Food producer Libstar is on track to finalise the simplification of its operating structures within the newly established perishable products and ambient products categories by the end of 2024.
The company, which exports its food products to more than 50 countries, said on Wednesday that its year-to-date revenue increased by 4.6%.
Category growth initiatives, launched during 2023, yielded benefits as the dairy and wet condiment subcategories performed strongly.
While local consumer demand was subdued, its export channel outperformed, benefiting from a renewed business development focus initiated in 2023.
With support from focused capital allocation and sustained working capital monitoring, the group is on track to reduce its net interest-bearing debt to normalised earnings before interest, taxes, depreciation and amortisation (ebitda) ratio to below 1.5 by the end of 2024.
Its perishable products category revenue increased by 4.4%, with selling price inflation and mix changes contributing 7.7% to sales growth. Sales volume declined by 3.3%, driven mainly by lower beef volumes in the food service channel.
The ambient products category’s revenue increased by 5.3%, driven by a recovery of wet condiment volumes in the industrial channel compared with the weak demand in the previous period.
Dry condiment sales in the export channel delivered volume growth, with a strong pipeline of orders to be delivered in the coming months.
Group gross profit margins have been sustained above those of the first half of 2023 due to effective price realisation, cost management, improved product basket mix and production efficiencies.
General and administrative expenses remained well-controlled.
Improving customer service levels and cost efficiencies through targeted projects would remain a key priority to deliver the sustainable improvement of operational performance and margins, the company said.
It expects to release its interim results on September 10.
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