South African poultry producer Astral Foods has appointed Gary Arnold as its new Chief Executive Officer, effective February 1, 2025. This strategic move comes as the company seeks to build on its recent recovery within the food and beverage industry.
Arnold, who has served as the group’s Chief Operating Officer and an executive director since 2012, brings extensive experience to the role, having spent 28 years at Astral. He will succeed Chris Schutte, who announced his retirement earlier this year and plans to step down on January 30, 2025. During his tenure, Schutte has navigated the company through challenging times, which included significant losses attributed to adverse conditions.
“Astral’s Poultry Division, which reported a R283 million loss in the previous period, managed to return to profitability, signaling a positive turnaround driven by strategic measures,” stated the company in its filing.
With his years of collaboration alongside Schutte, Arnold possesses a profound understanding of Astral’s integrated business model. The board is optimistic about his leadership, expressing confidence that Arnold will uphold and further enhance Astral’s position as South Africa’s leading integrated poultry producer.
The transition occurs at a critical moment for the company, following what Schutte described as “the lowest point in Astral Foods’ proud history” in 2023. The past year presented numerous challenges, including load-shedding, bird flu, and soaring feed costs. In November 2023, the company reported an annual loss of R512.2 million (approximately $27.8 million) for the financial year ending September 2023, highlighting the significant impacts of these adversities.
However, Arnold’s appointment comes in the wake of a successful turnaround strategy initiated by Schutte and his executive team. In a statement regarding Schutte’s retirement announcement, Astral Foods indicated significant improvements: “Following the worst financial period in the group’s history, Astral is currently in a solid and healthy financial position.” This turnaround strategy focuses on Project 3R, aimed at resetting, refocusing, and restarting the business.
Key initiatives include enhancing emergency generator capacity across all operations to mitigate the impacts of frequent power outages, thereby ensuring business continuity amidst challenges in the food and drink business.
As Astral Foods cultivates its future, it remains committed to monitoring food and drink consumer trends and adapting to the evolving landscape of the food and beverage industry. The company is poised to leverage its resilience and expertise under Arnold’s leadership, ensuring continued growth and stability.
