Wrap Text
Unaudited Interim Results for the Six-Month Period ended 30 June 2026
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”)
UNAUDITED INTERIM RESULTS FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2026
SALIENT FEATURES
Introduction
During the six months ended 30 June 2026, Libstar made substantial progress against the strategic
priorities outlined at its March Capital Markets Day. Core categories delivered resilient performances,
while historically underperforming sub-categories, including Baking and Snacking, showed encouraging
improvement. Against this backdrop, earnings for the period fell short of expectations, with the operational
underperformance concentrated predominantly in the Dickon Hall Foods division and Dry Condiments
sub-category. Subsequent to the reporting period, the Montagu Foods site integration was completed
broadly in line with plan, the Cape Herb & Spice consolidation project continued to progress according to
schedule, and the Group further strengthened its balance sheet by disposing of its Phesantekraal
property in the Western Cape.
Market context
The consumer environment remained severely constrained during the first six months of 2026. Industry
data showed a continued slowdown in Food (excluding Staples) value growth, with annual growth rates
decelerating materially over the period as consumers remained under pressure. Low levels of food
inflation, and deflation in certain categories, suppressed sales value growth across the sector, while
manufacturers continued to contend with higher packaging, logistics and distribution costs. This
combination of muted revenue growth and ongoing cost inflation created a difficult operating backdrop
and reinforced the importance of Libstar's strategy of channel diversification, category leadership,
operational simplification and pricing discipline.
Results summary
The Group uses Normalised EBITDA, Normalised Earnings per Share (EPS) and Normalised Headline
Earnings per Share (HEPS) from continuing operations, which exclude non-recurring, non-trading, and
non-cash items, as the key measures to indicate its true operating performance.
Libstar’s half-year results are summarised in the table below:
(R’000) H1 2026 % change H1 2025^
Continuing operations
Total Revenue 5 803 965 +0.7% 5 763 121
Gross profit margin 21.5% -0.7pp 22.2%
Normalised operating profit 272 990 -10.9% 306 406
(margin) 4.7% 5.3%
Normalised EBITDA 453 165 -4.3% 473 768
(margin) 7.8% 8.2%
Basic EPS (cents) 8.8 -47.3% 16.7
Basic HEPS (cents) 12.9 -29.1% 18.2
Normalised EPS (cents) 20.1 -13.4% 23.2
Normalised HEPS (cents) 24.2 -2.4% 24.8
Balance sheet and cash flow indicators
Net interest-bearing debt to Normalised EBITDA 1.2 1.3
Cash generated from operating activities
442 753 -5.3% 467 300
(excluding net working capital)
Cash generated from operations (including net
342 788 -31.9% 503 716
working capital)
Capital investment in property, plant and
145 333 73.6% 83 717
equipment
Cash conversion ratio 70% 107%
^ Prior period financial information has been restated to exclude the Denny Mushrooms division, which was
treated as a discontinued operation and disposed of in the prior financial year.
Category performance
Ambient Products
Ambient Products faced a challenging first half, with performance impacted by softer consumer demand,
lower export activity as well as disruptions and cost under-recoveries associated with the integration of
Dickon Hall Foods into Montagu Foods. Despite these headwinds, the category continued to make
progress against several of the priorities outlined at the Group's Capital Markets Day.
Wet Condiments remained focused on strengthening customer relationships, expanding participation
across Retail, Food Service and Industrial channels and improving manufacturing efficiency. Revenue
declined in line with the anticipated reduction in Industrial and Contract Manufacturing volumes following
the loss of a contract within Dickon Hall Foods.
Select Products delivered an improved performance relative to the prior period, supported by a recovery
in the Snacking sub-category and continued growth in the Food Service channel. Ongoing commercial
and operational interventions implemented during 2025 continued to gain traction, while focused
customer execution and product mix management supported improved profitability.
Dry Condiments remained focused on growing own-branded participation and expanding export market
opportunities. Continued double-digit revenue growth of the Cape Herb & Spice brand was offset by lower
private-label exports, particularly into Japan and Australia, as well as the impact of a stronger Rand on
export competitiveness and profitability.
Baking delivered an improved performance during the period, underpinned by continued growth in the
Food Service channel and resilient customer demand across its core product offering.
Perishable Products
Perishable Products delivered a strong performance despite the challenging consumer environment, with
revenue, gross profit margin, EBIT and EBITDA all improving relative to the prior period.
The Dairy sub-category was the principal driver of growth during the period, benefiting from improved
product mix, manufacturing efficiencies and continued investment in higher-growth, higher-margin
categories including hard cheese, soft cheese and yoghurt. The sub-category performance was bolstered
by its continued focus on asset utilisation, pricing discipline and procurement optimisation to support
sustainable margin expansion.
Value-added Meats navigated chicken capacity constraints and beef capacity underutilisation to deliver a
resilient H1 2026 performance. The category remains structurally under pressure from these challenges,
necessitating a detailed manufacturing capacity review which is due to be completed in H2 2026.
Together, these performances demonstrate the benefits of the Group's category-led operating model and
continued focus on disciplined execution, channel expansion and higher-quality earnings growth.
PROGRESS ON KEY STRATEGIC MATTERS
Libstar’s strategic objective is to deliver sustainable, profitable growth and stakeholder value.
The Group entered 2026 with a clear focus on executing the priorities communicated at its Capital
Markets Day in March 2026. The first half was impacted by a tougher-than-anticipated consumer
environment, which weighed on earnings against the prior period. Despite this, Libstar continued to
advance the operational projects, portfolio simplification initiatives and channel growth priorities intended
to support second-half recovery and improve the quality of earnings, cash generation and returns over the
medium term.
