Shares in consumer goods group Libstar rose more than 6% on Wednesday after it said it has managed to deliver gross profit margin improvements even as its volumes come under pressure.
In a pre-close update for the period to 24 May, the owner of Lancewood cheeses – which has simplified its structure and improved its cost competitiveness as part of a turnaround strategy – said it achieved revenue growth of 4.6% even amid a fall in volumes of 1.7%.
Margins were sustained above that of the prior half-year, with effective price realisation, improved product basket mix and production efficiencies all helping, it said. At the same time, general and administrative expenses remained well-controlled.
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