ASTRAL FOODS LIMITED - Trading statement

Trading statement

Astral Foods Limited
("Astral Foods")
Registration number: 1978/003194/06
JSE Code: ARL ISIN: ZAE000029757

Trading statement

Further to the voluntary operational update issued on 5 February
2019 which stated that operating profit for the first quarter of
the current financial year which ended on 31 December 2018, was
significant lower than the corresponding period in the previous
financial year, shareholders are now advised as follows:

  •   A reasonable degree of certainty exists that Astral Foods'
      earnings per share for the six months ended 31 March 2019
      will reflect a decrease of between 55% (1 077 cents per
      share) and 50% (979 cents per share) compared to the
      previous comparable period. This implies that earnings per
      share is expected to be between 881 and 979 cents per
      share. The earnings per share for the six months ended 31
      March 2018 has been restated at 1 958 cents per share,
      previously reported as 1 973 cents per share.

  •   Headline earnings per share for the six months ended 31
      March 2019 will reflect a decrease of between 55% (1 077
      cents per share) and 50% (979 cents per share) compared to
      the previous comparable period. This implies that headline
      earnings per share is expected to be between 882 and 980
      cents per share.    The headline earnings per share for the
      six months ended 31 March 2018 has been restated at 1 959
      cents per share, previously reported as 1 974 cents per
      share.

The reduction in profitability was mainly as a result of higher
feed prices and production related cost increases, exacerbated
by lower selling prices for poultry products.

The restatement of the prior year figures relates to certain
sales transactions of goods delivered during September 2017,
initially recognized as revenue for the first half of the prior
year,   whereas  on   re-assessment   of   the  nature of   the
transactions, it was concluded that it should have been
recognized as revenue for the 2017 financial year.

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

It is expected that the results for the six months to 31 March
2019 will be published on SENS on 13 May 2019.

Poor management of municipal infrastructure within the Lekwa
(Standerton) Municipality, particularly water reticulation and
supply which is crucial for a poultry processing plant, has
resulted in unnecessary costs for Astral in the recent past, and
ongoing infrastructural failure is causing a dire situation for
Astral’s operations in the area.

Pretoria

30 April 2019
Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank
Limited

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