South Africa’s largest poultry producer, Astral Foods, sold more chickens and earned more revenue in the first six months of this financial year, but saw its profits reduced because of higher costs and lower selling prices.
Reporting results for the half-year to the end of March 2025, Astral said operating profit was down 51% and headline earnings per share were 54% lower than the same period last year. It also improved its cash position and declared a dividend of 220 cents per share.
The company said that, despite higher chicken production and increased sales, the poultry division made a loss for the period of R26 million compared to a profit of R284 million last year. Poultry selling prices were 3.1% lower than last year while feed costs and operating expenses were higher.
This resulted in Astral “subsidising” the cost of producing chicken, it said, with the broiler margin reduced to -1.1%.
The outlook was mixed. On the plus side, Astral saw the prospect of lower feed costs, higher broiler placements and improved sales volumes. On the other hand, it warned of a deteriorating economy, high unemployment and constrained consumer spending.
Astral said the “uncertain landscape, with trade wars, various conflicts and shifting alliances” could lead to possible economic slowdowns, market uncertainty and currency volatility.
