Astral Foods Expects Eps Rebound Driven By “strong” Recovery In H2

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South African poultry shaper Astral Foods expects net per stock (EPS) to rebound for nan afloat twelvemonth driven by a “strong recovery” successful nan 2nd half.

In a trading update coming (29 October), nan institution said it expects to study a 7% to 17% summation successful EPS to betwixt R20.96 ($1.23) and R22.91 for fiscal 2025 to 30 September, compared to R19.59 reported a twelvemonth ago.

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Headline net per stock (HEPS) are projected to emergence by 5% to 15% to betwixt R20.16 and R22.08, compared to R19.20 successful nan erstwhile financial year.

Astral attributed nan second-half betterment to respective factors. These see an summation successful broiler bulldoze numbers and higher poultry income compared to nan comparable year.

The institution said per‑unit accumulation costs improved owing to higher accumulation volumes. Poultry income besides improved aft an extended play of value deflation, nan group added.

The betterment was besides supported by higher soul provender income linked to accrued broiler production, a year‑on‑year emergence successful outer provender volumes, and “sound” procurement of basal earthy materials amid volatile commodity markets.

Throughout nan year, Astral Foods said it focused connected “rebuilding” its equilibrium expanse and “successfully” restored a targeted surplus rate position.

It plans to people nan last results connected aliases astir 17 November.

In May, Astral Foods reported a diminution successful first-half profits arsenic little poultry prices and higher provender costs weighed connected earnings.

For nan six months ended 31 March, gross roseate 3.5% to R10.7bn (then $593.5m), driven by accrued volumes and higher trading prices successful nan group’s provender division. 

However, operating profit fell by 50.7% to R271m, chiefly owed to separator unit successful nan poultry business.

Revenue from Astral Foods’ poultry section inched up 1.5% to R8.8bn but nan portion swung to a R26m operating loss, compared to a R284m profit a twelvemonth earlier.