Astral Foods expects EPS rebound driven by “strong” recovery in H2

Core Viewpoint - Astral Foods anticipates a rebound in earnings per share (EPS) for the full year, driven by a strong recovery in the second half of the fiscal year 2025 [1][2]. Financial Performance - EPS is expected to increase by 7% to 17%, reaching between R20.96 ($1.23) and R22.91, compared to R19.59 from the previous year [1]. - Headline earnings per share (HEPS) are projected to rise by 5% to 15%, estimated between R20.16 and R22.08, compared to R19.20 in the previous financial year [2]. Factors Contributing to Recovery - The recovery in the second half is attributed to increased broiler slaughter numbers and higher poultry sales compared to the previous year [2]. - Improved per-unit production costs due to higher production volumes and a recovery in poultry sales after a period of price deflation [2][3]. - Higher internal feed sales linked to increased broiler production and a year-on-year rise in external feed volumes contributed to the recovery [3]. Operational Insights - Astral Foods focused on rebuilding its balance sheet and successfully restored a targeted surplus cash position throughout the year [3]. - The company plans to publish final results around 17 November [3]. Previous Performance Context - In May, Astral Foods reported a decline in first-half profits due to lower poultry prices and higher feed costs, with revenue rising 3.5% to R10.7 billion ($593.5 million) [4]. - The poultry division's revenue increased by 1.5% to R8.8 billion, but it experienced an operating loss of R26 million, compared to a profit of R284 million the previous year [5].