Astral's interim earnings hit by headwinds

6th February 2017

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

Font size: - +

The continuing unfavourable trading environment is expected to push the earnings of JSE-listed Astral Foods down by up to 75% for the six months to March 31.

Emerging from a muted first quarter, the negative impacts of weakened consumer spending, high levels of imported poultry, high maize and soya meal prices, lower kilograms sold and planned production cutbacks had spilled over into the second quarter.

Earnings per share (EPS) and headline earnings per share (HEPS) of 94c are expected for the six-month period under review, a significant decline on the EPS of 777c and HEPS of 774c reported in the prior corresponding period the year before.

“The operating profit for the first quarter was 70% lower than in the corresponding period. This decline was expected . . . and indications are that trading conditions that gave rise to this lower profitability will continue well into 2017,” the company said in a trading update to shareholders on Monday.

Astral highlighted the negative impacts of new brining regulations in the poultry industry, leading to lower kilograms sold, the high maize and soya meal prices, which will continue until the new harvest season starts in May and the continuously high levels of imported poultry not under the International Trade Administration Commission of South Africa safeguard duty.

Astral had also introduced planned production cutbacks to alleviate the pressure on the overstocked poultry levels, it said in the update.

The group will release its interim results on May 15.

Edited by Creamer Media Reporter

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION