South Africa’s poultry producer Astral Foods reports decline in operating profit

SOUTH AFRICA – South Africa’s integrated poultry producer, Astral Foods, said its operating profit for the first quarter of its 2019 financial year was significantly low blaming low consumer spending and high poultry stock for the decline. Astral said that constrained consumer spending in the country had a significant effect on the average selling prices, reports Business Report. “It must be noted that the previous year’s results for the same period were at a record historical high, benefiting at the time from low feed costs following a record maize crop…

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Astral Foods profit soars 78.7% on lower chicken feed costs in 2018

SOUTH AFRICA – South Africa’s leading integrated poultry producer Astral has reported 78.7% increase in group operating profit to US$134.99 million, resulting in an operating profit margin of 15%, ANA reports. According to the company, the year was supported by lower feed raw material costs, higher poultry selling prices as well as higher volumes across all divisions. During the year ended September 30, the group said its diluted headline earnings per share jumped 93.9% to 3.708 cents while the company’s external revenue increased by 4.5% to US$924.07 million. The poultry…

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Astral’s earnings growth to double despite lower chicken sales

SOUTH AFRICA – South Africa’s leading poultry producer, Astral Foods has said that its headline earnings per share (HEPS) for the year to End-September are expected to double compared to the previous year’s US$1.29. Business Day reports that the share price of Astral Foods rose 8.4%, the biggest jump in more than a year after announcing that earnings growth would be better than previously forecast. In a trading statement, the company said headline earnings per share will increase by 90-100% for the year. In an earlier trading update in September,…

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Astral Foods manage improved results with 15% revenue increase despite bird flu

SOUTH AFRICA – Astral Foods, the South African integrated poultry producer has reported positive results, having managed 15% increase in revenue to US$535.93 million despite challenges with the Avian influenza in the period, according to IOL Business report. While operating profit grew by 392.6%, the group’s operating profit margin increased 15.7% as compared to the same period last year. The period was favoured with improved poultry supply and demand balance, giving both volume and price support coupled with significant improvement in the poultry division’s profitability. Astral’s Chief executive Chris Schutte…

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Astral Foods wants chicken to be among VAT free food items

SOUTH AFRICA – The South African integrated poultry producer, Astral Foods has expressed its concerns following the increase of Value Added Tax (VAT) on basic commodities, saying that chicken should be exempted from the list. SA Treasury increased VAT to 15% in April from 14% it had been for the past 25 years, adding to the growing pressure on households. The company wanted chicken to be among 19 basic food items that are zero-rated, which include, samp, maize meal, rice, brown bread, legumes, vegetables and fruits among others. “We would…

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Astral Foods foresees more than 400% jump in earnings amid bird flu jitters

SOUTH AFRICA – In a report to shareholders, Astral Foods expects growth in earnings by more than 400% amidst bird flu jitters and the latest Listeriosis outbreak that has caused anxiety in the meat industry. According to the company, it expects its headline earnings per share to grow despite the costs that came with the outbreak of the disease and persistent high prices for feeds. Bird flu disease, one of the major challenges in the South African poultry industry came in the midst of other challenges including high feed costs,…

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Astral sells feed business to Cargill, to focus on poultry operations

SOUTH AFRICA – Southern African integrated poultry producer Astral Foods is ridding itself of a noncore asset in an effort to sharpen its focus on its poultry business. Astral reported on Wednesday that it had sold off its stake in animal nutrition business Provimi to US-based food and agriculture company Cargill for an undisclosed amount. The group could not comment on the acquisition, a spokeswoman for Astral said, citing a closed period. However, she described the cost of the acquisition as “immaterial” in terms of the JSE’s listing requirements. But…

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