Libstar banks on new food products
The company's share price jumps 10.28% to R7.83, its highest one-day increase since listing in May last year
Consumer goods manufacturer and distributor Libstar, whose brands include Lancewood cheese and Denny Mushrooms, says it adjusted to the slowdown in consumer spending by launching hundreds of new food products. Like other consumer-focused businesses, Libstar, which also supplies chicken and beef products to McDonald’s, has had to cope with SA consumers having less money in their pockets as fuel price hikes, an interest rate increase and below-inflation wage increases weigh on disposable income.
Libstar hopes that by partnering with retailers and producing a wider range of goods under their in-house branding, it could win over cash-strapped customers looking to get more value for their money. The group, which makes a wide range of goods under private labels for leading retailers such as Shoprite, Woolworths, Spar and Pick n Pay, launched 387 new products in the year-to-end-December. ‘Quite pleased’ This helped boost revenue by 12.5% to R9.89bn. Libstar CFO Robin Smith said gi...