Consumer packaged goods producer and supplier Libstar, which will publish its results for the 2023 financial year on March 5, says its trading performance, operating margins and cash generation improved significantly in the second half of the year, compared with the first half of the year, despite ongoing disruptions in the supply chain, persistent loadshedding and low consumer confidence.
Revenue growth accelerated from 4% in the first half of the year to 7.3% in the second half of the year, driven by improved demand in the retail and food service channels.
Libstar expects to report normalised earnings before interest, taxes, depreciation and amortisation (Ebitda) of between R988-million and R1.01-billion for the full-year – a decrease of 2.2% to 4.3% compared with the normalised Ebitda of R1.03-billion reported for 2022.
Further, headline earnings per share (HEPS) are expected to be between 55.6c and 57.8c – an increase of 23.5% to 28.5% on the HEPS of 45c reported for 2022.
HEPS, however, included R120-million in insurance proceeds related to a fire at Denny Mushrooms Shongweni and excluded impairment charges.
Following consideration of the reduced total mushroom production from its two remaining mushroom farms, the group recognised an impairment charge of R73-million net of tax in the 2023 financial year as part of its annual impairment assessment of this business unit.
Additionally, an impairment charge of R43-million net of tax was recognised in relation to the Khoisan Gourmet business unit owing to prolonged weak international demand for bulk tea.
Normalised HEPS, which excludes both insurance proceeds and impairment charges, are expected to be between 57c and 59c – a decrease of 9.7% to 12.7% on the normalised HEPS of 65.3c reported for 2022.
Meanwhile, earnings per share (EPS), which includes insurance proceeds and impairment charges, are expected to be between 37c and 39c, compared with the prior year's loss a share of 0.9c.
Normalised EPS, which excludes insurance proceeds and impairment charges, are expected to be between 38.4c and 40.2c, compared with the normalised EPS of 18.8c reported for 2022.