Libstar full-year revenue up 10.7%

South African food brand owner Libstar has defied the odds with a remarkable 10.7% revenue growth, navigating through a tumultuous operating environment marred by supply chain disruptions, inflation, constrained consumer spending, and record load shedding. The company's CEO, Charl de Villiers, shed light on the challenges faced and the strategic measures taken to ensure continued success. The impact of load shedding loomed large over Libstar, with an additional R39 million in operating costs incurred during the year under review. De Villiers highlighted the severity and frequency of load shedding, which significantly added to production costs. To mitigate this, Libstar has invested heavily in additional generation capacity across its facilities since 2020, with plans for further investment in the upcoming financial year. Despite the inflationary pressures, Libstar managed to keep controllable overheads below the published CPI rate of 6.9%, signaling a commendable feat in cost control. The company has worked closely with trading partners to ensure that price adjustments are made in line with market dynamics while offering consumers a range of price points. On the export front, Libstar faced challenges due to supply chain disruptions stemming from COVID-19, impacting volumes in export sales. However, the company sees an opportunity to tap into new international markets in the upcoming year. While the USA and Canada remain key export destinations, Libstar is eyeing expansion in European, Japanese, and Asian regions. Looking ahead, Libstar aims to capitalize on the shift in consumer behavior towards out-of-home consumption, driven by factors such as tourism and convenience amidst load shedding. The company's focus on developing its top six divisions underscores its resilience in the face of ongoing challenges. Despite a cautious stance, Libstar is well-positioned to navigate the current environment and sustain growth momentum. With a strategic approach and a commitment to operational excellence, Libstar continues to demonstrate resilience and adaptability in a dynamic market landscape.