Libstar Holdings Ltd. · JSE:LBR
Libstar — H1 2025 Earnings Presentation
49 slides from Libstar's earnings presentation, September 2025
Slide 1: Interim Results Presentation – six months ended June 2025
NTHS EN DED NE 2025
Slide 2: Presentation agenda
WSF PRESENTATION Ou Of OVERVIEW OF RESULTS & STRATEGIC PROGRESS (oz) FINANCIAL REVIEW } 03 CATEGORY PERFORMANCE OF H2 FOCUS AREAS (a) GROUP OUTIOOK )
Slide 3: Overview of Results & Strategic Progress
LIBSTAR QUALITY BRANDS GREAT FOOD SPECIAL @) OVERVIEW OF RESULTS & STRATEGIC PROGRESS
Slide 4: Grocery trends: retail and wholesale growth
12% 10.8% 10.7% 10% 9.6% 9.0% 9.1% 9.5% 9.8% 8.4% 8.3% 9.1% 8.0% 7.9% 8% 8.1% 8.1% 6.9% 6.9% 7.7% 6.2% 7.4% 6.0% 6% 6.6% 6.7% 6.1% 5.5% 4% 3.8% 2% 3.0% 0% Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2024 2025 12MM Total Retail 12MM Total Wholesale Source: Ask’d Grocery Trends, 12MM Ending Ju
Slide 5: Meaningful progress continues with execution of strategic focus areas
Meaningful progress continues with execution of strategic focus areas: Increased focus on Growth Improved operational & Portfolio & Operating Model financial momentum SIMPLIFY ▪ Streamlining portfolio to focus on value-added food categories ▪ Driven by customer & channel growth, ongoing operating mo
Slide 6: Simplify
SIMPLIFY Ongoing portfolio rationalisation Wet Condiments ▪ Shared-service functional structure implemented ▪ Strategic intent to focus on value-added food categories continues ▪ Stronger trading, customer development & procurement Integration of Meal Ingredients (Retail), Snacks & Spreads ▪ Progres
Slide 7: Grow: One Libstar high-performance culture programme
GROW Continued implementation of One Libstar high-performance culture programme ▪ Focus on improvements in performance management processes & ways of working ▪ Strong emphasis on upholding value, customer & brand promises ▪ Launch of 12-month Leadership programme – focus on succession, training & up
Slide 8: Grow: Wet Condiments, Dry Condiments, Meal Ingredients & Baking
GROW Wet Condiments Dry Condiments Revenue growth supported by: ▪ Growth in own-branded & private label sauces, ▪ Momentum driven by international retail listings pesto's & vinegars across multiple geographies ▪ Improved contract manufacturing demand ▪ Export growth in own-branded spices, ▪ Sustaine
Slide 9: Grow: Dairy, Value-added Meats, Fresh Mushrooms
GROW Dairy ▪ Lancewood retail brand market share gains & volume growth in the core categories of cheese, butter & yoghurt ▪ Balanced supply-demand dynamic in milk procurement, which aided inventory levels ▪ Under-recovered production costs as production was lowered in favour of selling down existing
Slide 10: Sustain: Sustainable Operations & Business Practices
SUSTAIN Sustainable Operations & Business Practices ▪ Focus on increasing use of green energy alternatives • Continued work with landlords for solar installations at facilities • Investigation of wheeling arrangements ▪ Effluent treatment & water recovery project at Lancewood ▪ Implemented further G
Slide 11: H1 2025 key metrics
(Volume +4.1% Price/mix +2.6%) # (H1 2024: 20.7%) (H1 2025: R465 m) (H1 2025: 23.2 cps) (H1 2025: 16.7 cps) (H1 2024: 1.6x) (H1 2024: 57.2%) (H1 2024: 9.6%) # Group volumes are shown after adjustments for extraordinary items ^ Normalised EBIT/EBITDA & Normalised EPS/HEPS from continuing operations,
