South Africa’s Astral Foods forecasts EPS growth as poultry and feed operations rebound in H2

SOUTH AFRICA – South Africa’s Astral Foods expects its earnings per share (EPS) to rise for the financial year ending September 30, 2025, citing a stronger performance in the second half driven by improved poultry and feed sales.

In a trading update released on October 29, the company said full-year EPS is anticipated to increase between 7% and 17% to a range of US$1.23 to US$1.34, up from US$1.15 recorded in the previous financial year.

Headline earnings per share (HEPS), which exclude certain once-off items, are projected to climb by 5% to 15%, reaching between US$1.18 and US$1.29 compared with US$1.13 last year.

Astral Foods attributed the turnaround to a rise in broiler slaughter numbers and higher poultry sales volumes compared with 2024, reflecting a stronger operational performance in its poultry division.

The company said that production costs per unit decreased during the second half due to higher throughput, while poultry prices recovered after an extended period of deflation that had weighed on margins in prior months.

Feed operations also contributed to the recovery, with internal sales increasing as broiler output expanded and external feed volumes showing year-on-year growth.

Astral added that it benefited from effective raw material procurement during a period of volatile commodity prices, which helped stabilize input costs across its operations.

Throughout the financial year, management focused on restoring financial stability, saying the group has rebuilt its balance sheet and returned to a targeted surplus cash position.

The company plans to publish its audited full-year results around November 17, which will provide a detailed breakdown of performance across its divisions.

Earlier in the year, Astral had reported weaker results for the six months to March 31, when lower poultry prices and high feed costs significantly reduced profitability.

During that period, revenue rose 3.5% to US$589 million, mainly supported by higher volumes and prices in the feed business, while group operating profit fell by 50.7% to US$14.9 million due to pressure on margins in the poultry unit.

The poultry segment posted a 1.5% revenue increase to US$484 million but slipped into a US$1.4 million operating loss, compared to a US$15.6 million profit a year earlier.

With market conditions improving in the second half, Astral said it expects the full-year outcome to reflect a significant rebound from the challenges that affected the start of the year.

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