Food and Beverage Business

Astral Foods provides positive update following “devastating” 2023

Astral Foods provides positive update following "devastating" 2023 Astral Foods Food and Beverage Business

In the South African poultry industry, Astral Foods has made “good headway” in addressing the issues it faced in the past year, which led to a substantial annual loss. The business has implemented a recovery plan, known as Project 3R, which is centred on re-setting, re-focusing, and re-starting its operations. This plan aims to normalize the business post the load-shedding disaster and to rebuild its balance sheet to enhance financial performance.

Astral Foods expects its earnings per share (EPS) and headline earnings per share (HEPS) for the six months ending 31 March 2024 to increase significantly, by at least 300% compared to the same period last year. The company attributes this projected growth to various initiatives it has undertaken to address the challenges it faced, such as power outages, bird flu, and high feed costs.

Despite experiencing a “devastating set of results” in the previous financial year, Astral Foods is regaining traction and making progress in addressing the issues that negatively impacted its performance. The company has maintained emergency backup generator capacity at all its operations and has been able to control diesel expenses below anticipated levels, among other positive developments.

In addition to the improvements in operational efficiency, Astral Foods has adjusted broiler slaughter numbers and managed to align production with current market conditions. The company remains committed to recovering input costs given the depressed consumer spending environment.

Amid these positive developments, Astral Foods is concerned about the recommended poultry import tariff rebate structure, as this does not align with the actual supply levels in the local industry. The company is set to provide a further trading statement in April to keep stakeholders updated on its progress.

Astral Foods continues to navigate the complexities of the poultry industry, implementing various strategic initiatives to drive growth and enhance its financial performance.

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