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Trading Statement for the Six Months 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”)
TRADING STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2026
INTRODUCTION
Shareholders are referred to the voluntary pre-close trading update for the 21-week period
ended 31 May 2026, published on 18 June 2026, in which Libstar advised that while several
of the Group’s core categories had delivered resilient performances, Group earnings for the
period were adversely affected by concentrated underperformance in the Dickon Hall Foods
division and the Dry Condiments sub-category (“Pre-close Trading Update”). The Group
continued to execute the strategic priorities communicated at its March 2026 Capital Markets
Day, including major operational integration and facility consolidation projects, while
maintaining disciplined capital allocation and balance sheet management.
TRADING STATEMENT
Further to the pre-close trading update and in terms of paragraph 6.26(a) of the Listings
Requirements of the JSE Limited, companies are required to publish a trading statement as
soon as there is a reasonable degree of certainty that the financial results for the next reporting
period will differ by at least 20% from the financial results for the previous corresponding
period. The Group expects a decline in Total EPS and Total HEPS, which should be
considered in the context of non-recurring, non-trading and non-cash items recognised during
the period, as well as the Group’s continued focus on underlying operating performance, cash
generation, disciplined capital allocation and balance sheet strength.
Accordingly, shareholders are advised that, for the six months ended 30 June 2026 (H1 2026),
the Group expects a decline in Total EPS and Total HEPS, while Normalised HEPS from
continuing operations is expected to remain within a narrower range relative to the prior
corresponding period:
- Total Earnings Per Share (EPS) to be between 8.0 and 9.6 cents per share, compared
to the prior period EPS of 15.2 cents per share (representing a decrease of between
36.8% and 47.4%);
- Total Headline Earnings Per Share (HEPS) to be between 12.1 and 13.7 cents per
share, compared to the prior period HEPS of 16.7 cents per share (representing a
decrease of between 18.0% and 27.5%);
- Normalised HEPS from continuing operations to be between 23.0 and 25.4 cents per
share, compared to the prior year Normalised HEPS of 24.8 cents per share
(representing a movement of between a 2.4% increase and a 7.3% decrease); and
- Normalised EBITDA (excluding unrealised foreign currency movements and other non-
recurring, non-trading, and non-cash items) of between R446.1 million and R460.3
million. This represents a decrease of between 2.8% and 5.8% compared to the prior
period Normalised EBITDA of R473.8 million.
o Four of the Group’s seven food sub-categories, namely Dairy, Value-added
Meats, Select Products and Baking are expected to report growth in
Normalised EBITDA, with the Convenience Meals sub-category marginally
lower and underperformance concentrated in Dickon Hall Foods (Wet
Condiments sub-category) and Dry Condiments.
Non-Recurring, Non-Trading and Non-Cash Items
As noted above, the expected movement in Total EPS and Total HEPS was affected by a
number of items that are non-recurring, non-trading or non-cash in nature. These items are
disclosed separately to assist shareholders in assessing the Group’s underlying operating
performance.
- Impairment charges of R16.3 million (H1 2025: R10.4 million) and a loss of R8.0 million
(H1 2025: R1.4 million gain) on the scrapping of property, plant and equipment in
Dickon Hall Foods were recognised during the period. These items are included in
Total EPS, but excluded from Total HEPS and Normalised HEPS; and
- Unrealised foreign exchange losses of R10.3 million (H1 2025: R5.3 million gains) and
retrenchment costs of R12.3 million (H1 2025: R3.7 million) were recognised during
the period, which are included in Total EPS and Total HEPS, but excluded from
Normalised HEPS.
CAPITAL ALLOCATION AND BALANCE SHEET DISCIPLINE
Libstar has continued to apply disciplined capital allocation while returning capital to
shareholders. Following the 2025 financial year, the Board approved a cash dividend of 28
cents per ordinary share, representing an 86.7% increase on the prior year. During H1 2026,
the Group further returned capital to shareholders by repurchasing 13.8 million shares (or
2.3% shares in issue) for a consideration of R62.2 million at an average price of R4.54 per
share. The diluted weighted average number of shares in issue during the reporting period
was 591,419,295 (H1 2025: 595,812,263). This capital return was undertaken while
maintaining balance sheet discipline, with the Group’s net interest-bearing debt to
Normalised EBITDA and twelve-month moving Adjusted ROIC expected to improve relative
to the prior corresponding period.
STRATEGIC CONTEXT
H1 2026 reflects a period in which Management and the Board continued to build on the
benefits of the Group’s 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 intact and are expected, together with operational projects
and channel growth initiatives, to support second-half recovery and improve the quality of
earnings, cash generation and returns over the medium term.
The financial information in this announcement has not been reviewed or reported on by
Libstar’s external auditors.
Libstar’s interim results for the period ended 30 June 2026 will be published on 8 September
2026. The presentation slides will be available on the Company's website at www.libstar.co.za
and interested parties may register for the webcast using the following link:
https://www.corpcam.com/Libstar08092026.
20 August 2026
Sponsor
The Standard Bank of South Africa Limited
Date: 20/08/2026 11:00:00
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