Libstar Holdings (LBR) Trading update summary

Portfolio simplification and disposals

• Disposed of fresh mushroom operations effective 1 December (or 1 December 2025), including two properties but excluding the Phesantekraal site and the Denny brand, which is retained and licensed to the acquirer for fresh mushrooms; value-added Denny products retained in Wet Condiments.

• Phesantekraal (Western Cape) site remains subject to closure and will be divested in due course.

• Board evaluating non-binding expressions of interest for the Contactim business and offers for the remaining Household and Personal Care business as part of exiting the HPC category and non-food categories.

• Expected pre-tax loss on mushroom sale between ZAR 45–55 million (R45–R55 million), impacting EPS but excluded from Headline EPS; tax benefits and future property disposal may offset some losses.

• Disposal aligns with strategy to focus on priority categories with sustainable growth potential.

Financial impact and trading performance

• Year-to-date revenue up 6.7%, with 3.1% from volume and 3.6% from price/mix.

• Retail channel sales value growth at 4.4% YTD, outpacing market growth of 1.6%; food service channel grew 11.2%.

• Extraordinary items: 9% volume boost from raw milk sales, offset by declines from springwater closure and vinegar capacity constraints.

• Gross margins ahead of prior year; margin improvements in both ambient and perishable categories, excluding raw milk sales impact.

• Net debt to EBITDA ratio reduced from 1.3x, supporting year-end gearing and capex guidance.

Category and channel performance

• Ambient products revenue up 5.6% (4.5% volume), driven by wet condiments and principal brands; General Mills distribution added ZAR 30 million turnover.

• Perishable products revenue up 8.1%, with core dairy volumes up 4.7% and value-added meats and chicken driving growth; Lancewood brand continues market leadership.

• Baking subcategory achieved double-digit top-line growth; margin pressure in par-baked frozen category addressed via CapEx.

• Snacks subcategory stabilized with stronger outlook for next year.

• Tariff impact mitigated to below ZAR 10 million, with exemptions for unblended spices.