View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
March 19, 2020

Libstar adds frozen meals capability to Millennium Foods

Libstar Holdings revealed it has made a number of investments to boost the South African food group's production capacity and expand its category mix.

By Dean Best

Libstar Holdings revealed it has made a number of investments to boost the South African food group’s production capacity and expand its category mix.

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

The Johannesburg-listed firm, which has a portfolio stretching across bakery, soups, dressings, spices, pasta and dairy, said it invested ZAR24m (US$1.3m) in the recently acquired business Millennium Foods to add the capability to produce frozen ready meals for the retail and foodservice sectors.

“This will position Libstar strongly in a growing market segment during 2020,” the Denny Mushroom brand owner said in its 2019 results announcement. 

Some of the money was also injected to triple the production of convenience foods at Cape Town-based Millennium Foods, which also produces snacks and desserts.

And it has also invested a further ZAR4m to facilitate the local production of Kiri and Laughing Cow cheeses as part of a strategic partnership with France’s Bel Group, which owns those brands.

In terms of financials for the year ended 31 December, Libstar reported a pretty solid set of results. Revenues climbed 2.4% to ZAR9.89bn, while operating profit was up 13% at ZAR701.8m.

Profit before tax rose 23% to ZAR493m, while it delivered a net profit of ZAR356.7m, an increase of 30% over the previous year. 

The earnings report also noted the appointment of Charl de Villiers as an executive director and the group’s chief financial officer, who took up the appointments in January to replace then-CFO Robin Smith. He retained his position at an executive director of Libstar.

Libstar also owns Sonnendal Dairies in the Western Cape, a company producing dairy products such as yogurt and a range of juices. And last year, Libstar saw a portion of the business fall into the hands of another private investor, London-based Actis.

Related Companies

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Food