Libstar achieves 2.8% revenue growth for 2020
Ahead of its full-year results release on March 17, JSE-listed food and beverage producer Libstar Group has advised that its revenue declined by an average 2.8% for the year ended December 31, 2020.
The revenue decline was driven by a 23.8% year-on-year decline in the company’s food service segment, followed by a 0.9% decline in its industrial and contract manufacturing segment.
Revenue growth in the year under review was supported by a 12.3% revenue growth year-on-year in the retail and wholesale segment, while exports recorded a 6% year-on-year increase in revenue.
Libstar says the financial year was characterised by significant supply chain disruptions and changes in shopping behaviour, which were directly related to the Covid-19 pandemic.
The retail and wholesale segment’s contribution to group revenue increased to 64.4% in the year under review, compared with a contribution of 59.4% in the year ended December 31, 2019.
The company attributed revenue growth in this segment to continued robust retail demand and the beneficial timing effects of the sale of imported value-added meal ingredients in July, after major port delays in June.
These timing benefits were not repeated during the fourth quarter, as peak retailer demand during the festive season was largely satisfied by Libstar’s third-quarter deliveries.
The food service segment’s contribution to group revenue decreased from 18.3% in the prior year to 13.5% in the year under review.
The segment continued to trade at between 80% and 85% of prior year levels during the fourth quarter of 2020, owing to reduced occupancies of hospitality venues and restaurants in the wake of the pandemic.
Libstar says its Cape Herb & Spice business led the group’s export segment efforts, with a focus on dry condiments in the groceries category.
The performance was bolstered by continued demand for exported private label dry condiments, as well as substantially improved shipment fulfilment rates from July onwards following harbour congestion experienced in the second quarter.
In terms of industrial and contract manufacturing, the company says fourth-quarter revenues were adversely impacted on by reduced demand from national and multinational brand owners owing to the slowdown in food service markets.
Revenue growth in the second half of the year of 3.6% exceeded the 1.9% growth in revenue during the first half of the year, resulting in a 2.8% revenue growth for the full-year.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation