Astral Foods expects EPS rebound driven by “strong” recovery in H2

South African poultry producer Astral Foods expects earnings per share (EPS) to rebound for the full year driven by a “strong recovery” in the second half.

In a trading update today (29 October), the company said it expects to report a 7% to 17% increase in EPS to between R20.96 ($1.23) and R22.91 for fiscal 2025 to 30 September, compared to R19.59 reported a year ago.

Headline earnings per share (HEPS) are projected to rise by 5% to 15% to between R20.16 and R22.08, compared to R19.20 in the previous financial year.

Astral attributed the second-half recovery to several factors. These include an increase in broiler slaughter numbers and higher poultry sales compared to the comparable year.

The company said per‑unit production costs improved owing to higher production volumes. Poultry sales also improved after an extended period of price deflation, the group added.

The recovery was also supported by higher internal feed sales linked to increased broiler production, a year‑on‑year rise in external feed volumes, and “sound” procurement of essential raw materials amid volatile commodity markets.

Throughout the year, Astral Foods said it focused on “rebuilding” its balance sheet and “successfully” restored a targeted surplus cash position.

It plans to publish the final results on or about 17 November.

In May, Astral Foods reported a decline in first-half profits as lower poultry prices and higher feed costs weighed on earnings.

For the six months ended 31 March, revenue rose 3.5% to R10.7bn (then $593.5m), driven by increased volumes and higher selling prices in the group’s feed division.

However, operating profit fell by 50.7% to R271m, primarily due to margin pressure in the poultry business.

Revenue from Astral Foods’ poultry division inched up 1.5% to R8.8bn but the unit swung to a R26m operating loss, compared to a R284m profit a year earlier.

"Astral Foods expects EPS rebound driven by “strong” recovery in H2" was originally created and published by Just Food, a GlobalData owned brand.

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