Libstar today reported its interim results for the six months ended 30 June 2026, highlighting continued progress in the Group’s simplification strategy, resilient performances across key categories and the successful completion of a major manufacturing consolidation project that positions Libstar for future growth.
A key milestone for the period was the post-period completion of the integration of Dickon Hall Foods into Montagu Foods, establishing Libstar’s new Mega Sauce Factory. The project, completed within the Board-approved budget, consolidates the Group’s Wet Condiments manufacturing footprint into a larger, more efficient and scalable operating platform.
The achievement comes against a challenging backdrop. Consumers remained under pressure during the first half, while low food inflation constrained category value growth. Manufacturers also continued to absorb higher packaging, logistics and distribution costs, while a stronger Rand and weaker offshore demand weighed on export competitiveness.
Despite these headwinds, Libstar continued to execute on its strategic priorities, investing in growth opportunities, simplifying its operating platform and maintaining a strong balance sheet.
- Revenue increased 0.7% to R5.8 billion, supported by underlying volume growth of 1.1% once extraordinary items were excluded.
- Normalised EBITDA declined 4.3% to R453.2 million, while Normalised HEPS decreased 2.4% to 24.2 cents.
- Adjusted ROIC improved to 10.3% and gearing strengthened to 1.2 times Normalised EBITDA.
The first half reinforced the importance of focusing on what we can control,” said Group CEO Charl de Villiers. “We continued to simplify the business, strengthen our financial position and invest behind the categories and capabilities that will drive future growth, whilst also returning capital to shareholders by way of increased dividends and share repurchases. The completion of the Dickon Hall Foods integration and establishment of the Mega Sauce Factory mark an important step in building a more focused, efficient and growth-oriented Libstar.
Delivering resilient performance in a challenging environment
Perishable Products delivered a strong performance, with revenue increasing by 2.5% and Normalised EBITDA increasing by 13.5%, supported by continued growth in Dairy and Value-added Meats. Ambient Products was affected by the Dickon Hall Foods integration, lower private-label export volumes and currency related pressure on export competitiveness, although Select Products, Baking and Cape Herb & Spice own-brand products delivered encouraging performances.
Food Service continued to be a standout growth channel, increasing 11.2% during the period, while Retail & Wholesale revenue grew 3.2%. These gains were partly offset by weaker export demand and lower Industrial & Contract Manufacturing volumes following the loss of a contract within Dickon Hall Foods.
Mega Sauce Factory marks a milestone in Libstar’s transformation
The new Mega Sauce Factory represents a significant milestone in Libstar’s operational simplification programme. By bringing Wet Condiments production together into a single manufacturing platform, the Group expects to enhance productivity, improve customer service, reduce operating complexity and unlock further manufacturing efficiencies.
The expanded capability is also expected to support innovation and provide a stronger platform for future growth across existing and adjacent product categories. Management’s immediate focus is now on optimising output, service levels and profitability to progressively unlock the benefits of the new facility.
“The Mega Sauce Factory is more than a consolidation project. It gives us greater scale, a leaner operating structure and stronger innovation capability. It positions us to improve service levels, strengthen profitability and support sustainable growth over the medium term,” said De Villiers
Strategic execution continues across the Group
The Cape Herb & Spice consolidation project remains on track for completion in the first half of 2027, while the Phesantekraal property disposal (Denny Mushrooms operations) was completed after the reporting period, generating proceeds of R65 million. Libstar also delivered R10 million in annualised procurement savings and continued to advance its renewable energy and water recovery initiatives.
Building momentum into the second half
Looking ahead, consumer pressure is expected to persist, with low category inflation and ongoing cost pressures continuing across the sector. With the Mega Sauce Factory integration completed and other key simplification initiatives progressing according to plan, Libstar remains focused on disciplined execution and strengthening the quality and returns profile of the business.
“We are encouraged by the progress being made across the business and the momentum building behind our key initiatives,” said De Villiers. “With our clear strategy and a stronger operating platform, we remain focused on delivering improved returns and sustainable growth.”
