Shares in Denny owner Libstar jump on maiden dividend
By Nick Hedley - Mar 13th, 13:49
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 be between 0% and 2%, meaning growth will depend on volumes.
“The group aims, with product innovation, to grow its market share and the overall size of the market in terms of new products and new utilisation of products.”
Libstar aims to increase its penetration of independent retailers, wholesalers and exports. It will also invest further in plants and equipment, “and on specific earnings-enhancing capital projects” to boost output.
Its projects include the construction of a new tea plant for the local and export markets; a new Pringles plant to manufacture the snack for a third party; the expansion of its prepared-meal operations “to further tap into the growing convenience market”; and a new soft-cheese, value-adding and packing facility.
Independent analyst Anthony Clark said Libstar’s results were not as weak as expected, saying that on a 12- to 18-month outlook, Libstar is now “my cheapest buy in the sector”. Business Live
Checkers brings world-class retail to Constantia with new flagship store
27/11/2019 - 13:01
Checkers has opened the doors to its state-of-the-art 2 330 m² flagship supermarket at the Constantia Emporium as the retailer continues to take innovation to new heights.
Woolworths carves out market share in SA
27/11/2019 - 10:11
In Australia, David Jones's sales declined 2.1%, with the company saying a store refurbishment contributed to the decline.
Push and pull strategies work together to keep consumers coming back for more
26/11/2019 - 10:20
The retail sector is under increasing pressure as consumers have shrinking disposable income in a strained economy. Maintaining share of wallet is critical. Relying solely on a push route to market strategy from manufacturers into retailers is not enough to get consumers buying products. A pull strategy needs to coexist with the push to drive brand consumption. Integrating these strategies requires intelligent and insightful decision-making. This, in turn, requires data generated through smart technology which provides line of sight across the value chain from manufacturer to distribution, retailer to the consumer.
Exclusive leases must fall: Commission cracks whip on Shoprite, Pick n pay, Spar, Woolies
26/11/2019 - 09:57
The Competition Commission Inquiry into Grocery Retail, published on Monday, called for an end to the exclusive leases negotiated by national retail chains in all shopping malls across the country in a bid to open up access to markets for smaller players.
Today’s customers are loyal to speed and convenience, not brands
25/11/2019 - 11:15
Consumer expectations are rapidly shifting as technologies such as mobile, geolocation, social media and increasingly, Internet of Things devices and wearables, connect people to a world of easily accessible information and convenient services. With the ability to browse, compare and order with a few swipes and taps, consumers are becoming trained to value convenience and service above nearly anything else.