Libstar Holdings has posted an increase of R218.2 million ($14.6 million) in its market capitalization in 15 days, despite a 27.8-percent reduction in headline earnings in the first half of 2021.
Libstar is a South Africa-based company co-founded by Andries van Rensburg and Robin Smith in 2005. It focuses on acquiring and growing operations in the consumer packaged goods industry.
At the end of the first-half-year period of its current fiscal year, the South Africa-based holding revealed that its headline earnings fell to R0.122 ($0.0084) per share in the six months ending June 30 from R0.169 ($0.012) per share in the same period last year.
This translates to a 27.8-percent decline in its headline earnings despite a 10.5-percent increase in the sales of packaged food items, driven by strong sales in groceries and perishables.
In reaction, Libstar shares pared by 3.3 percent on Sept. 8 following the publication of the half-year financial results, as investors took flight to safety in reaction to the weak financial performance and reductions in earnings.
On Sept. 9, shares in the company printed a closing price of R6.08 ($0.408). Since then the stock price has increased by R0.32 ($0.0215) to R6.40 ($0.43), returning a gain of 5.3-percent to shareholders in 14 days.
Research conducted by Billionaires.Africa revealed that the market capitalization of the consumer packaged goods company has increased from R4.15 billion ($278.3 million) on Sep. 9 to R4.36 billion ($292.90 million) on Sept. 23.
This represents an increase of R218.2 million ($14.6 million) in its market capitalization.
With the recent increase in the stock price and shareholders’ wealth, van Rensburg and Smith have seen the market value of their stakes increase by $129,720 and $84,780, respectively, between Sept. 9 and Sept. 23.
According to figures contained in its most recent annual report, Rensburg and Smith hold a beneficial ownership interest of 0.89 percent and 0.58 percent, respectively, in the company.