Answer:
So, you might be wondering how Tiger Brands distributes their profit among their shareholders. Well, let me break it down for you in casual terms. Tiger Brands is a South African company that operates in the consumer goods sector, producing various food and beverage products. When they make a profit, they have three options to distribute it: dividends, retained earnings, or share buybacks. Dividends are like little gifts given to shareholders as a proportion of the company's profits. Retained earnings are when Tiger Brands decides to keep some of the profit within the company for future growth and investments. Lastly, share buybacks occur when Tiger Brands repurchases its shares from the open market, reducing the number of outstanding shares and increasing earnings per share for existing shareholders. So basically, these different methods allow them to reward shareholders with cash through dividends or potentially increase shareholder value through retained earnings and share buybacks.
Hope it helped!