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General information

Sector: Consumer Goods

The company is not available at Interactive Brokers

Libstar Holdings Limited (JSE:LBR) is a producer and marketer of quality products for the Consumer Packaged Goods (CPG) market in South Africa and the rest of the world. 

The group was founded in 2005 to acquire and grow operations in the CPG industry. Over the years, the group's growing, diverse family of companies has come to offer an assorted range of brands and products that can be classified into various brand solutions which together generate more than 80% of group revenue. These include:

Dealer Own Brands and Private Label Brands

Dealer Own Brand (DOB) products are differentiated in terms of quality, packaging, specifications, appearances and product benefits. DOBs are often positioned as the best offering to the customer. Private label products are a more cost-effective alternative to branded products. Clients include Shoprite, Woolworths, Massmart, Clicks, Spar, Spinneys Food, Pick n Pay, Fruit & Veg City, OK, Boxer, USave, Trader Joe's, Checkers, Loblaw, Crystal Valley, Simple Truth and The Kitchen.

Libstar Brands

Many Libstar brands, including Lancewood, Denny, Goldcrest and Cook ’n Bake, are well-recognised brands in South Africa. These are produced by the group and marketed and sold under labels and trademarks that are proprietary to the group or produced, supplied and marketed by it under licence agreements with a brand owner. Other Libstar brands include Cape Herb & Spice, Cani, Cecil Vinegar Works, Natural, Preem, Khoisan Gourmet, Cartwrights and Easyclean.

Principal Brands

The group represents several well-known international brands in South Africa. It sources, imports, markets and distributes principal brands under a purchase or distributorship arrangement between the group and the owner of the brand. Principal Brands allow Libstar to offer premium international brands to the South African market, as many of these are imported, marketed and distributed from European, Asian and American food manufacturers. Brands in this category include Kiri, Lurpak, McIlhenny Tabasco, Maille, Kikkoman, The Laughing Cow, Bel, San Benedito, Bonne Maman, Granoro, Act II, Safari, Villani, DiNapoli, Ong's, Hipp Organic, NCP Yeast, Zanetti, Castello, and Robertsons.

 

Through its world-class manufacturing capabilities, the Libstar family of companies also offers services to some of the most recognised and revered household-name brands and leading companies in the food-service industry in South Africa via:

Outsourced Manufactured Solutions

Outsourced Manufactured Solutions is a “business-to-business” service. The group manufactures a range of quality products for other businesses which, in turn, on-sell those products to retailers and consumers. Clients of this division include Unilever, Nestle, Tiger Brands (JSE:TBS), County Fair, Pioneer Foods, Mrs H.S. Balls Chutney, Maggi, All Gold, Koo, Crosse & Blackwell, Pringles, Kellogg's and Freddy Hirsch.

Food Service Solutions

Libstar focuses on product innovation through the world-class manufacturing of custom-made products for leading companies in the food service industry. These include quick service restaurant chains and South African family restaurants. Clients of this division include, McDonalds, KFC, Nandos, Domino's and Spur Steak Ranches (owned by Spur Corp JSE:SUR)



  • Bad financial results growth rate -16.5% (average between last period year over year growth for revenue and EBITDA), there is slowdown compared to average historical growth rates (-0.0%)
  • Dividend yield for the last twelve months 0.0%
  • Free cash flow yield -4.3% (LTM)
  • Share price is 37.5% higher than minimum and 43.6% lower than maximum for the last 3 years
  • The company is undervalued by EV / LTM EBITDA multiple compared to target level (5.2x vs
    )
  • Fundamental value created in LTM (estimate)

Key Financials

Share price, ZAR:  (+0.3%)4.00
Share price, USD: 0.2097
Common stocks: 681 704 261

Dividend Yield:  0.0%
FCF Yield LTM: -4.3%
EV / LTM EBITDA: 5.2x
Last revenue growth (y/y):  -6.0%
Last growth of EBITDA (y/y):  -27.1%
Historical revenue growth:  +3.7%
Historical growth of EBITDA:  -5.6%
Target EV / EBITDA (hist percentile):
Fundamental value created in LTM:
EV / LTM EBITDA mutiple calculation
Market Cap ($m): 143
Net Debt ($m): 119
EV (Enterprise Value): 262
EBITDA LTM ($m): 51
EV / LTM EBITDA: 5.2x
Price to Book: 0.53x

Revenue and EBITDA

Semi-Annual values ($m)

Change (y/y)

Cash Flow

FCF ($m)

Net Debt / Cash and Equivalents ($m)

Share price and dividends (Download history)

Share price

Payment ZAR per share

Multiple and potential

EV / EBITDA

Potential dynamics

Reuters Headlines

South African food producers warn of higher prices as infrastructure crumbles

South African food producers, among the biggest on the continent, are spending hundreds of millions of rand mitigating prolonged rolling power blackouts, water supply issues and crumbling infrastructure.

