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Astral Foods foresees 120% HEPS increase for H1

Astral Foods foresees 120% HEPS increase for H1

Photo by Bloomberg

16th February 2015

By: Tracy Klückow

Creamer Media Contributing Editor

  

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Integrated poultry producer Astral Foods is reasonably certain that its headline earnings a share for the first half of the year will increase by at least 120%, or 465c a share, to 851c a share compared with the 386c a share reported for the comparable 2014 period.

The JSE-listed company based the improvement in earnings on trading conditions experienced up to the end of January 2015 and advised shareholders on Monday that the cause of the increase was as expected.

The improvement in Astral Foods’ results for the six months ending March 31 was attributed to healthy global maize and soya crops, which resulted in the softening of grain prices and, subsequently, benefited feed prices and livestock production costs. The increased feed volumes that included production from the recently commissioned Standerton feed mill, in Mpumalanga, previously supplied by Afgri, were also highlighted, as were increased poultry sale volumes. In particular, Astral Foods noted its expansion in the Western Cape, which included broiler chickens, formerly processed by Tydstroom Poultry and currently contracted from diversified feeds and poultry business Quantum Foods, which owned Tydstroom.   

Astral Foods said the increased poultry sale volumes were the result of good poultry production efficiencies and the fact that cutbacks in the year-ago comparative period were not being repeated. 

“It is [also] notable that Astral did not benefit from lower levels of imports, especially bone-in portions from European Union countries, as the temporary antidumping measures introduced by the International Trade Administration Commission did not have the desired impact,” the company explained. 

Astral would announce a more definite range of the increase in earnings once available and expected to publish its interim results for the first half of 2015 on May 18.

Edited by Creamer Media Reporter

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