LIBSTAR HOLDINGS LIMITED - Trading Update And Trading Statement For The Year Ended 31 December 2019

Trading Update And Trading Statement For The Year Ended 31 December 2019

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 UPDATE AND TRADING STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2019

TRADING UPDATE

Group revenue for the year ended 31 December 2019 was 2.4% higher than the previous year.
Gross profit margins improved in each of the Group’s product categories. Lower dry-condiment
input costs, favourable sales mix changes as well as the Group’s continued focus on procurement
practices, production efficiencies and overall equipment effectiveness contributed to the improved
margin result.

Group normalised EBITDA, excluding the impact of IFRS 16 (leases), is expected to increase by
between 3.6% and 6.6% (R1020.1 million to R1049.7 million).

The Group’s net interest expense on interest-bearing debt, excluding the impact of IFRS 16
(leases), declined by 30.7% to approximately R153.7 million as a result of the R700 million
reduction in net debt levels after Libstar’s JSE listing in May 2018 and more favourable Group
debt facilities.


TRADING STATEMENT

The weighted average number of shares in issue increased by 5.5% to 598 million following the
JSE listing during the comparative period.

The Group reports on continuing operations which exclude the dairy blend and fruit concentrate
business of Elvin held for sale at 30 June 2019 and disposed of with effect from 1 November
2019.

The Group has adopted IFRS 16 (leases) and IFRS 9 (hedge accounting) for the first time during
the six-month interim reporting period ended 30 June 2019.
EXCLUDING the impact of the first-time adoption of IFRS 16 and IFRS 9, shareholders are
advised that the Group expects to report earnings per share (‘EPS’), headline earnings per share
(‘HEPS’), normalised EPS from continuing operations (‘normalised EPS’) and normalised HEPS
from continuing operations (‘normalised HEPS’) within the ranges reflected in the table below:




                                                                Expected year         Reported
                                                                     ended 31       year ended
                                                                    December      31 December
                                                                          2019            2018
                                          Percentage change            (cents)          (cents)
  Total basic and diluted EPS              +22.3% to +30.3%       47.9 to 51.1             39.2
     - From continuing operations          +25.5% to +33.5%       60.5 to 64.3             48.2
  Total basic and diluted HEPS             +22.4% to +30.4%       56.2 to 59.8             45.9
     - From continuing operations           +23.5% to 31.5%        60.2 to 64.0            48.7
  Normalised EPS                           +11.4% to +16.4%       82.6 to 86.3             74.1
  Normalised HEPS                          +10.2% to +15.2%       82.2 to 86.0             74.6



The information presented in the table above constitutes pro-forma financial information in terms
of the JSE Listings Requirements. The pro forma financial information presented in this
announcement, which is the responsibility of the Group's directors, has been prepared for
illustrative purposes only, and may not fairly present the Group's financial position, changes in
equity, cash flows or results of operations.

INCLUDING the impact of first-time adoption of IFRS 16 and IFRS 9, shareholders are advised
that the Group expects to report EPS, HEPS, normalised EPS and normalised HEPS within the
ranges reflected in the table below:



                                                                Expected year         Reported
                                                                    ended 31        year ended
                                                                   December       31 December
                                                                         2019             2018
                                          Percentage change            (cents)          (cents)
  Total basic and diluted EPS              +12.8% to +20.8%       44.2 to 47.4             39.2
     - From continuing operations          +17.8% to +25.8%       56.8 to 60.6             48.2
  Total basic and diluted HEPS             +14.2% to +22.2%       52.4 to 56.1             45.9
     - From continuing operations          +15.9% to +23.9%       56.5 to 60.3             48.7
  Normalised EPS                            +8.2% to +13.2%       80.2 to 83.9             74.1
  Normalised HEPS                           +7.2% to +12.2%       79.9 to 83.7             74.6

The information included in this announcement has not been reviewed or reported on by the
Group's auditors.

The results for the year ended 31 December 2019 are anticipated to be published on or about
Wednesday, 18 March 2020.


Johannesburg
25 February 2020

Sponsor
The Standard Bank of South Africa Limited

Date: 25-02-2020 08:30:00
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