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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")
DISPOSAL OF FRESH MUSHROOM OPERATIONS, VOLUNTARY TRADING UPDATE AND
INVESTOR PRE-CLOSE CONFERENCE CALL
DISPOSAL OF FRESH MUSHROOM OPERATIONS
Introduction
Libstar is pleased to advise shareholders that the Group has disposed of its fresh mushroom
operations effective from 1 December 2025 (the "Disposal").
The disposal represents a further decisive step in simplifying the Group's portfolio by
sharpening its focus on priority categories with sustainable growth potential.
Subject Matter and Financial Impact of the Disposal
The subject matter of the Disposal is the Group's fresh mushroom business, as a going
concern, inclusive of the properties situated in Gauteng (Deodar) and KwaZulu-Natal
(Shongweni).
The subject matter of the Disposal excludes:
' The property situated in the Western Cape (Phesantekraal), which remains subject to
closure as communicated to shareholders on 16 September 2025. The Phesantekraal
property will be divested by the Group in due course; and
' The Denny brand, which has been licensed to the purchaser for exclusive use in the
fresh mushroom category. The Group will continue to produce and market value-added
Denny-branded products, most notably within the Wet Condiments category.
The Group expects to report a loss on sale before tax of its fresh mushroom operations in the
annual financial results of the Group for the year ended 31 December 2025 of between R45
million and R55 million. The aforementioned loss on sale will be included in the Group's
reported Earnings per Share, but excluded from the Group's reported Headline Earnings per
Share.
DISPOSAL OF HOUSEHOLD AND PERSONAL CARE BUSINESS
Aligned with the Group's strategic direction to exit non-food categories and focus exclusively on
food manufacturing, Libstar's Board of Directors (the "Board") is currently evaluating non-
binding expressions of interest in respect of the potential acquisition of the remaining
Household and Personal Care business, Contactim.
TRADING UPDATE
This voluntary pre-close trading update pertains to the 47-week period ended 21 November
2025 compared to the prior corresponding 47-week period ended 22 November 2024. The
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results of the Group's fresh mushroom business, have been excluded from the current and
prior period to provide a like-for-like comparison of the Group's continuing operations.
Market Overview
Retail sales value growth for Libstar's Total Defined Market (excluding staples), continued to
decelerate in Q3. Wholesale channel sales growth exceeded growth in the Retail channel.
Consumers, therefore, continue to face financial pressure, notwithstanding moderating
inflation and interest rates.
Against this background, Libstar's portfolio delivered growth ahead of its Total Defined Market,
thereby sustaining the resilient trading momentum of H1.
Revenue Growth
Libstar's year-to-date revenue increased by 6.7%. Excluding the impact of the below
extraordinary items, Group volumes increased by 3.1% with a price/mix contribution of 3.6%.
As communicated in the Group's interim results for the six months ended 30 June 2025, sales
volumes were increased by significant extraordinary events, the year-to-date effects of which
are:
' A 9.0% increase in Group volumes as a result of the on-sale of unprocessed raw milk to
Industrial channel customers in the Dairy sub-category, which facilitated the balancing
of raw material and finished goods inventory levels; offset by
' A 1.2% decrease in Group volumes as a result of the closure of the Chamonix
Springwater business in the prior year; and
' A 1.5% decrease in Group volumes as a result of lower Industrial channel bulk vinegar
sales due to Q1 2025 capacity constraints.
Ambient Product Category
Ambient Products category revenue increased by 5.6%, driven by the continued resilient
performance of the Wet Condiments sub-category. Price and mix changes contributed 5.9% of
revenue growth while volumes decreased by 0.4%.
Excluding the impact of lower volume sales due to (i) the closure of Chamonix Springwater and
(ii) lower Industrial channel bulk vinegar sales, noted aforementioned, category volumes
increased by 4.5%.
Volume growth was driven:
' In the Retail and Wholesale channel, by sales of Wet Condiments and Principal Brands;
and
' In the Food Service channel, by sales of Wet & Dry Condiments, Baking Aids, Baked
goods and Meal-Ingredients.
Export volumes of Dry Condiments were lower than the prior year, characterised by a positive
mix change to Libstar Branded products and reduced private-label sales to discount retailers in
Australia, the UK, and Japan. The Cape Herb & Spice brand continued its double-digit growth in
local and international markets.
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Perishable Product Category
Perishable Products category revenue increased by 8.1%, with volumes up 23.2% and a
price/mix reduction of 15.0%.
Excluding the impact of raw milk sales, noted aforementioned, category volumes increased by
1.4%.
Volume growth was driven by value-added chicken products in the Retail and Food Service
channels. Volume sales of core Dairy sub-category items (cheese, butter and yoghurt)
increased by 4.7%, reflecting Lancewood's continued market leadership.
Gross Profit Margins
The Group's gross margins tracked ahead of the prior year.
Net Debt
The Group's year-to-date net interest-bearing debt to Normalised EBITDA ratio reduced from
the 1.3 times reported in H1 2025, driven by focused capital allocation and continued
efficiencies in the Dairy and Dry Condiment sub-categories. The Group is, therefore, on track to
deliver its year-end gearing and capital expenditure guidance.
UPDATE REGARDING STRATEGIC REVIEW
Shareholders are referred to the previous cautionary announcements published by Libstar on
SENS, the most recent of which was released today, 10 December 2025.
Shareholders are therefore advised to continue to exercise caution when dealing in Libstar
securities until a further announcement is made.
INVESTOR PRE-CLOSE CONFERENCE CALL
Shareholders are advised that Libstar will host a pre-close investor call at 17:00 (CAT) today, 10
December 2025, to provide an update for the year-to-date period ended 21 November 2025,
prior to entering a closed period on 31 December 2025.
Participants should register for the online meeting using the following link:
https://www.corpcam.com/Libstar10122025
OTHER INFORMATION
The financial information on which this pre-close trading update is based, has not been
reviewed nor reported on by the Group's external auditors.
The Board accepts responsibility for the information contained in this announcement and
certifies that, to the best of its knowledge and belief, the information relating to Libstar is
accurate and that no information has been omitted which is likely to affect the significance of
this announcement.
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Libstar expects to publish its financial results for the year ended 31 December 2025 on or about
17 March 2026.
Cape Town
10 December 2025
Sponsor
The Standard Bank of South Africa Limited
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Date: 10-12-2025 08:05:00
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