roll it out in 2022.

Cobalt is in high demand as it is a key mineral for making lithium-ion batteries, as governments and consumers clamp down on fossil fuels such as diesel and gasoline with targets for cutting emissions.

Governance is however challenging as the majority of supplies are from the Democratic Republic of Congo, where Glencore, CMOC and ERG own their mines.- Nampa/Reuters

Naspers investing R1.4 billion

Established in 1915, Naspers has transformed itself to become a global consumer internet company and one of the largest technology investors in the world.

Through Prosus, the group operates and invests globally in markets with long-term growth potential, building leading consumer internet companies that empower people and enrich communities.

Prosus has a listing on Euronext Amsterdam and a secondary listing on the Johannesburg Stock Exchange and Naspers is the majority owner of Prosus.

In South Africa, Naspers is one of the foremost investors in the technology sector and is committed to building its internet and ecommerce companies in the country. These include Takealot, Mr D Food, Superbalist, OLX, Autotrader, Property24 and PayU, in addition to Media24, South Africa's leading print and digital media business.

Naspers is also focused on stimulating South Africa's local tech sector through Naspers Foundry. This is a R1.4 billion investment targeting early stage technology companies in South Africa that seek to address big societal needs to help address youth unemployment in impoverished communities. - Nampa/Reuters

Discovery extends CEO contract

Discovery Inc extended Chief Executive Officer David Zaslav's employment contract through Dec. 31, 2027, as he is expected to lead the proposed new company to be created by combining media assets with AT&T Inc.

Discovery and AT&T, owner of HBO and Warner Bros studios, said on Monday they will form a standalone global entertainment and media business.

The enterprise value of the company will be more than US$120 billion, carrying US$58 billion in debt, including US$43 billion from WarnerMedia and US$15 billion from Discovery.

Discovery said on Tuesday the contract extension for Zaslav, whose previous contract with the company ran through 2023, was made in connection with the agreement between AT&T and Discovery.

Zaslav, who joined Discovery as president and CEO in 2007, played a part in the company's 2018 acquisition of US cable TV network owner Scripps Networks Interactive. - Nampa/Reuters - Nampa/Reuters