Shares in Denny owner Libstar jump on maiden dividend
Libstar, the consumer goods group that listed on the JSE in May 2018, announced a maiden cash dividend of 22c a share on Wednesday as profits after tax in 2018 edged 1% higher to R236m. The company’s shares were up as much as 9.7% at R7.79 in mid-morning trade. The group, whose brands include Lancewood cheeses and Denny mushrooms, said the trading environment in the year ended December was “the toughest Libstar has experienced since its inception 14 years ago ... The retail sector is experiencing structural pressures brought about by economic uncertainty and lower levels of consumer spending”. The group “performed satisfactorily”, with volume growth accelerating slightly in the second half of the year. Revenues increased 12.5% to R9.9bn, thanks to acquisitions and the launch of Lancewood-branded dairy products. Libstar said the local economy is expected to remain “sluggish” for the foreseeable future, “with a particularly difficult first half expected”. Food inflation is likely to b...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.