Libstar cost control cuts cash from operations

Libstar, a leading South African food manufacturer, has been navigating through challenging times marked by high inflation and supply chain disruptions. Outgoing CEO, Andries van Rensburg, sheds light on the company's strategies to cope with these challenges and maintain operational efficiency. In a recent interview with CNBC Africa, Van Rensburg discussed the impact of rising inflation on the company's operations. With the recent surge in US inflation numbers affecting global commodity markets, companies like Libstar are facing significant cost pressures. Van Rensburg highlighted the company's efforts to mitigate the impact of inflation by investing in additional generation capacity to ensure uninterrupted operations. He emphasized the importance of innovation in optimizing production processes and enhancing product quality to offset rising costs. Despite the challenges posed by inflation, Van Rensburg expressed confidence in Libstar's ability to weather the storm and protect its cash reserves. The company has made substantial investments in stockpiling essential products to safeguard against supply shortages and maintain customer satisfaction. Van Rensburg's departure after 17 years of service signals a transition for Libstar, but he is optimistic about the company's future trajectory. He praised the incoming executive team for their competence and vision, underscoring the importance of safeguarding both employees and customers amidst ongoing challenges. Looking ahead, Van Rensburg expressed optimism about South Africa's prospects, citing the country's potential for growth and investment opportunities. He highlighted the resilience of the nation's people and the significance of collaborative efforts to overcome obstacles and drive economic development. As he embarks on a new chapter post-retirement, Van Rensburg remains committed to supporting the country's progress and embracing new experiences.