JSE-listed consumer packaged goods group Libstar has reported a 2.5% increase in revenue in the year to November 22, despite sales volumes having declined by 2.9%, compared with the same period of last year.

In a pre-close trading update, the company advises that trading conditions have improved in the fourth quarter of the year following a weaker performance in the third quarter, which was owing to soft retail and food service channel demand.

In the Ambient Products category, wet condiments delivered a resilient performance, driven by strong retail channel demand and improved contract manufacturing volumes.

The dry condiments subcategory benefited from improved capacity utilisation and production efficiencies following the successful transfer of production lines between business units earlier in the year.

Libstar says the Baking category continued to be impacted on by weak demand for wraps in the quick-service restaurant (QSR) subchannel, showing some recovery into the fourth quarter.

The snacks category delivered an improved trading result from the start of the second half of the year; however, it remains slow compared with the prior year.

In the Perishable Products category, Libstar's Lancewood brand successfully increased its market share in the soft cheese and yoghurt categories, while maintaining its position as the market leader in the natural cheese category, despite heightened price competition.

The Value-Added Meats subcategory underperformed owing to lower QSR beef volumes, which was partly offset by increased demand for retail and contract manufactured fresh and frozen chicken products.

Libstar's gross margins remain in line with that of the prior year, notwithstanding a decline in sales volumes, reflecting the group's continued focus on price management, operational efficiencies and cost-savings.

Meanwhile, Libstar confirms that the effective date of the disposal of its interest in Chet Chemicals to Mithratech is December 30. The company has been divesting assets from its Household and Personal Care division in efforts to focus on its food categories.

Libstar expects to publish its financial results for the year ending December 31 on or about March 18 next year.