Libstar Holdings Limited (JSE: LBR) today reported a significantly improved set of results for the year ended 31 December 2025, marking the Group’s strongest performance since the launch of its strategic reset in 2023.
Despite a muted consumer and operating environment, Libstar delivered broad‑based growth across key financial metrics, supported by disciplined execution, a sharper operating model and continued progress on its simplification strategy.
Financial highlights reflect strong momentum:
— Revenue growth: 8.2% (2024: 3.1%)
— Gross profit margin: 22.0% (2024: 21.6%)
— Normalised EBITDA: R1 071 million (2024: R1 005 million)
— Normalised HEPS: up 21.7% to 70.6 cents (2024: 58.0 cents)
— Cash dividend: increased to 28 cents per share (gross) (2024: 15 cents)
Net debt to EBITDA reduced to 0.9 times, down from 1.5 times in the prior year, reflecting a substantially strengthened balance sheet. Adjusted ROIC improved to 10.9%, from 8.6%, demonstrating clear progress in earnings quality and capital efficiency.
In light of this performance and improved financial resilience, the Board declared a cash dividend of 28 cents per share, an 86% increase year‑on‑year.
A clear turning point
Libstar CEO Charl de Villiers said the 2025 financial year represented a decisive turning point for the Group.
“Since 2023, we have been deliberate in reshaping Libstar into a sharper, more focused business. These results clearly demonstrate that the strategy is delivering,” said de Villiers.
“We have strengthened our operational foundation, improved financial resilience, and built real momentum across the portfolio.”
He added that the transition to a simplified operating structure had been critical to the improved performance. “We are now a simpler, two super‑category organisation, with clearer strategic alignment and stronger execution. The actions we have taken, from portfolio simplification to cost optimisation, are delivering as intended.”
Strong category performance underpins results
Libstar continued to gain share in key categories, lift gross margins through disciplined execution, and maintain a steady pace of innovation across channels. Strong cash generation was further supported by working capital improvements and disciplined capital allocation.
Ambient Products delivered revenue growth of 7.4%, with gross margins increasing to 25.9% and Normalised EBITDA up 3.1%.
Wet Condiments benefited from higher capacity utilisation and continued innovation.
Dry Condiments delivered margin gains supported by a favourable mix shift. Select Products (previously Meal Ingredients, Snacks and Spreads) achieved growth across retail principal brands, food‑service packaging and spreads. Baking recorded revenue growth supported by QSR demand and retail innovation, although operational inefficiencies moderated profitability.
Perishable Products delivered another standout performance, with revenue increasing by 9.2% and margins improving to 17.5%. Dairy benefited from more balanced supply‑and‑demand dynamics, market‑share gains and disciplined cost management. Value‑Added Meats achieved strong volume growth in retail and QSR chicken products. Convenience Meals continued to grow through private‑label and own‑brand innovation.
Confidence in the future
Following the withdrawal of the cautionary announcement, Libstar confirmed that no sale of the Group will proceed. “The interest we received was a clear signal of Libstar’s underlying strength. However, our confidence in the business, our people and our trajectory is unwavering.”
Reflecting the Group’s strong cash generation, improved balance sheet and confidence in its intrinsic value, Libstar has relaxed its dividend policy and introduced a share repurchase programme. These capital allocation actions are intended to enhance long‑term stakeholder value while maintaining the flexibility to invest in growth initiatives from a strengthened financial base.
“We remain firmly focused on executing our strategy and creating long‑term value. The business has been stabilised and simplified, and we are now building on that foundation, driving efficiency while continuing to invest in initiatives that enhance competitiveness and support sustainable margin resilience,” de Villiers concluded.