2023-07-05

JSE:SPP JSE:TBS JSE:AVI JSE:RCL JSE:MPT JSE:LBR JSE:ARH

UPDATE 2-South Africa`s Libstar targets pet, health food deals for growth

* Libstar to hike food prices further (Recasts with targeted acquisitions)

2022-03-16

JSE:MPT JSE:LBR JSE:ISA

S.Africa`s Libstar annual profit drops on higher pandemic-related costs

South African food producer Libstar Holdings Ltd reported a 13.1% drop in full-year operating profit on Wednesday, hit by expenses of 65 million rand ($4.37 million) related to the COVID-19 pandemic.

2021-03-17

JSE:LBR

South Africa`s Libstar H2 sales rise on strong retail client demand

South African food producer Libstar Holdings Ltd saw a 3.6% rise in revenue in the second half of 2020, it said on Friday, thanks to a strong third quarter as demand from retail clients grew and delays at ports eased.

2021-01-29

JSE:SHP JSE:WHL JSE:SPG JSE:LBR JSE:ARH

UPDATE 1-Solid core businesses boost South Africa`s Libstar H1 earnings

South African food producer Libstar Holdings Ltd said on Wednesday its normalised earnings rose 12.4% in the first half, helped by a strong performance in most of its divisions.

2019-09-04

JSE:LBR

Libstar sees first-half core earnings up, sells dairy, fruit drinks unit

South African food producer Libstar Holdings Ltd expects core earnings to rise as much as 22.8% in the first half, helped by a strong performance in its dry-condiments, snacks and confectionery and baking and baking aids businesses.

2019-08-12

JSE:MPT JSE:LBR JSE:ISA

UPDATE 2-Food group Libstar shares surge, dividend eclipses earnings drop

* Firm expects added capacity to strengthen 2019 results (Recasts with shares and dividend)

2019-03-13

JSE:MPT JSE:LBR JSE:ISA

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Releases

2022-08-10
Trading statement for the six months ended 30 June 2022 and voluntary announcement regarding the acquisition
2022-06-01
Results of the Annual General Meeting of Shareholders
2022-06-01
Update regarding the disposal of a 70% interest in Libstar's Household and Personal Care Business
2022-04-22
No Change Statement, Notice of Annual General Meeting and B-BBEE Compliance Report
2022-04-07
Dealings in Securities by Associate of an Independent Non-Executive Director
2022-03-16
Results For The Year Ended 31 December 2021 And Cash Dividend Declaration
2022-03-07
Trading update and trading statement for the year ended 31 December 2021
2022-02-21
Disposal Of A 70% Interest In Libstar’s Household And Personal Care Business
2022-02-03
Change of Company Secretary
2021-09-08
Reviewed interim results for the six-month period ended 30 June 2021
2021-08-13
Trading Statement
2021-06-07
Appointment of Chairman of Audit and Risk Committee
2021-06-02
Results of the Annual General Meeting of Shareholders
2021-05-11
Acceptance of 2021 Annual Awards of Share Appreciation Rights, Performance Shares and Forfeitable Shares
2021-04-23
No Change Statement, Notice of Annual General Meeting and B-BBEE Compliance Report

SENS Announcements

2024-03-19
Dealings in securities by an associate of a director of Libstar
2024-03-18
Dealings in securities by an executive director and an associate of a director of Libstar
2024-03-15
Results for the year ended 31 December 2023 and cash dividend declaration
2024-03-05
Updated trading statement for the year ended 31 December 2023
2024-02-26
Trading Statement for the year ended 31 December 2023
2023-12-11
Dealings in securities by an Executive Director of Libstar
2023-10-04
Dealings in securities by an executive director of Libstar
2023-09-29
Dealings in securities by an executive director of Libstar
2023-09-20
Dealings in securities
2023-09-15
Dealings in securities by executive directors of Libstar
2023-09-12
Reviewed Interim Results for the six month period ended 30 June 2023
2023-08-18
Trading Statement for the six months ended 30 June 2023
2023-06-23
Changes to the board committees
2023-06-01
Results of the annual general meeting of shareholders
2023-04-21
No change statement, Notice of Annual General Meeting and B-BBEE Compliance Report
2023-03-16
Appointment of the Chief Financial Officer and Executive Director
2023-03-16
Results for the year ended 31 December 2022 and cash dividend declaration
2023-02-24
Trading Statement for the year ended 31 December 2022
2022-12-12
Appointment of interim Chief Financial Officer
2022-11-30
Mandatory Audit Firm rotation
2022-11-10
Voluntary announcement regarding the acquisition of Cape Foods
2022-11-03
Libstar investor day - 2 November 2022
2022-10-20
Notification of acquisition of a beneficial interest in securities
2022-09-13
Reviewed Interim Results for the six-month period ended 30 June 2022
2022-09-12
Retirement of CEO and appointment of New CEO and an Executive Director
2022-08-10
Trading statement for the six months ended 30 June 2022 and voluntary announcement regarding the acquisition
2022-06-01
Results of the Annual General Meeting of Shareholders
2022-06-01
Update regarding the disposal of a 70% interest in Libstar's Household and Personal Care Business