Wrap Text
Results for the year ended 31 December 2020
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 2020 AND CASH DIVIDEND DECLARATION
RESULTS
The table below summarises the key features of the financial performance for the year ended 31 December
2020:
%
(R’000) F2020 F2019
change
Continuing operations
Total revenue 10 285 881 +4.0% 9 892 545
Gross profit margin 23.6% -0.4pp 24.0%
Normalised operating profit 774 093 -13.1% 890 336
(margin)
7.5% 9.0%
Normalised EBITDA
1 115 255 -5.0% 1 173 676
(margin) 10.8% 11.9%
Diluted EPS (cents) 12.3 -79.3% 59.4
Diluted HEPS (cents) 46.8 -21.7% 59.8
Normalised EPS (cents) 36.8 -55.3% 82.3
Normalised HEPS (cents) 71.3 -13.8% 82.7
All operations
Diluted EPS (cents) 12.3 -73.5% 46.5
Diluted HEPS (cents) 46.8 -15.8% 55.6
Balance sheet and cash flow indicators
Net interest-bearing debt to
1.3x 1.3x
Normalised EBITDA
Cash generated from operations 908 679 -3.8% 944 777
Capital investment in property, plant
345 000 401 000
and equipment
Cash conversion ratio 94% 91%
Summary of Results
• Group revenue for the year was 4.0% higher than the previous year. Revenue growth from food
categories, which constitute 92% of Group revenue, was 3.6%. Revenue within the Household and
Personal Care (HPC) category, which represents 8.0% of Group revenue, increased by 7.9%.
• The Group’s gross profit margin decreased by 0.4 percentage points from 24.0% the previous year
to 23.6%. This was mainly as a result of lower Food service channel revenue and, consequently,
plant throughput, which impacted plant utilisation within the Perishables category.
• The Denny division within the Perishables segment was significantly impacted by the slowdown in
Food service channel activity. In applying a conservative approach, a downward adjustment was
applied to the division’s five-year growth forecasts following lower volume sales and below-inflation
price realisation during the year under review. In doing so, the Group recognised a R198 million
impairment to goodwill attributable to Denny.
• Normalised operating profit decreased by 13.1% at a margin of 7.5% (2019: 9.0%), impacted by
COVID-19 related extraordinary expenses of R65 million and increased depreciation from the
completion of capital projects in 2019 and 2020.
• The Group’s net interest expense on interest-bearing debt declined 21.2% from R153.7 million to
R121.0 million, mainly due to a reduction in the Johannesburg interbank average lending rate
(JIBAR) and the implementation of a Group central treasury function in H2 2020 which saved R2.4
million of interest during the reporting period. The Group’s finance charges incurred on lease
liabilities increased 16.9% to R64.4 million from R55.1 million. Total Group finance charges,
therefore, decreased 11.2% to R185.4 million from R208.8 million.
• Cash generated from operating activities increased from R579.8 million to R637.2 million. This
was mainly due to improved cash flow from operations, reduced net interest and tax expenses.
These impacts were somewhat offset by an increased investment in net working capital. The
Group continued to invest in capacity enhancing projects in identified growth areas, with capital
expenditure of R345 million (2019: R401 million), representing 3.4% of net revenue (2019: 4.1%).
• Final dividend of 25 cents per share (2019: 25 cents per share), representing a Normalised HEPS
cover of 2.9 (2019:3.3).
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
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.
The full announcement can be found:
- On the JSE's website: https://senspdf.jse.co.za/documents/2021/jse/isse/lbre/FY_2020.pdf
- On the Company's website: 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 2020 have been audited by
Moore Cape Town Inc., who expressed an unqualified opinion thereon. The auditor’s report in terms of
International 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 2020.
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
The following salient dates will apply to the dividend payment:
• Declaration date Wednesday, 17 March 2021
• Last day to trade cum the final dividend Tuesday, 6 April 2021
• Shares commence trading ex final dividend Wednesday, 7 April 2021
• Record date Friday, 9 April 2021
• Payment in respect of the final dividend Monday, 12 April 2021
Share certificates may not be dematerialised or re-materialised between Wednesday, 7 April 2021 and
Friday, 9 April 2021, both days inclusive.
By order of the Board
Wendy Luhabe Andries van Rensburg
CHAIRMAN CEO
17 March 2021
Sponsor
The Standard Bank of South Africa Limited
Date: 17-03-2021 07:05:00
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