Astral Foods earnings down 44% to 443c

Astral Foods says its results were down because of a poor performance in the poultry division. Image: Astral Foods

Headline earnings per share for the full year to September slumped 44% from 787c per share last year to just 443c. The group said losses incurred in its poultry division dropped to R109m from a profits of R137m in September last year. Operating profit fell by 43.1% to R272m and the operating profit margin was at 3.2 %‚ down from 5.8% last year.

Profit before tax‚ which includes a profit of R79‚4m following the sale of 50% of the interest in a joint venture‚ was 34% lower at R327m. A final dividend of 222c per ordinary share was declared.

The company said its African division fared better during the period with its operating profit swelling as a result of higher volumes. Astra's feed division also registered gains‚ with revenue rising by 13.6% from R4,3bn to R4.9bn.

Astral said the recently approved increase in the general rate of duty on poultry imports would go some way towards levelling the playing fields on a cost basis. Astral said the anti-dumping application, if successful, against the European Union would improve the imbalance in supply and demand‚ which could provide a better chance of recovering escalating input costs.

It expected lower feed costs to apply during the first half of 2014‚ which together with the commissioning of the new Standerton feed mill later next year‚ would lower poultry production costs.