ASTRAL FOODS LIMITED - Trading statement

Trading statement

ASTRAL FOODS LIMITED
“Astral Foods” or “the Group”
(Reg. No. 1978/003194/06)
(Incorporated in the Republic of South Africa)
Share Code: ARL
ISIN Code: ZAE000029757


TRADING STATEMENT

The general trading update published on SENS on 2 February
2022, indicated expected increases in earnings per share
and headline earnings per share for the six months ended
31 March 2022 of at least 100% higher than the previous
comparable six months ended 31 March 2021. Shareholders are
now advised that a reasonable degree of certainty exists
that for the six months ended 31 March 2022:

  •   Earnings per share is expected to increase between
      140% (829 cents per share) and 150% (888 cents per
      share) compared to the previous comparable period.
      This implies that earnings per share is expected to
      be between 1 421 and 1 480 cents per share (31 March
      2021:592 cents per share); and

  •   Headline earnings per share is expected to increase
      between 130% (776 cents per share) and 140% (836 cents
      per share) compared to the previous comparable period.
      This implies that headline earnings per share is
      expected to be between 1 373 cents and 1 433 cents per
      share (31 March 2021: 597 cents per share).

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.

During the six months period ended 31 March 2022 the
improved earnings were achieved mainly through:

  •   increased poultry sales volumes, as a result of
      significant capital investments made to increase
      Astral Foods’ poultry production and processing
      capacity, resulting in improved economies of scale
      benefits throughout the Group’s integrated value
      chain; and

  •   improved poultry margins, supported by efficiency
      improvements through the broiler value chain as well
     as the partial recoupment of higher feed raw materials
     and energy input costs.

The financial information on which this trading statement
is based has not been reviewed or reported on by Astral
Foods’ auditor.

It is expected that the results for the six months ended
31 March 2022 will be published on SENS on or about Monday,
16 May 2022.


Pretoria
25 April 2022

Sponsor:    Nedbank Corporate and Investment Banking, a
division of Nedbank Limited

Date: 25-04-2022 08:00:00
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