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Trading statement for the six months ended 30 June 2022 and voluntary announcement regarding the acquisition
Libstar Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 2014/032444/06)
(JSE share code: LBR)
(ISIN: ZAE000250239)
("Libstar" or the “Group”)
TRADING STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2022 AND VOLUNTARY
ANNOUNCEMENT REGARDING THE ACQUISITION OF CAPE FOODS
Trading
Group trading for the six months ended 30 June 2022 (H1) continued to be impacted by supply
chain disruptions, significant cost inflation and consumer pressures.
Notwithstanding these challenges, revenue increased in all Group categories with total revenue
up 9.6%. Volume sales grew by 6.9%, assisted by increased volumes of hard cheese in
Lancewood (Perishables category) and sauces, vinegars, and other condiments (Groceries
category). Groceries category volumes increased year-on-year despite lower export volumes of
value-added herbs and spices due to ongoing shipping delays.
Group gross profit margins were largely in line with the H1 prior period despite significant raw
material and energy cost inflation.
Accordingly, the Group expects to report growth of Normalised Earnings Before Interest and
Taxation (EBIT) and Normalised Earnings before Interest, Taxation, Depreciation and
Amortisation (EBITDA) for the period ended 30 June 2022 within the following ranges:
Reported for the
Expected for the six- six-month period
Percentage month period ended ended
change 30 June 2022 30 June 2021
R'000 R'000
Normalised EBIT* +8.6% to +11.6% R342,138 to R351,592 R315,116
Normalised EBITDA* +3.6% to +5.6% R488,481 to R497,909 R471,413
*Continuing operations
Other items
Unrealised foreign currency translation gains reduced from a gain of R1.1 million to a loss of
R12.6 million. Other income for the H1 period reduced from R15.1 million to R9.4 million. Net
finance charges (excluding IFRS 16) increased by 3.0% from R45.8 million to R47.1 million.
Discontinued operations
The Household and Personal Care (HPC) divisions of Chet Chemicals and Contactim remain
classified as held for sale from the previous full-year reporting period, as the Board continues to
evaluate the strategic positioning of the HPC business to optimise the Group’s portfolio
composition and returns. The non-current assets of Glenmor have also been classified as held
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for sale as the Group completed the exit from this investment shortly after the close of H1. The
HPC divisions of Chet Chemicals, Contactim and Glenmor reported a reduced operating loss
relative to the prior H1 period. The improved operating result from HPC has contributed to the
increase in the Group’s expected H1 EPS and HEPS from all operations.
Trading statement
The Group accordingly advises shareholders, in accordance with Section 3.4 (b) of the Listings
Requirements of the JSE Limited, that Libstar expects to report Earnings Per Share (EPS),
Headline Earnings Per Share (HEPS), Normalised EPS and Normalised HEPS, within the ranges
reflected in the table below:
Expected for the six- Reported for the six-
month period ended month period ended
30 June 2022 30 June 2021
Percentage change (cents) (cents)
Total EPS^ +90.5% to +100.0% 24.0 to 25.2 12.6
Total HEPS^ +95.7% to +106.3% 23.9 to 25.2 12.2
Normalised EPS* +10.1% to +15.2% 34.8 to 36.4 31.6
Normalised HEPS* +11.5% to +16.7% 34.8 to 36.4 31.2
^ from continuing and discontinued operations
* from continuing operations
The diluted weighted average number of shares in issue at the end of the H1 reporting period
was 597,352,977 (H1 2021: 597,880,009).
The financial information in this announcement has not been reviewed or reported on by Libstar’s
external auditors.
These interim results will be published on 13 September 2022.
VOLUNTARY ANNOUNCEMENT: ACQUISTION OF CAPE FOODS
Libstar is pleased to announce the conclusion of an agreement for the acquisition of Cape Foods
Proprietary Limited ("Cape Foods") (the "Acquisition" or “Transaction”).
Founded in 2002 by Gerhard Martin, Cape Foods, based in Cape Town, is a manufacturer of a
wide range of branded and private label herb, spice and seasoning blends. Its facilities are
accredited locally and internationally by, inter alia, the British Retail Consortium, Business Social
Compliance Initiative and United States Food and Drug Administration. Cape Foods’ product
range is marketed for sale to retailers and distributors both locally and internationally in more than
30 countries.
The Transaction is in line with Libstar’s strategy to grow its basket of non-commoditised food
products in existing categories . The Acquisition provides access to new markets and value-added
products in the dry condiments category.
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The Acquisition falls below the threshold for categorisation in terms of the JSE Limited Listings
Requirements, and therefore this is a voluntary announcement provided for information purposes
only.
The transaction is subject to the fulfilment of regulatory suspensive conditions by no later than 30
November 2022.
10 August 2022
Sponsor
The Standard Bank of South Africa Limited
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Date: 10-08-2022 12:30:00
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