Libstar divests fresh mushroom business but keeps Denny brand

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

The disposal does not screen the Denny mushroom brand, which Libstar volition exclusively licence to the caller owner. The South African institution is undergoing a translation to absorption solely connected foods and volition present instrumentality the marque into different merchandise areas specified arsenic condiments.

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

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

Libstar received takeover involvement 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 the mushroom operations is simply a “further decisive measurement successful simplifying the group's portfolio by sharpening its absorption connected precedence categories with sustainable maturation potential”, the institution said.

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

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

Alongside the mushroom exit, Libstar confirmed it is “evaluating” non-binding expressions of involvement for the imaginable merchantability of its remaining household and idiosyncratic attraction concern Contactim arsenic it seeks to absorption connected food.

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

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

Group volumes roseate 3.1%, with terms and premix contributing a further 3.6%.

In the ambient products category, gross accrued by 5.6%. Price and premix changes contributed 5.9%, portion volumes decreased by 0.4%.

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

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

Revenue successful the perishable products class roseate by 8.1%. Volumes accrued by 23.2%, portion terms and premix fell 15%. Excluding the interaction of earthy beverage sales, volumes accrued by 1.4%.

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