Libster reports 13.8% decline in FY headline earnings
Manufacturing company Libster has released its year end results. They are behind some of the products we consume including Lancewood, and Goldcrest. Despite the food many of us consumed during the lockdown, Libster’s headline earnings per share dropped by 13.8 per cent and their revenue saw a 4 per cent gain. Libster Commercial Director, Robin Smith joins CNBC Africa for more.
Wed, 17 Mar 2021 11:09:47 GMT
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AI Generated Summary
- Libster reported a 13.8% decline in headline earnings per share despite a 4% increase in revenue, attributed to challenges in the food service industry and rising input costs.
- Retail and wholesale channels performed well with a 12.3% growth, while food service experienced a significant 24% decline due to pandemic-related closures.
- Libster remains cautiously optimistic about the recovery of the food service sector, concerns over rising inflation, and the impact of government initiatives on local manufacturing and exports.
Manufacturing company Libster, known for producing products such as Lancewood and Goldcrest, recently released its year-end results. Despite the increase in revenue by 4%, Libster reported a significant 13.8% decline in headline earnings per share. The company's Commercial Director, Robin Smith, joined CNBC Africa to provide insights into the challenges faced by the company during the past year. One of the main challenges highlighted by Smith was the impact of the COVID-19 pandemic on different business channels. While the retail and wholesale sectors performed well, experiencing a 12.3% increase, the food service industry saw a sharp decline of nearly 24%. This decline was attributed to the closure of restaurants and reduced consumer activity in the out-of-home dining sector. Smith mentioned that despite the challenges faced by the food service industry, exports saw a 6% growth, and industrial and contract manufacturing remained stable. Smith attributed the company's overall 4% revenue growth to its presence in multiple channels, which provided resilience during uncertain times. Looking ahead, Smith remains cautiously optimistic about the recovery of the food service industry as restrictions ease and consumer behavior gradually returns to normal. However, he noted that the potential for a second wave of COVID-19 and the success of vaccination programs could impact consumer confidence and purchasing power. Additionally, Smith expressed concerns about rising input costs, including utilities, transport, and commodity prices. He highlighted that the company is working closely with trading partners to manage price points in response to inflation pressures. When discussing government initiatives aimed at reducing imports and boosting local manufacturing, Smith recognized the importance of supporting local industries but cautioned against potential challenges to competitiveness. Despite initial logistical challenges during the lockdown, Smith emphasized the company's competitiveness in export markets due to currency volatility and manufacturing capabilities. Overall, Libster remains optimistic about growth opportunities in export markets, leveraging its competitive manufacturing advantage to drive future success.
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