{"id":2375,"date":"2025-12-10T15:37:52","date_gmt":"2025-12-10T15:37:52","guid":{"rendered":"https:\/\/microvibenews.com\/?p=2375"},"modified":"2025-12-10T15:37:52","modified_gmt":"2025-12-10T15:37:52","slug":"libstars-mushroom-disposal-triggers-pre-tax-loss-of-up-to-r55m","status":"publish","type":"post","link":"https:\/\/microvibenews.com\/?p=2375","title":{"rendered":"Libstar\u2019s mushroom disposal triggers pre-tax loss of up to R55m"},"content":{"rendered":"

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Libstar Holdings Limited has finalised the disposal of its fresh mushroom operations, effective 1 December 2025, a move projected to result in a pre-tax loss on sale of between R45 million and R55 million.<\/p>\n

This loss will be included in the group\u2019s earnings per share but excluded from its headline earnings per share.<\/p>\n

The group stated that the disposal represents a further decisive step in simplifying its portfolio by sharpening its focus on priority food categories with sustainable growth potential.<\/p>\n

Listen\/read: Potential takeover bid sees Libstar shares surge<\/p>\n

The sale of the fresh mushroom business included the properties in Gauteng (Deodar) and KwaZulu-Natal (Shongweni) as a going concern.<\/p>\n

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Importantly, the popular Denny brand was retained by Libstar and merely licensed to the purchaser for exclusive use in the fresh mushroom category. Libstar will continue to produce Denny-branded products in other core segments like wet condiments.<\/p>\n

Libstar share price<\/strong><\/p>\n

Trading momentum remains strong<\/strong><\/p>\n

Despite taking the loss on the mushroom disposal, the group\u2019s continuing operations demonstrated a resilient performance, reporting year-to-date revenue growth of 6.7% for the 47-week period ended 21 November 2025 (on a like-for-like basis, excluding the mushroom business).<\/p>\n

Total group volume growth was 3.1%, supported by a 3.6% contribution from price\/mix changes. This performance outpaced the group\u2019s total defined market (excluding staples).<\/p>\n

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Highlights within the food portfolio include:<\/p>\n

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  • Perishable products category revenue increased by 8.1%. Volumes increased 1.4% (excluding raw milk sales), driven by value-added chicken products.<\/li>\n
  • Volume sales of core dairy items increased by 4.7%, reflecting Lancewood\u2019s continued market leadership.<\/li>\n
  • Ambient products category revenue increased by 5.6%, buoyed by strong performance in the wet condiments sub-category.<\/li>\n<\/ul>\n

    The group\u2019s gross profit margins tracked ahead of the prior year.<\/p>\n

    The balance sheet shows improved efficiency, with the net interest-bearing debt to normalised earnings before interest, tax, depreciation and amortisation (Ebitda) ratio reducing from 1.3 times in H1 2025, positioning the group to meet year-end gearing guidance.<\/p>\n

    Listen:
    Libstar retains dividend despite slip in profit
    Libstar revenue up 5%<\/p>\n

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