Delivering on major operational projects
Wet Condiments mega sauce factory
The integration of Dickon Hall Foods into Montagu Foods was completed by August 2026 within Board-
approved budget. Although the project was completed after the reporting date, it remained a key
execution priority during the first half and was progressed in line with the plans communicated at the
Capital Markets Day.
The project simplifies the Wet Condiments manufacturing footprint, consolidates production into a more
efficient operating structure and is expected to improve labour productivity, occupancy costs,
manufacturing efficiencies and service capability. The benefits are expected to support second-half
recovery and become increasingly visible as integration activities are completed and operational
efficiencies are embedded.
Dry Condiments facility consolidation
The Cape Herb & Spice consolidation project remains on track to deliver meaningful cost savings when
fully implemented in H1 2027. The initiative involves the integration of manufacturing, warehousing and
support activities, currently spread across multiple facilities, into a single consolidated site. This
consolidation is expected to reduce operating complexity, improve inventory management and support
improved service levels and cost competitiveness across domestic and export markets.
During the reporting period, finished goods inventory was moved from third-party storage into the
consolidated facility, reducing duplicated cost. Construction planning for the move of manufacturing
equipment is underway.
Portfolio simplification
The Group entered into a sale agreement in relation to its Phesantekraal property in the Western Cape,
which did not form part of the sale of the Fresh Mushroom operations effective 1 December 2025.
Transfer occurred after the reporting date, on 31 July 2026, raising proceeds of R65 million, which further
strengthened the Group balance sheet.
Libstar continued to progress discussions regarding the intended disposal of Contactim, its remaining
non-food business.
Expanding higher-growth channels
Food Service continued to demonstrate resilience during H1 2026 and remains a priority growth channel
for the Group, supported by expanded product offerings, strengthened customer relationships and
participation across both Ambient and Perishable categories.
The Group continued to develop export opportunities, particularly in own-branded product ranges which
have shown double-digit growth over successive reporting periods. Export growth remains an important
lever for improved capacity utilisation, although first-half performance was affected by weaker demand in
selected markets and currency headwinds. During the reporting period, Libstar liquidated its remaining
bulk tea inventories, marking the exit from a lower margin, working-capital intensive sub-category of Dry
Condiments.
Progress also continued in building route-to-market capability within informal trade. The Group is
leveraging selected owned brands to expand participation in a structurally attractive channel where
Libstar remains under-indexed relative to its manufacturing and brand capability.
One Libstar, sustainability and returns discipline
The One Libstar operating model continued to be embedded through greater alignment of systems,
processes, leadership structures and people practices. The EDGE Leadership Programme remains an
important platform for leadership development and execution discipline across the Group, with the first
cohort successfully completing the 12-month programme in July 2026.
Operational sustainability initiatives remained focused on projects that improve resilience and cost
competitiveness, including water reuse, energy efficiency and procurement consolidation. Capital
allocation remains ROIC-led, with investment prioritised towards projects that support earnings quality,
cash generation and sustainable shareholder returns.
OUTLOOK
H1 2026 reflects a period in which management and the Board continued to build on the benefits of the
portfolio simplification initiatives executed over recent years, while accelerating the implementation of
major capital projects and applying disciplined focus to improving historically underperforming sub-
categories. While the disruptive effects of the Dickon Hall Foods integration into Montagu Foods and
intensified export market pressures weighed on earnings during the period, the strategic rationale,
expected benefits and return profiles of these projects remain firmly intact. Significant progress was made
against the priorities communicated at the Group's Capital Markets Day, including the successful
completion of the Montagu Foods integration and continued execution of the Cape Herb & Spice
consolidation project.
Post-period trading has improved relative to the growth achieved in the first half, and while supported by
additional trading days, provides encouraging evidence of improving trading momentum. While this is
encouraging, the Group remains cautious regarding the near-term consumer outlook, given continued
pressure on household disposable income, subdued category inflation, intense competitive activity and
ongoing cost pressures, particularly across packaging and distribution.
Libstar remains focused on growing market share through value-led offerings, private label growth,
innovation and disciplined pricing, while driving operational efficiencies, strong cash generation and
disciplined capital allocation.
The Group’s diversified portfolio, established customer relationships and manufacturing capabilities
position it to navigate the prevailing environment and pursue sustainable value creation.
FY2026 Interim Results Presentation
Libstar will host an investor and analyst presentation via webcast at 10:00 SAST on Tuesday, 8 September
2026.
The presentation slides will be available on Libstar's website at www.libstar.co.za and interested parties
may register for the webcast using the following link: https://www.corpcam.com/Libstar08092026.
CHANGES TO THE BOARD
CIS Company Secretaries Proprietary Limited was appointed as Company Secretary with effect from 6
November 2025 to 31 March 2026.
Zinhle Zondi has been appointed as Company Secretary with effect from 1 April 2026.
Cornél Lodewyks, Executive Director of Libstar and Managing Executive of Lancewood, has been
appointed as Group Chief Operating Officer ("COO") with effect from 1 August 2026. Cornél will continue
to serve on the Board as an Executive Director and will transition from his role as Managing Executive of
Lancewood to assume his Group-wide COO responsibilities.
DIVIDEND
In line with the Group’s policy, of one dividend per annum declared at year-end, no interim dividend has
been declared.
Responsibility statement
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 Results summary 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/2026/jse/isse/lbre/LBRH1_2026.pdf
- On Libstar's website:
https://www.libstar.co.za/wp-content/uploads/2026/09/SENS-Booklet-2026.pdf
A copy of the full announcement is available for inspection and may also be requested at Libstar’s registered
office and offices of our sponsor, at no charge, during office hours.
By order of the Board
JP Landman CB de Villiers
CHAIRMAN CEO
8 September 2026
Sponsor
The Standard Bank of South Africa Limited
Date: 08/09/2026 08:00:00
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