January 26, 2023

South African poultry processor Astral Foods expects 90% plunge in mid-year profit

Astral Foods, one of South Africa's largest poultry companies, said it expects a 90% drop in mid-year profits due to rolling power cuts in the country that have affected production and increased input costs, IOL reported.

The company produces 6 million chickens weekly and accounts for one quarter of South Africa's broiler meat output.

The business supplies wholesale, retail, and significant national fast-food chains with chicken meat.

It anticipates a decline in headline earnings per share (HEPS), the primary profit indicator in South Africa.

Astral Foods said through the first quarter of 2023, the load shedding by Eskom caused significant operational disruptions in the poultry division. This has persisted, resulting in unusually high additional costs and significant production reductions of at least 12 million broiler placements for the first half of 2023.

-      IOL