JOHANNESBURG, May 27 (Reuters) - South Africa's Tiger Brands reported an 11% rise in half-year profit on Monday as the country's biggest food producer hiked prices to recover higher input costs, although that dampened volume growth as customers reined in spending.
Consumer goods producers globally have raised prices to cope with surging costs for almost all raw materials, energy, and packaging after Russia's invasion of Ukraine compounded pandemic-related supply chain logjams.
"Consumers remain constrained and continue to rationalise spend, prioritising value offerings and staple categories," the company said in a statement.
The owner of Jungle Oats and Koo baked beans said its headline earnings per share from total operations, a leading profit measure in South Africa, rose to 808 cents in the six months ended March 31, from 731 cents a year ago.
It also declared an interim dividend of 350 cents per share, up 9%.
Group revenue declined 0.8% to 19.2 billion rand ($1.04 billion) year-on-year, as higher prices squeezed volumes.
The company said it expected customer spending to continue, citing restrained wage growth amid the surge in inflation. ($1 = 18.4040 rand) (Reporting by Sfundo Parakozov Editing by Nqobile Dludla, Bhargav Acharya, Kirsten Donovan)
