Wrap Text
Results for the Year Ended 31 December 2019 and Cash Dividend Declaration
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”)
RESULTS FOR THE YEAR ENDED 31 DECEMBER 2019 AND CASH DIVIDEND DECLARATION
RESULTS
The year under review was characterised by another resilient performance by Libstar in challenging market
conditions. The improvements were driven by the contribution from its food-related categories of
Perishables, Groceries, Snacks & Confectionery and Baking & Baking Aids.
The Group has adopted the following new accounting standards with effect from 1 January 2019:
• IFRS 16 - Leases; and
• IFRS 9 – Financial Instruments (hedge accounting).
Libstar uses Normalised EBITDA, Normalised EPS from continuing operations and Normalised HEPS from
continuing operations, which exclude non-recurring, non-trading and non-cash items, as key measures to
indicate its true operating performance:
• Including the impact of new accounting standards (IFRS 16 and IFRS 9):
• Normalised EBITDA increased by 19.2%;
• Normalised EPS increased by 11.1%; and
• Normalised HEPS increased by 10.9%
• Excluding the impact of new accounting standards (IFRS 16 and IFRS 9):
• Normalised EBITDA increased by 5.1%;
• Normalised EPS increased by 14.3%; and
• Normalised HEPS increased by 14.1%
The table below summarises the key features of the financial performance for the year ended 31 December
2019. To facilitate comparison with the operating performance of the Group for 2018 , 2019 numbers above
and below in the Summary of Results section of this announcement, have been presented on a like-for-like
basis, which excludes the impact of the first-time adoption of IFRS 9 (hedge accounting) and IFRS 16
(leases), unless otherwise indicated.
Continuing operations
Like-for-like 2019 % change 2018
(R’000)
Revenue 9 892 545 +2.4% 9 659 597
Gross profit margin 24.0% +1.6 pp 22.4%
Normalised operating profit 854 799 +3.8% 823 525
(margin)
8.6% 8.5%
Normalised EBITDA
1 034 749 +5.1% 984 456
(margin) 10.5% 10.2%
Normalised EPS (cents) 84.7 +14.3% 74.1
Normalised HEPS (cents) 85.1 +14.1% 74.6
Diluted EPS (cents) 63.1 +30.9% 48.2
Diluted HEPS (cents) 63.5 +30.4% 48.7
Continuing operations
2019 % change 2018
After adoption of new accounting standards
Normalised EPS (cents) 82.3 +11.1% 74.1
Normalised HEPS (cents) 82.7 +10.9% 74.6
Diluted EPS (cents) 59.4 +23.2% 48.2
Diluted HEPS (cents) 59.8 +22.8% 48.7
Summary of Results
• Revenue growth from our food-related categories, which constitute 92% of the Group’s revenue,
was 3.3%, whilst revenue within the HPC cluster, which represents 8% of the Group’s revenue,
declined by 6.8%;
• Gross profit margins improved in each of the Group’s categories;
• Like-for-like normalised operating profit improved 3.8% and the normalised operating profit margin
improved from 8.5% to 8.6%;
• The Group’s net interest expense on interest-bearing debt declined 30.7% to R153.7 million;
• Cash generated from operating activities decreased by 10.5% to R452.2 million, mainly due to an
increased investment in working capital, which was somewhat offset by a reduced net interest
expense. Net working capital as a percentage of revenue, at 14.4%, remains within the Group’s
target range of 13.0%-15.0%;
• The Group continues to invest in capacity-enhancing projects in identified growth areas, with capital
expenditure of R401 million (F2018: R349 million), representing 4.1% of net revenue. This was
above the Group’s target range of 2.0%-3.0% mainly as a result of R110 million paid in relation to
capital expenditure projects during the year ended 31 December 2019 which will be completed
during the 2020 financial year. Excluding these work-in-progress projects, capital expenditure
amounted to 2.9% of revenue (2018: 3.0%), within the target range of 2.0%-3.0% of revenue;
• Dividend cover maintained, final dividend of 25 cents per share.
The information presented in the Summary of Results section above includes 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.
This short-form announcement is the responsibility of the directors and is only a summary of the information
in the full announcement. Any investment decision should be based on the full announcement.
The full announcement can be found
- On the JSE's website at https://senspdf.jse.co.za/documents/2020/jse/isse/lbre/FY_2019.pdf
- On the Company's website at https://www.libstar.co.za/investors/publications-and-presentations/
Copies of the full announcement may also be requested at Libstar’s registered office and offices of
our sponsor, at no charge, during office hours.
Report of the independent auditors
The consolidated annual financial statements for the year ended 31 December 2019 have been audited by
Moore Cape Town Inc., who expressed an unmodified opinion thereon. The auditor’s report in terms of
Internal Standards on Auditing, along with their key audit matters and the Annual Financial Statements, is
available at the following link: https://www.libstar.co.za/investors/publications-and-presentations/.
DECLARATION OF CASH DIVIDEND
The board of Libstar has approved and declared a final cash dividend of 25 cents per ordinary share (gross)
in respect of the year ended 31 December 2019.
In accordance with paragraphs 11.17 (a) (i) to (x) and 11.17 (c) of the JSE Listings Requirements the
following additional information is disclosed:
• The dividend has been declared from income reserves;
• The local Dividends Tax rate is 20% (twenty percent);
• The gross local dividend amount is 25 cents per ordinary share for shareholders exempt from the
Dividends Tax;
• The net local dividend amount is 20 cents per ordinary share for shareholders liable to pay the
• Dividends Tax
Libstar has 681 921 408 ordinary shares in issue.
Libstar's income tax reference number is 9526395174
Shareholders are advised of the following dates in respect of the final dividend:
• Last day to trade cum the final dividend Monday, 6 April 2020
• Shares commence trading ex the final dividend Tuesday, 7 April 2020
• Record date Thursday, 9 April 2020
• Payment in respect of the final dividend Tuesday, 14 April 2020
Share certificates may not be dematerialised or re-materialised between Tuesday, 7 April 2020 and
Thursday, 9 April 2020, both days inclusive.
By order of the Board
Wendy Luhabe Andries van Rensburg
Chairman CEO
18 March 2020
Sponsor
The Standard Bank of South Africa Limited
Date: 18-03-2020 07:30:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