Slide 12: 2025 has been an award-winning year so far
2025 has been an award-winning year so far 21 awards and counting… 18 AWARDS & COUNTING BEST DAIRY PRODUCER TROPHY SA FOOD & BEVERAGE AWARDS: 11 AWARDS SA DAIRY CHAMPS: 5 FIRST PRIZE AWARDS 2 QUALITÉ AWARDS 12
Slide 13: Financial Review
—" LIBSTAR QUALITY BRANDS GREAT FOOD SPECIAL MOMENTS O27) FINANCIAL REVIEW
Slide 14: Income statement summary H1 2025
(R’m) H1 2025 Change H1 2024 * Revenue 5 958.1 +6.7% 5 585.3 Gross profit margin (%) 21.6% +0.9pp 20.7% Other income 8.9 7.0 Gain on foreign exchange 10.7 11.0 Capital items -12.2 1.1 Operating expenses -1 066.2 +9.4% -974.8 Margin -17.9% -17.5% Operating profit 230.8 +14.6% 201.4 Margin 3.9% 3.6% N
Slide 15: Capex and net working capital
H1 2025 Change H1 2024 Total Capex R83.7m +4.1% R80.4m H1 2025 H1 2024^ 2024^ Capex % of 1.4% 1.4% revenue NWC (days) 68 69 73 NWC (% of revenue) 17.6% 18.0% 19.1% ▪ NWC improvement was impacted by: ▪ Trade creditors’ days increase of 2 days Replacement / Maintenance 49.5% ▪ Trade debtors’ days decr
Slide 16: Gearing, interest cover and ROIC
H1 2025 H1 2024 2024 Targets Gearing ratio 1.3 1.6 1.5 <2.0 Interest cover 5.7 5.1 5.4 >3.5 ROIC 9.1% 9.6% 8.6% >WACC Target: >65% 16
Slide 17: Category Performance
QUALITY BRANDS GREAT FOOD SPECIAL MOMENTS /\ {6 3.) CATEGORY PERFORMANCE 17
Slide 18: Normalised EBITDA margin by category
Normalised H1 2025 H1 2024 Target 2025 EBITDA margin * Continuing Operations 18
Slide 19: Groceries category: 50% of Group revenue
50% of Group revenue Highlights Challenges ▪ Strong performance of Wet Condiment offerings ▪ Margin pressure in Snacking ▪ Retail volume growth of 7.5% ▪ Capacity constraints of bulk vinegar to the Industrial channel ▪ Improved gross profit margin, driven by: ▪ Production efficiencies in Wet Condime
Slide 20: Groceries sub-category performance
Sub-category Revenue EBITDA Comments YoY YoY ▪ Strong demand in Retail & Industrial Wet Condiments +16.8% +124.4% channels sauces ▪ Volume growth in Retail & Food Meal Ingredients, Snacks +2.1% -13.8% Service channels & Spreads ▪ Margin pressure in Snacking ▪ Lower export volumes, improved mix Dry C
Slide 21: Fresh category: 49% of Group revenue
49% of Group revenue Highlights Challenges ▪ Volume sales of core Dairy category items (cheese, butter & ▪ Lower retail fresh milk & industrial whey powder volumes in the yoghurt) increased by 2.3% Dairy sub-category ▪ Lancewood Retail brand market share gain of 1.3% in total ▪ On-sale of unprocesse
Slide 22: Fresh sub-category performance
Revenue EBITDA Sub-category Comments YoY YoY ▪ Weak demand, margin pressure & Dairy +6.4% -4.2% the impact of foot & mouth disease ▪ Increased value-added chicken Value-added Meats +10.3% +13.9% volumes ▪ Strong retail sales growth, offset by Convenience Meals +1.9% -12.9% increased operational cost
Slide 23: HPC category: 1% of Group revenue
1% of Group revenue Revenue by channel H1 2025 Contribution Retail & Wholesale -0.1% 94.9% Industrial & Contract Manufacturing -3.1% 3.0% Exports +5.1% 2.1% Category revenue -0.1% 100.0% Category performance Volume Price/mix H1 2025 Change H1 2024 Revenue (R’m) +4.0% -4.1% 76.1 -0.1% 76.2 Gross prof
