Libstar maintains dividend despite earnings headwinds

Libstar Holdings (JSE: LBRE) reported results for the year ended December 31, 2024, marked by both strategic progress and notable challenges. The company maintained its cash dividend at 15 cents per share despite a decrease in Normalised Headline Earnings Per Share (HEPS) of 6.5% to 53.4 cents. Revenue grew by 3.1% to R11.77 billion, although sales volumes declined by 3.2%. The Perishable Products category faced headwinds, impacting overall gross profit margins, which slightly decreased to 21.0%. Normalised EBITDA remained flat at R974 million. The group faced an impairment charge of R400 million, net of tax, related to its Finlar Fine Foods business, but cash conversion improved. Libstar is evaluating potential strategic options to unlock further value for stakeholders. Wendy Luhabe will step down as board member and Chairman of the Company after the AGM on or about 30 May 2025.