Feed sales drive Astral Foods’ earnings rebound in second half

SOUTH AFRICA – Astral Foods, a leading poultry producer specializing in animal feeds, broiler genetics, day-old chicks, and chicken processing, expects its full-year earnings per share (EPS) to rise for the financial year ending September 30, 2025, as higher feed and poultry sales helped the company rebound from a tough start to the year.

In a trading update released on October 29, the JSE-listed poultry producer said it anticipates EPS growth of 7% to 17%, to US$1.23 to US$1.34, compared with US$1.15 in the previous financial year. 

Headline earnings per share (HEPS), which exclude one-off items, are projected to increase by 5% to 15% to between US$1.18 and US$1.29 from US$1.13 last year.

The company attributed the expected improvement to a rebound in its poultry division, where broiler slaughter numbers and sales volumes rose significantly in the second half of the year. 

Astral noted that production costs per unit dropped due to higher throughput, while poultry prices recovered after months of deflation that had pressured margins.

Feed operations also supported the turnaround. Internal feed sales increased in line with expanding broiler output, and external volumes showed steady year-on-year growth. 

The company said this uptick was aided by “effective raw material procurement during a period of volatile commodity prices,” which helped stabilize input costs across both its feed and poultry segments.

“The second half has seen a marked recovery in our operational performance as efficiencies improved and market conditions normalized,” Astral said in the update.

From weak start to financial recovery

The latest forecast marks a sharp contrast to the first half of the financial year, when Astral reported a steep decline in profitability. 

For the six months ended March 31, group revenue rose 3.5% to US$589 million, mainly supported by the feed business, but operating profit plunged 50.7% to US$14.9 million as high feed costs and weak poultry prices squeezed margins.

The poultry segment, which generates the bulk of Astral’s revenue, recorded a modest 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.

Since then, improved pricing and stronger demand have lifted performance. “With poultry prices recovering and production efficiencies improving, Astral Foods has managed to restore its profitability trajectory,” the company said.

Restored balance sheet and outlook

Management said the group’s balance sheet has been rebuilt, returning Astral to its targeted surplus cash position after several quarters of financial strain. 

The company’s focus on operational stability and disciplined cost management is expected to support sustained recovery into the new financial year.

Astral plans to publish its audited full-year results around November 17, providing a detailed breakdown of performance across its poultry and feed divisions.

As one of South Africa’s largest integrated poultry producers, Astral’s results are seen as a key indicator of the broader livestock feed and poultry market. 

Its second-half rebound signals not only improved efficiency but also strengthening demand fundamentals across the country’s animal protein value chain.

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