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Astral Foods dil HEPS down 44% to 443c
Poultry producer Astral Foods (ARL) today, 11 November 2013, reported a sharp drop in annual profits‚ as a result of severe losses from its poultry division.
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Headline earnings per share for the full year ended September 30 slumped 44% to 443c from 787c per share a year ago. The group said losses incurred in its poultry segment amounted to R109m from a profit of R137m in September 2012‚ due to higher feed costs‚ with gains from the marginal rise in poultry selling prices providing little respite.
Operating profit consequently fell by 43.1% to R272m with the operating profit margin at 3.2 %‚ down from 5.8% the previous 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.
The company said its African division faired better during the period with operating profit from this segment swelling as a result of higher volumes. Astral feed division also registered gains‚ with revenue rising by 13.6% to R4.9bn from R4.3bn in 2012.
Astral said the recently approved increase in the general rate of duty on poultry imports would go some way in levelling the playing field on a cost basis. While the antidumping application against the European Union‚ if successful‚ would improve the imbalance in supply and demand‚ which could provide a better chance of recovering escalating input costs.
It expected lower feed costs for the first half of 2014‚ which together with the commissioning of the new Standerton feed mill during the latter half of 2014‚ would benefit downstream poultry production costs.
The board had approved a final dividend of 222c per ordinary share.
Source: I-Net Bridge
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