Slide 24: H2 Focus Areas
LIBSTAR QUALITY GREAT FOOD SPECIAL H2 FOCUS AREAS
Slide 25: Simplify (Portfolio and Operating Model)
Simplify (Portfolio and Operating Model) ▪ Closure of Denny Cape Town (Phesantekraal) facility ▪ Exit shareholding in Umatie (Baby food) ▪ Site integration in Wet Condiments ▪ Divestment from remaining HPC division, Contactim remains a priority – primary focus on improving sustainable performance ▪
Slide 26: Grow and Sustain
Grow Sustain ▪ Drive growth in Value-added Meats sub-category through innovation ▪ Execute procurement & ESG initiatives & premium offerings ▪ Navigate trade & regulatory shifts in export ▪ Expand Exports & Food Service channels with targeted offerings ▪ Support Retail & Wholesale growth through fo
Slide 27: Value unlock for stakeholders and cautionary announcement
▪ Value unlock for stakeholders announced 18 March 2025 ▪ Cautionary announcement • Non-binding expressions of interest (EOI’s) received • Potential acquisition of all Libstar securities in issue • No certainty of a binding offer 27
Slide 28: Group Outlook
LIBSTAR QUALITY GREAT FOOD SPECIAL
Slide 29: Consumer pressure remains high despite some improving indicators
Consumer pressure remains Global volatility from trade Elevated input & logistics high despite some improving tensions & geopolitical costs impacting margins indicators uncertainty Operational efficiencies Accelerate innovation Adapt to regulatory Strengthen supply Invest in people, prioritised acro
Slide 30: Quality Brands, Great Food, Special Moments
QUALITY BRANDS GREAT FOOD SPECIAL MOMENTS
Slide 31: Cash flow statement and category contributions
CASH FLOW STATEMENT CATEGORY CONTRIBUTIONS QUALITY GREAT SPECIAL BRANDS FOOD MOMENTS 31
Slide 32: Reconciliation of Normalised EBITDA to Normalised headline earnings
Reconciliation between Normalised EBITDA, Normalised earnings & Normalised headline earnings (R’m) H1 2025 Change H1 2024 Normalised EBITDA 464.6 7.5% 432.3 Less: Depreciation & Amortisation -168.4 -178.3 Net finance cost -99.8 -93.3 Impairments -15.2 - Taxation & the tax effect of normalisation adj
Slide 33: Normalised earnings and EPS
H1 2025 Change H1 2024 Normalised earnings (R’m) 129.4 +7.5% 120.4 Normalised headline earnings (R’m) 138.4 +15.7% 119.6 WANOS (million) 595.8 595.8 Normalised EPS (cps) 21.7 +7.4% 20.2 Normalised HEPS (cps) 23.2 +15.4% 20.1 33
Slide 34: Revenue by sales channel
YoY change Revenue by Price/ H1 2025 Volume ^ mix sales channel Retail & Wholesale +4.9% +2.6% +2.3% Food Service +5.3% +7.6% -2.3% Exports +0.4% -6.6% +7.0% Industrial & Contract Manufacturing +24.4% +10.8% +13.6% Total Group +6.7% +4.1% +2.6% 34 ^ Excluding extraordinary raw milk, discontinued bev
Slide 35: Revenue by channel per category
Revenue by channel H1 2025 Contribution Retail & Wholesale +2.6% 53.6% Exports -1.2% 16.7% Food Service +15.1% 14.4% Industrial & Contract Manufacturing +20.4% 15.3% Category revenue +6.0% 100.0% Revenue by channel H1 2025 Contribution Retail & Wholesale +7.4% 58.7% Food Service +0.4% 25.7% Industri
Slide 36: Supporting Data: Income Statement
— LIBSTAR SUPPORTING DATA INCOME STATEMENT BALANCE SHEET CASH FLOW STATEMENT CATEGORY CONTRIBUTIONS QUALITY GREAT SPECIAL BRANDS FOOD MOMENTS 36
