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April 29, 2021updated 11 May 2021 7:20pm

South Africa’s Astral Foods issues update to profit warning

By Andy Coyne

Astral Foods, the South Africa-based poultry processor, has released an update on the profit warning it issued last month, blaming rising input costs for the likely hit on its earnings.

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However, the outlook is marginally improved from last month’s warning.

In a trading statement issued yesterday (28 April) on the Johannesburg Stock Exchange, on which its listed, Astral said it expects half-year profits to fall by more than a third.

It blamed the rising price of soybeans and maize as well as a fall in disposable income amongst consumers.

The update comes just over a month after Astral Foods issued a first-half profit warning, saying it was continuing to struggle with the impact from the Covid-19 pandemic.

Then, Astral said it expected that earnings per share and headline earnings per share were both likely to be down by a maximum of 45% in the six months to 31 March from the corresponding period a year earlier.

In its newly-issued update, the company said a “degree of certainty” now exists and earnings per share and headline earnings per share are expected to decrease between 35% and 40% compared to the previous comparable period.

Astral’s half-year results are due to be published on 17 May.

In the six months to 31 March 2020, the group recorded profits before interest and tax of ZAR545.8m (US$38.3m).

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  • The key drivers and challenges impacting the digital lifestyles trend
  • A spotlight on key innovations set to reshape the consumer landscape
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