Libstar Divests Fresh Mushroom Business But Keeps Denny Brand

Credit: Avopross/Shutterstock.com

South Africa’s Libstar, which drew takeover liking this twelvemonth amid a strategical review, has sold its caller mushrooms business to an undisclosed party.

The disposal does not screen nan Denny mushroom brand, which Libstar will exclusively licence to nan caller owner. The South African institution is undergoing a translator to attraction solely connected foods and will now return nan marque into different merchandise areas specified arsenic condiments.

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to scope engaged professionals crossed 36 starring media platforms.

Find retired much

In a banal speech filing yesterday (10 December), Libstar said nan caller mushroom operations see nan disposal of accommodation successful Gauteng and KwaZulu-Natal, effective from 1 December.

The Lancewood dairy marque proprietor did not uncover nan worth of nan transaction.

Libstar received takeover interest from unnamed parties successful September aft revealing successful March that it was evaluating “potential strategies done which to present meaningful worth unlock for stakeholders”. 

Disposing of nan mushroom operations is simply a “further decisive measurement successful simplifying nan group’s portfolio by sharpening its attraction connected privilege categories pinch sustainable maturation potential”, nan institution said.

Libstar said it expects to grounds a pre-tax nonaccomplishment of betwixt R45m ($2.65m) and R55m connected nan mushroom waste for nan financial twelvemonth ending 31 December.

The nonaccomplishment will beryllium included successful reported net per share, but excluded from header net per share.

Alongside nan mushroom exit, Libstar confirmed it is “evaluating” non-binding expressions of liking for nan imaginable waste of its remaining family and individual attraction business Contactim arsenic it seeks to attraction connected food.

A trading update was besides provided for nan 47 weeks to 21 November.

Libstar reported year-to-date gross maturation of 6.7% connected a like-for-like basis, excluding nan mushroom business.

Group volumes roseate 3.1%, pinch value and operation contributing a further 3.6%.

In nan ambient products category, gross accrued by 5.6%. Price and operation changes contributed 5.9%, while volumes decreased by 0.4%.

Export volumes of barren condiments were beneath nan anterior year. Libstar said nan capacity was characterised by a “positive operation change” towards Libstar-branded products and little private-label income to discount retailers successful Australia, nan UK and Japan.

It added that nan Cape Herb and Spice marque continued its “double-digit growth” successful home and world markets.

Revenue successful nan perishable products class roseate by 8.1%. Volumes accrued by 23.2%, while value and operation fell 15%. Excluding nan effect of earthy beverage sales, volumes accrued by 1.4%.

The institution said measurement maturation was driven by value-added chickenhearted products successful some nan unit and foodservice channels.

Sales volumes of halfway dairy sub-category products, including cheese, food and yoghurt, grew by 4.7%.