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ASTRAL FOODS LIMITED - General trading update

Release Date: 10/10/2019 12:49
Code(s): ARL     PDF:  
 
Wrap Text
General trading update

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

                  GENERAL TRADING UPDATE

Astral Foods’ earnings per share (“EPS”) and headline
earnings per share (“HEPS”) for its 2019 financial year
ended 30 September 2019 (“2019 financial year”) are
expected to be not more than 60% down on the comparative
previous year’s reported results of 3 691 cents per share
for EPS and 3 712 cents per share for HEPS. EPS will be at
least 1 476 cents per share and HEPS at least 1 485 cents
per share for the 2019 financial year.

It must be noted that the previous year’s results were at
a record historical high, benefitting at the time from low
feed costs following a record maize crop for the 2017/2018
marketing year, whilst selling prices for poultry products
were stronger due to the short supply of broilers to the
market following the Avian Influenza outbreak in 2017.

Higher maize prices as a result of a smaller crop during
the 2019 financial year, has led to a material increase in
feed costs for the 2019 financial year which, together with
depressed poultry selling prices, have resulted in
significant pressure on profit margins.

Disappointing consumer spending patterns during Astral
Foods’ 2019 financial year, together with high levels of
poultry imports, resulted in average poultry selling prices
below that of the comparative period.

In addition to the above, Astral Foods had to absorb
additional costs relating to the following:

  - Industrial action at its operations in KwaZulu-Natal
    during the first quarter;
  - Widespread electricity load shedding during the second
    quarter; and
  - Disruption of water supply to the poultry processing
    plant in the Lekwa municipal district (Standerton)
    during the third quarter.

The above information has not been reviewed or reported on
by Astral Foods’ auditors. A further trading statement will
be released once reasonable certainty exists on the range
of the decrease.


Pretoria
10 October 2019
Sponsor:    Nedbank Corporate and Investment Banking, a
division of Nedbank Limited

Date: 10/10/2019 12:49:00
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