Slide 37: Summary balance sheet
R’m H1 2025 H1 2024 Non-current assets 4 720.7 5 479.9 Property, plant & equipment 1 515.4 1 686.1 Right-of-use-assets 516.5 466.4 Other non-current assets 2 688.8 3 327.4 Current assets 4 390.0 4 278.1 Total assets 9 110.7 9 758.1 Equity 4 887.5 5 285.6 Non-current liabilities 2 237.7 2 306.5 Other
Slide 38: Net gearing calculation
Net Gearing calculation = Net debt : Normalised EBITDA (Excluding IFRS 16) (R’m) 2 500 Notes: 2.1x 2.0 R1.6bn in unutilised funding facilities 2 000 1.6x 1.6x 1.5 1.5x Gearing: 1.3x 1 500 1 568 1.3x (Debt covenant <2.5) 1 431 1 343 1.0 1 000 1 183 1 070 Interest cover to EBITDA: 5.7x 873 746 834 811
Slide 39: Debt structure
Facility Maturity Rate 3M H1 2025 H1 2024 (R’m) date JIBAR margin Utilised Utilised Debt structure Facility A 1 000 Dec-26 1.70% 1 000 1 000 Facility B 150 Dec-26 1.60% 70 150 Facility C 200 Dec-26 1.65% - 80 Facility D 350 Dec-26 1.70% - - Total term loans 1 070 1 230 Vehicle & Asset Prime 650 N/A
Slide 40: Supporting Data: Cash Flow Statement
—" LIBSTAR SUPPORTING DATA INCOME STATEMENT BALANCE SHEET CASH FLOW STATEMENT CATEGORY CONTRIBUTIONS QUALITY GREAT SPECIAL BRANDS FOOD MOMENTS 40
Slide 41: Cash flow summary
H1 2025 (R’m) H1 2024 (R’m) 493 Opening cash balance 397 467 Cash generated from ops 444 36 Working capital changes -163 -101 Net finance charges -97 -71 Tax paid -51 331 Cash generated from operating activities 134 -72 Investment activities -45 -311 Finance activities -196 -1 Effects of exchange ra
Slide 42: Investing and financing activities
R’m H1 2025 H1 2024 Net investing activities -71.8 -44.7 Purchase of PPE -76.2 -51.0 Sale of PPE +4.4 +6.0 Insurance proceeds - +0.3 Net financing activities -310.8 -195.5 Lease payments -47.2 -56.7 Net movement from term loans & asset-based financing -174.2 -49.4 Dividend paid -89.4 -89.4 42
Slide 43: Supporting Data: Category Contributions
SUPPORTING DATA QUALITY GREAT SPECIAL FOOD 43
Slide 44: Category contribution to revenue
H1 2025 H1 2024 49.5% 49.8% 49.2% 48.8% * Restated 1.3% 1.4% 44
Slide 45: Category contribution to EBITDA
H1 2025 H1 2024 66.9% 65.3% 32.3% 33.4% * Restated 0.8% 1.3% * Before allocation of corporate costs 45
Slide 46: Contribution to change in EBITDA: Groceries
Weighted contribution to change in Normalised EBITDA Wet Condiments +17.4% Dry Condiments +1.1% 100% of category EBITDA Baking -1.4% Meal Ingredients, Snacking & Spreads -6.2% Beverages -0.3% Total +10.6% 46
Slide 47: Contribution to change in EBITDA: Fresh
Weighted contribution to change in Normalised EBITDA Dairy -3.4% 100% of category EBITDA Value-added Meats +3.5% Convenience Meals -0.4% Fresh Mushrooms +4.3% Total +4.0% 47
Slide 48: Contribution to change in EBITDA: HPC
Weighted contribution to change in Normalised EBITDA 100% HPC -32.7% of category EBITDA Total -32.7% 48
Slide 49: Forward-looking statements disclaimer
Certain matters discussed in this document regarding Libstar’s future performance, that are neither reported financial results nor other historical information but involve known and unknown risks based on assumptions regarding the group’s present and future business strategies and the environments i