Libstar Holdings Ltd. · JSE:LBR
Libstar — RMB Morgan Stanley Off Piste Conference 2024
22 slides from Libstar's conference presentation, Sep 18, 2024
Slide 1: Libstar Holdings Limited – 18 September 2024
LIBSTAR LIBSTAR HOLDINGS LUMITED QUALITY GREAT SPECIAL MOMENTS
Slide 2: Introduction, New Strategic Direction, Financial Highlights, Investment Case
QUALITY BRANDS GREAT FOOD SPECIAL MOMENTS INTRODUCTION A NEW STRATEGIC FINANCIAL INVESTMENT DIRECTION HIGHLIGHTS. CASE
Slide 3: Introduction
LIBSTAR INTRODUCTION QUALITY BRANDS GREAT FOOD SPECIAL MOMENTS
Slide 4: As one Libstar, we unlock value through sustainable, profitable growth
As one Libstar, we unlock value through the sustainable, profitable growth of our select portfolio of consumer-inspired food brands and the development of innovative category solutions. We achieve this by being trusted partners, working closely with our customers and constantly enhancing our reputat
Slide 5: Private label, Libstar brands and principal brands
PRIVATE LABEL AND DEALER-OWN BRANDS Private label brands are owned and sold by a retailer under the retailer’s name. of branded Dealer-own brands often have a unique name and are available exclusively products at the retailer that owns them. LIBSTAR BRANDS Libstar owns several well-known brands that
Slide 6: Retail and wholesale, food service, industrial and contract manufacture
RETAIL AND WHOLESALE We supply products across our product categories into the retail and wholesale channel. Our brand solutions, combined with longstanding and successful relationships with South Africa’s largest food retailers, allow us to strategically position our Libstar brands alongside dealer
Slide 7: Market share leadership and gains across key categories
Value market share and gains across key Lancewood categories: Leading the category at Market share gain of Market share gain of Grew by Grew by increase with with in spontaneous market share, with brand awareness of growth growth Lancewood yoghurt growth #2 in the #2 in the Remains the #1 convenienc
Slide 8: A New Strategic Direction
LIBSTAR A N EW QUALITY STRATEGIC BRANDS DIRECTION FOOD SPECIAL MOMENTS
Slide 9: Founded in 2005, Libstar grew as a private label and brand aggregator
Founded in 2005, Libstar grew initially as a private label and brand aggregator. From 2018, Libstar’s focus shifted to driving manufacturing excellence and efficiency, supported by an aligned Group culture and strategy. Today, Libstar is a portfolio of world-class businesses focused on value-added f
Slide 10: Key strategic themes towards 2027: Simplify, Grow, Sustain
The board and executive leadership conducted a comprehensive strategic review of Libstar’s portfolio composition, operating model and its category and channel participation during the first half of 2023. • Our Key Strategic Themes towards 2027: SIMPLIFY GROW SUSTAIN our portfolio our categories, our
Slide 11: Simplify: reposition the portfolio to value-added food categories
SIMPLIFY Reposition the portfolio to value-added food categories Perishables Groceries Baking & Baking Aids Snacks & Confectionery Household & Personal Care Lancewood Cape Herb & Spice Amaro Foods Ambassador Foods Chet Chemicals Millennium Foods Cape Foods Cani Contactim Finlar Fine Foods Khoisan Go
Slide 12: From business-unit structure to a category structure
SIMPLIFY Consolidate From a multi-category, business-unit structure . . . . . . to a category structure Perishables Groceries Baking & Baking Aids Snacks & Confectionery Household & Personal Care PERISHABLE AMBIENT Lancewood Cape Herb & Spice Amaro Foods Ambassador Foods Chet Chemicals PRODUCTS PROD
Slide 13: Household and Personal Care
Dry Condiments Meal Ingredients Dairy Value-added Meats Snacking Spreads Fresh Convenience Meals Mushrooms Wet Condiments HOUSEHOLD AND PERSONAL CARE Household & Personal Care Baking Beverages 13
Slide 14: Simplify our portfolio and optimise our operating model
KVI1 KVI2 KVI3 KVI4 KVI5 Improve capability and Reduce costs and build capacity to Optimise our operating Simplify our portfolio improve operational identify, acquire and model, structure and Grow profitably and operating model efficiency to increase integrate value culture operating profit accretiv
Slide 15: Financial Highlights
LIBSTAR - FINANCIAL QUALITY HIGHLIGHTS SPECIA MOMENTS 15
Slide 16: H1 2024 financial highlights
(Volume -0.2% Price/mix +5.4%) (H1 2023: 21.2%) (H1 2023: 2.1x) (H1 2023: 8.0%) * Restated ^ Normalised EBIT/EBITDA, Normalised EPS/HEPS, from continuing operations, excludes non-recurring, non-trading and non-cash items 16
Slide 17: Revenue by sales channel
YoY change Revenue contribution Revenue by Price/ H1 2024 Volume mix H1 2024 H1 2023* sales channel Retail & Wholesale +7.0% -5.3% +12.3% 59.2% 58.3% Food Service -5.8% -4.3% -1.5% 18.7% 20.8% Export +2.7% +8.4% -5.7% 10.5% 10.8% Industrial & Contract Manufacturing +20.4% +14.6% +5.8% 11.6% 10.1% To
Slide 18: Key financial ratios
Key financial ratios Net working capital (NWC) days increased by 4 days to 67 H1 2024 H1 2023 2023 Targets H1 2024 H1 2023 2023 Gearing 1.6 2.1 1.6 <2.0 ratio NWC (days) 67 63 67 Interest NWC (% of revenue*) 17.6% 16.6% 17.7% 5.6 5.2 4.9 >3.5 cover WACC ROIC 9.6% 8.0% 9.8% H1 2024 % ch. H1 2023 plus
Slide 19: Investment Case
LIBSTAR INVESTMENT CASE MOMENTS 19
Slide 20: Simplified portfolio, structurally well positioned
SIMPLIFIED PORTFOLIO STRUCTURALLY WELL ENTREPRENEURIAL, DEDICATED focused on value-added food POSITIONED MANAGEMENT TEAMS categories, providing innovative to capitalize on current trends and export powered by our people to optimise and solutions to industry leading opportunities in the consumer-pack
Slide 21: Questions & Answers – Thank You
LIBSTAR QUESTIONS & ANSWERS THANK YOU QUALITY GREAT SPECIAL MOMENTS
Slide 22: Forward-looking statements
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
Libstar Holdings — RMB Morgan Stanley Off Piste Conference 2024 on 6ix