JSE-listed poultry producer Astral Foods expects its earnings a share for the six months ended March 31, to increase by between 140% and 150% year-on-year.
In a trading statement, the company says this implies that earnings a share are likely to be between R14.21 and R14.80, compared with the R5.92 a share reported for the six months to March 31, 2021.
Further, headline earnings a share are expected to increase by between 130% and 140% to between R13.73 and R14.33, compared with the R5.97 reported for the prior comparable period.
"The above earnings growth is measured against a low base impacted by Covid-19-related lockdowns adversely affecting the South African economy. At the time, Astral Foods’ poultry operations could not recover the then significant increases in feed costs through the selling price of poultry products," the company says.
During the six months under review, the improved earnings were achieved mainly through increased poultry sales volumes, as a result of significant capital investments made to increase Astral’s poultry production and processing capacity, resulting in improved economies of scale benefits throughout the group’s integrated value chain.
The improved earnings also resulted from improved poultry margins, supported by efficiency improvements through the broiler value chain as well as the partial recouping of higher feed raw materials and energy input costs.
Astral will publish its interim results on or about May 16.