12 hours ago
Libstar's shares surge as it flags higher revenue
South African food producer Libstar Holdings said on Thursday its revenue rose 10.1% in the 21-week period to May 30, 2025, boosted by strong volume growth across both its Ambient and Perishable product categories.
South African food producer Libstar Holdings said on Thursday its revenue rose 10.1% in the 21-week period to May 30, 2025, boosted by strong volume growth across both its Ambient and Perishable product categories.
The shares rose 8.12% to R3.33 in morning trade on the JSE on Thursday.
This as consumers remain under pressure despite moderating inflation and lower interest rates.
"Import and export supply chain volatility persisted, evidenced by extended import lead times and intermittent delays in securing export container availability. Against this backdrop, Libstar's category and channel revenue growth exceeded market growth during the five-month period ended 30 May 2025," Libstar said.
Libstar, with brands including Cape Herb & Spice, Lancewood, Cook 'n Bake, and Roma, said volumes increased 5.2%, with price and mix changes contributing a further 4.9%.
Volume sales increased in both the Ambient Products and Perishable Products super- categories. Group Retail & Wholesale, Food Service and Export channel volumes increased, reflecting positive trading momentum when compared to the results for the year ended December 31, 2024.
Libstar's Ambient Products category posted an 11.5% revenue increase, supported by volume growth of 5.4% and price/mix changes of 6.1%. Wet condiments benefited from expanded own-brand ranges and growing private label demand, while the Cape Herb & Spice brand continued to gain traction in global markets.
Meanwhile, the wet condiments sub-category continued its strong momentum in Retail & Contract manufacturing channel sales, driven by extended own-branded ranges, continued growth of private label offerings, increased contract manufacturing demand and the sustained improvement of its baking-aids ranges, operations and distribution reach. In the dry condiments sub-category, the group's Cape Herb & Spice brand continued its growth momentum supported by the roll-out of existing and new international listings.
Libstar said the bolstered Food Service channel support structure implemented in 2024 continued to underpin growth of the group's meal ingredients and other Ambient Products sub-categories.
Meal ingredients, snacks and spreads sub-category revenue in the Retail channel benefited from the improved operational performance of the group's snack operations and the launch of new spreads product ranges. This was partly offset by logistical disruptions and operational delays affecting imported meal-ingredient lines. The baking sub-category benefited from higher Food Service channel volumes and resilient Retail channel demand.
Libstar's Perishable Products category revenue increased by 8.9%, with selling price inflation and mix changes contributing 4.0% to sales growth. Sales volumes increased by 4.9% driven by the dairy and value-added meat sub-categories growth in the Retail and Food Service channels.
Growth of the dairy sub-category was supported by a more balanced supply-demand dynamic following industry-wide production and pricing pressures experienced in 2024. Libstar said this is expected to contribute to lower and more sustainable working capital investments in the sub- category at the close of the interim reporting period.
Demand for coated chicken products in the value-added meat sub-category continued to increase and resulted in double-digit revenue growth, but has further constrained production capacity. Beef volume sales were lower than the prior corresponding period.
"Despite the late- May foot-and-mouth disease outbreak disrupting beef supply chains nationally, the group's rapid contingency response ensured continued supply to its customers. Beef sales are expected to be weaker in June and July until supply chains normalise," Libstar said.
Looking ahead, Libstar said it expects continued positive trading momentum for the rest of the year as it delivers sustainable positive outcomes from the growth initiatives it has implemented.
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