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Libstar sells fresh mushroom operations at a loss amid portfolio simplification

10th December 2025

By: Marleny Arnoldi

Senior Deputy Editor Online

     

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Consumer packaged goods company Libstar has sold its fresh mushroom operations in Deodar, Gauteng, and Shongweni, KwaZulu-Natal, but retains ownership of the Denny brand.

The company expects to report a loss of between R45-million and R55-million on the sale, before tax, of the operations for the year ending December 31.

The group has been simplifying its portfolio by sharpening its focus on priority categories with sustainable growth potential.

Notably, the disposal does not include the Denny brand, which has instead been licensed to the buyer for exclusive use in the fresh mushroom category.

Libstar will continue to produce and market value-added Denny-branded products, particularly in the wet condiments category.

The loss on sale will be included in the group’s reported earnings a share, but excluded from headline earnings a share for this year.

Libstar is also in the process of selling its non-food category businesses to focus exclusively on food manufacturing. This includes its remaining household and personal care business Contactim.

Meanwhile, excluding the fresh mushroom business, Libstar reported a year-to-date revenue increase of 6.7%, with volumes having increased by 3.1%.

The company experienced lower retail sales value growth in its total defined market in the year-to-date, but positive wholesale channel sales growth in the retail channel. 

Therefore, it says, it is evident that consumers continue to face financial pressure despite moderating inflation and interest rates.

Libstar is on track to achieve its year-end gearing and capital expenditure guidance after reducing its debt-to-normalised earnings ratio to 1.3 times in the first half of this year – on the back of focused capital allocation and continued efficiencies in the dairy and dry condiments subcategories.

 

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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