South African food producer Libstar reported a sixteen.1% drop in full-12 months profits on Wednesday after taking a write-down on its commercial enterprise making connoisseur teas, mixed dairy beverages and fruit concentrates.
The manufacturer of Lancewood dairy products stated normalized basic and diluted headline earnings according to the proportion (Heps) for the total-yr ended December 31, 2018, fell to 73 cents from 87 cents in the preceding yr.
Heps is the primary earnings measure in South Africa, which excludes positive one-off gadgets.
“An impairment loss in the quantity of R42 million become recorded in respect of the residual dairy-blend and fruit concentrate beverage operations because the group deliberates its strategic options concerning this issue of the commercial enterprise,” it stated in a declaration.
Revenue rose 12.Five% to R9. Nine billion, with organic revenue up 5.1%, reinforced by the release of Lancewood branded dairy products.
Libstar has multiplied potential and entered high-growth classes during the last 12 months, buying Sonnendal Dairies, ready-to-devour meals producer Millennium Foods and Khoisan Tea.
It plans a frozen specialty bread facility, as well a new plant to toast granola and alongside comparable production projects in perishables and specialized meals packaging.
“In the coming year, the benefits of latest production centers and delivered capacity is anticipated to impact F2019 trading outcomes undoubtedly,” it stated.
By 0710 GMT, shares in Libstar have been up 2.Eight% at R7.30.