Latest news with #LibstarHoldings
IOL News
12 hours ago
- Business
- IOL News
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. BUSINESS REPORT Visit:
Yahoo
05-04-2025
- Business
- Yahoo
Do These 3 Checks Before Buying Libstar Holdings Limited (JSE:LBR) For Its Upcoming Dividend
Readers hoping to buy Libstar Holdings Limited (JSE:LBR) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. The ex-dividend date is commonly two business days before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. In other words, investors can purchase Libstar Holdings' shares before the 9th of April in order to be eligible for the dividend, which will be paid on the 14th of April. The company's next dividend payment will be R00.15 per share, and in the last 12 months, the company paid a total of R0.15 per share. Looking at the last 12 months of distributions, Libstar Holdings has a trailing yield of approximately 4.7% on its current stock price of R03.19. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. We need to see whether the dividend is covered by earnings and if it's growing. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Libstar Holdings lost money last year, so the fact that it's paying a dividend is certainly disconcerting. There might be a good reason for this, but we'd want to look into it further before getting comfortable. Considering the lack of profitability, we also need to check if the company generated enough cash flow to cover the dividend payment. If cash earnings don't cover the dividend, the company would have to pay dividends out of cash in the bank, or by borrowing money, neither of which is long-term sustainable. Fortunately, it paid out only 25% of its free cash flow in the past year. Check out our latest analysis for Libstar Holdings Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Companies with falling earnings are riskier for dividend shareholders. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. Libstar Holdings reported a loss last year, and the general trend suggests its earnings have also been declining in recent years, making us wonder if the dividend is at risk. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Libstar Holdings's dividend payments per share have declined at 6.2% per year on average over the past six years, which is uninspiring. It's never nice to see earnings and dividends falling, but at least management has cut the dividend rather than potentially risk the company's health in an attempt to maintain it. Get our latest analysis on Libstar Holdings's balance sheet health here. Has Libstar Holdings got what it takes to maintain its dividend payments? It's hard to get used to Libstar Holdings paying a dividend despite reporting a loss over the past year. At least the dividend was covered by free cash flow, however. Bottom line: Libstar Holdings has some unfortunate characteristics that we think could lead to sub-optimal outcomes for dividend investors. Having said that, if you're looking at this stock without much concern for the dividend, you should still be familiar of the risks involved with Libstar Holdings. For example - Libstar Holdings has 3 warning signs we think you should be aware of. If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
