LIBSTAR HOLDINGS LIMITED - Trading Statement

Release Date: 17/08/2018 09:00
Code(s): LBR
 
Wrap Text
Trading Statement

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

In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Limited, Libstar is required to
publish a trading statement as soon as it is satisfied that a reasonable degree of certainty exists that
the financial results for the 6 months ended 30 June 2018, will differ by at least 20% from those of the
previous corresponding 6 months ended 30 June 2017.

Shareholders are advised that:

      -   Earnings per share (“EPS”) and headline earnings per share (“HEPS”) from continuing
          operations is expected to be between 11 cents and 14 cents or between 44% and 56%
          lower than the 25 cents for the comparative period;
      -   EPS from discontinued operations is expected to be between 1.3 cents loss and 0.7 cents
          loss or between 57% and 77% higher than the 3 cents loss for the comparative period; and
      -   HEPS from discontinued operations is expected to be between 1.2 cents loss and 0.8 cents
          loss or between 40% and 60% higher than the 2 cents loss for the comparative period.

EPS and HEPS include the effect of the issue of 120 million shares at R12.50 per share in terms of
the Group’s initial public offering (IPO), which increased the weighted average number of shares in
issue (net of treasury shares) from 468.9 million shares in the comparative period to 523.3 million in
the current period, an increase of 11.6%.

OPERATIONAL UPDATE

In a challenging trading environment, Libstar has shown strong revenue growth during the reporting
period. However, gross profit margins were negatively impacted by a national oversupply of fresh
mushrooms and the lower-margin Sonnendal Dairies business acquisition which has enhanced the
Group’s yoghurt manufacturing capabilities.

Despite these market conditions, Adjusted EBIT, presented in accordance with the accounting
policies set out in the Group’s pre-listing statement dated 24 April 2018, and after adjustment for
amortisation of customer contracts, unrealised foreign exchange movements, share appreciation
rights as well as other non-operating expenditure, is expected to be between R310 million and R320
million compared to R319.4 million for the comparative period. Adjusted EBITDA is expected to be
between R385 million to R400 million or 1% to 5% higher than the R381.3 million for the comparative
period.

The financial information on which this trading statement is based has not been reviewed or reported
on by Libstar’s external auditors.

Libstar expects to publish its reviewed interim financial results for the 6 months ended 30 June 2018
on Tuesday, 4 September 2018.


Johannesburg
17 August 2018

Sponsor
The Standard Bank of South Africa Limited

Investor relations
Nicholas Williams
Patamola
nicholas@patamola.co.za
+27 82 600 2192

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