JSE’s food index slumps as producers suffer from indigestion
Shares in Denny Mushrooms owner Libstar plunged 24% after a trading update, while Tiger Brands, which was under pressure on Thursday, lost a further 7.6%
The JSE’s food producers index suffered a 3% slump on Friday morning following trading updates from three of its constituents. Recently listed food group Libstar’s share price plunged 24% to R8.52 on Friday morning after it indicated its maiden results as a public company would be far lower than indicated in its prospectus. Libstar said it expected to report on September 4 that its headline earnings per share (HEPS) from continuing operations for the six months to end-June would be about half the 25c reported in the comparative period. Its discontinued operations would contribute a headline loss per share of up to 1.2c. Libstar said its profitability suffered from "a national oversupply of fresh mushrooms and the lower-margin Sonnendal Dairies business acquisition, which has enhanced the group’s yoghurt manufacturing capabilities". Larger rival Tiger Brands continued its slide on Friday morning, losing a further 7.6% to R275.72 following Thursday’s 9% drop after it warned its 2018 f...
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.