Astral Foods reports strong recovery

SOUTH AFRICA – South Africa’s largest poultry producer, Astral Foods, has reported that it is anticipating a positive shift in economic conditions and consumer demand for 2025, following a recovery from a rare financial loss in the previous year. 

The company reported a substantial increase in its earnings for the year ending September 30, following a difficult period marked by power disruptions and a severe bird flu outbreak.

For the fiscal year, Astral Foods posted headline earnings per share (EPS) of US$1.06, a sharp turnaround from the previous year’s loss of US$0.70 per share. 

The company’s revenue also showed a 6.4% increase, rising to US$1.08 billion. 

Looking ahead, Astral expects economic conditions to improve in 2025, partly due to a series of expected interest rate cuts in South Africa. 

These rate reductions, along with the country’s new pension reforms, which allow partial withdrawals from retirement savings, are expected to stimulate consumer demand. 

The company estimates its EPS for the year will be between US$0.97 and US$1.04, a significant improvement from the previous year’s loss of US$0.68 per share.

In other news, Astral Foods recently announced a leadership change as Gary Arnold, the company’s current Chief Operating Officer (COO), will take over as Chief Executive Officer (CEO) on February 1, 2025. 

Arnold, who has been with the company for 28 years, will succeed Chris Schutte, who is set to retire after the company’s annual general meeting in January.

The leadership transition comes after a challenging period for Astral Foods, which is forecasting a return to profitability for the year ending September 30. 

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