Libstar Holdings (LBR) H1 2025 earnings summary

Executive summary

• Achieved 6.7% revenue growth and 4.1% volume growth year-over-year for H1 2025, driven by operational momentum, portfolio simplification, and sustainability initiatives.

• Gross profit margin improved to 21.6% from 20.7% year-over-year, with normalised EBITDA up 7.5% and normalised HEPS up 15.4%.

• Strategic focus on transformation, simplification, operational efficiency, and sustainable growth, with integration of business units and shared service structures.

• Award-winning product innovation and 21 industry awards highlight ongoing commitment to quality and market share gains.

• Sustainability initiatives expanded, including green energy and water reuse projects, embedding resilience and cost efficiency.

Financial highlights

• Group revenue increased by 6.7% year-over-year to R5.96bn, with 4.1% volume growth and 2.6% from price/mix.

• Gross profit margin expanded to 21.6%, up 0.9pp from the prior year.

• Normalised EBITDA rose 7.5% to R465m; normalised HEPS up 15.4% and basic HEPS up 23.7%.

• Gearing ratio improved to 1.3x (from 1.6x); cash conversion reached 110%.

• Capital expenditure increased by 4.1% to R83.7m, focused on capacity enhancements and maintenance.

Outlook and guidance

• Focus on operational efficiencies, innovation, and export expansion amid persistent consumer and macroeconomic pressures.

• Expect stronger margin performance in H2, especially in dairy, as inventories normalize and milk pricing stabilizes.

• Full-year margin for perishable products expected between 6.5% and 7%, slightly below target but improved from H1.

• Ongoing portfolio simplification to be completed by year-end, transforming into a streamlined two-category business.

• Value unlock process underway with non-binding expressions of interest for potential acquisition.