Astral Foods issues trading statement amid financial challenges
The South African poultry giant warns of a significant decline in profits due to external pressures.
SOUTH AFRICA – Astral Foods, a leading poultry producer in South Africa, has announced it will release its financial results later this month, but has already issued a warning about a significant drop in earnings per share.
For the first half of 2025, the company projects a 45% to 55% decrease in earnings per share compared to the same period last year.
Headline earnings per share are expected to fall by as much as 50% to 60% year-over-year, according to the company’s forecast.
This decline is in line with regulations on the Johannesburg Stock Exchange, which require companies to notify the public if their financial results are expected to differ by 20% or more from the previous period.
In its voluntary trading update issued at the end of March, Astral Foods cited several factors contributing to its weak performance.
The company pointed to pressure on profit margins caused by limited consumer spending and heightened competition from other frozen chicken products, which further squeezed prices.
Feed costs, which are linked to weather-related challenges impacting corn production in 2024, have also added to the financial strain.
Adding to the difficulties, Astral Foods suffered a cybersecurity breach in mid-March that affected its production operations.
The company estimates the attack resulted in a loss of around US$1.1 million (ZAR 20 million) during the reporting period, causing delays and additional expenses to clear the backlog in production.
Despite this, Astral Foods was able to resume normal operations within days and confirmed that no sensitive data was compromised during the incident.
Astral’s financial results for the first half of 2025 are set to be published on May 19, with the company expected to provide further details on its performance.
With chicken production of around 257 million birds per year, Astral Foods leads the rankings of Africa’s largest poultry meat companies.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
