JSE listing for food superstar Libstar
The producer has upped revenue and profit in a sector in which growth has been difficult to achieve
Food producer Libstar is heading for a JSE main board listing and will be bringing with it a record of growth and a swathe of brands. The company appears set to list in the next six to eight weeks and has yet to publish a prelisting statement. But the figures it has already provided are likely to create a high level of investor interest. In the three years to 2017, in a food sector where growth was hard to come by, Libstar upped its revenue 86% from R4.75bn to R8.83bn and, even more impressively, took its gross profit from R1bn to R2bn. At the earnings before interest, tax, depreciation and amortisation (Ebitda) level, profit grew by 43%, from R657.9m in 2015 to R940.3m in 2017. "Libstar ranks as the fifth-biggest food producer in SA based on its Ebitda," says First Avenue Investment Management’s Nadim Mohamed. Libstar’s exceptional growth has been driven by a business model put in place at the time of its founding in 2005 by current CEO Andries van Rensburg and current CFO Robin Sm...
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