South Africa-based consumer goods producer Libstar Holdings Limited has posted a 27.8-percent decline in its headline earnings for the first half of its fiscal year, which ended on June 30.
Figures contained in the group’s half-year statement revealed that its headline earnings for the period 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.
Earnings during the period were impacted by unfavourable foreign currency movements in addition to increased input costs and operating expenses in the period.
Libstar Holdings 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.
The van Rensburg-led producer provides a range of products in seven categories, including perishables, ambient groceries, baking, snacks and confectionery, niche beverages, home and personal care and food packaging.
During the half-year period, which ended on June 30, its revenue rose by 8.7 percent from R4.7 billion ($332.6 million) in the first half of 2020 to R5.1 billion ($360.9 million).
The single-digit growth in the group’s revenue can be attributed to a 10.5-percent increase in the sales of packaged food items, driven by strong sales in groceries and perishables.
However, this growth was phased out by rising input costs and operating expenses.
Van Rensburg said their decentralized model and culture of entrepreneurship and innovation have enabled the group to respond with agility to changing consumer habits.
He noted that the group’s financial performance in the period was impacted by rising input costs, with South African food inflation averaging six percent throughout the six-month period.
As of press time, 11:45 AM (UTC), Sept. 9, shares in Libstar on the Johannesburg Stock Exchange were trading at R6.13 ($0.43), 33-basis points lower than its opening price on the local bourse this morning.
At this price valuation, the group’s market capitalization is valued at R3.7 billion ($258.2 million), while the market value of van Rensburg’s stake is valued at R37 million ($2.6 million).
