Astral Foods Reports Strong Financial Recovery

Astral Foods ( (ALFDF) ) has released its Q4 earnings. Here is a breakdown of the information Astral Foods presented to its investors.

Astral Foods is a leading integrated poultry producer in South Africa, involved in the manufacturing of animal feeds, production and sale of day-old chicks and hatching eggs, and integrated breeder and broiler production operations. The company recently reported a significant turnaround in its financial performance for the year ended 30 September 2024.

Astral Foods’ latest earnings report reveals a notable recovery, with revenue increasing by 6.4% to R20.5 billion, largely driven by the improved performance of its Poultry Division. The company achieved an operating profit of R1.125 billion, a significant improvement from the previous year’s operating loss, attributed to reduced costs associated with loadshedding and bird flu. Headline earnings per share rose sharply by 245.1% to 1,920 cents.

The Poultry Division saw a revenue increase of 7.7% to R17.1 billion, benefiting from higher broiler sales volumes and improved sales realisations. Operating profit for this division rose by 142% to R580 million. Conversely, the Feed Division reported a decline in revenue by 15.2% due to lower feed prices and sales volumes. Despite these challenges, the company reported a strong cash inflow and cleared all its overdraft funding by the end of the financial year.

Looking ahead, Astral Foods’ management remains cautious about external risks such as bird flu and water supply disruptions. However, they are optimistic about potential economic improvements due to expected interest rate cuts and favorable weather conditions for maize production. The company plans to continue its focus on cost efficiency and maintaining manageable stock levels, which could support future growth and profitability.