August 12, 2019 / 10:08 AM / 3 months ago

Libstar sees H1 core earnings up, sells dairy, fruit drinks unit

JOHANNESBURG, Aug 12 (Reuters) - South African food producer Libstar Holdings Ltd expects core earnings to rise as much as 22.8% in the first half, helped by a strong performance in its dry-condiments, snacks and confectionery and baking and baking aids businesses.

The producer of Denny mushrooms said on Monday that the impact of new accounting standards would also lift earnings.

It expects normalised earnings before interest, taxation, depreciation and amortisation (EBITDA) for the six-months to the end of June to rise between 17.8% to 22.8% when the impact of IFRS 9 and 16 is included.

Excluding the change in accounting standards, normalised EDITDA will grow between 3.4% to 8.4%.

Libstar is due to release its first half results on September 4.

The company also said it had entered into a binding agreement to sell its non-core dairy-blend and fruit concentrate beverage operations for an undisclosed amount.

As a consequence of the disposal, a further impairment loss of 72 million rand ($4.67 million) pre-tax or 59 million rand post-tax has been recognised during the first half of 2019 in respect of the dairy-blend and beverage operations of the group. ($1 = 15.4330 rand) (Reporting by Nqobile Dludla; Editing by Kirsten Donovan)

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