Speaking of private label, which we were just above, those Libstar results. Libstar, you will recall, produces Denny mushrooms, Pringles and the Lancewood dairy range, as well as a whole bunch of private label food for the big retailers, including Woolies, Shoprite and Pick n Pay, and they’ve just released their first set of results since listing last year. How did that go? Not bad, considering: revenue up +12.5% to R9.9bn, and operating profit down -3.5% to R574.9m – the latter due in part to an impairment loss of R42m in its dairy-blend and fruit concentrate beverage division, the future of which is under consideration. The business is focusing its efforts in some promising areas – a new tea plant for the local and export markets, a new soft-cheese facility, and the expansion of its prepared meal operations, to meet demand from a growing convenience sector.
Comment: Promising stuff, after a not-so-good listing and even worse interims. We’ll be keeping an eye on their progress with considerable interest.