Libstar Holdings (LBR) Trading update summary

Market overview and trading environment

• Revenue growth in the defined market basket was 0.8% in Q1, accelerating to 4.1% in April, then slowing to 1.7% in May, with overall 12-month value growth at 4.7%.

• Low single-digit value growth in the retail and wholesale channel since early 2025, with consumers still under pressure despite easing inflation and lower interest rates.

• Supply chain volatility persisted in early 2025, with import/export delays due to weather, equipment issues at Cape Town terminal, and longer import lead times.

• The Israel-Iran conflict has not affected import/export logistics, with main export markets in Europe and North America remaining unaffected.

• Retail, wholesale, food service, and export channel volumes all rose, showing positive trading momentum compared to 2024.

Revenue and volume performance

• Group revenue increased by 10.1%, driven by 5.2% volume growth and 4.9% price/mix contribution.

• Ambient products revenue rose 11.5% with 5.4% volume growth, led by wet condiments and private label expansion, and continued international expansion for dry condiments.

• Perishables category revenue grew 8.9%, with value-added meat and dairy subcategories driving volume growth.

• Value-added meats saw double-digit revenue growth in coated chicken, while beef volumes declined due to supply chain diversification and disease outbreaks, but contingency measures maintained supply.

• Category and channel revenue growth outpaced the market, with volume increases in both Ambient and Perishable Products.

Category and brand highlights

• Wet condiments and baking aids performed strongly, with new private label customers and improved distribution.

• Cape Herb & Spice brand achieved 52% year-on-year growth, supported by new listings in Switzerland, UK, Ireland, and Croatia.

• Food service channel benefited from a new structure, supporting double-digit growth in principal branded products and boosting meal ingredients and other ambient sub-categories.

• Dairy subcategory saw improved working capital, slower national milk production growth, and increased demand in core categories.

• Lancewood brand market share is growing ahead of all dairy categories, including soft cheese, hard cheese, and yogurt.