Astral Foods Limited

Astral reported full-year revenue up 10%, profits up 11% to just under ZAR 1.3 billion, headline earnings up 14% to ZAR 21.93, and cash generated from operations of ZAR 1.7 billion, up 20%. Johan Andries Ferreira said operating profit margin was 5.5%, profit before tax was ZAR 1.2 billion, profit from continuing operations was ZAR 876 million, earnings per share was ZAR 22.76, and headline earnings per share was ZAR 21.93. Year-end cash was ZAR 1.013 billion, compared with ZAR 13 million a year earlier. Full-year dividend was ZAR 11 a share, including a final dividend of ZAR 8.80. Looking ahead, management did not give formal numerical guidance, but said production will be around 6 million broilers a week by month-end, capital expenditure is expected to rise as investment programs restart, and favorable maize prices should support feed costs if weather stays supportive.

Gary Arnold framed the year as a clear “tale of two halves,” with the business recovering from weak first-half margins into a much stronger second half as selling prices improved and feed costs moderated. He emphasized Project 3R, the focus on being the best-cost producer, and the importance of maintaining discipline on production, procurement, and working capital. His tone was upbeat but measured, with repeated reminders that poultry remains volatile and that the company must stay focused on cost control and scale.

Johan Andries Ferreira highlighted the improved quality of earnings and balance sheet. He said operating profit margin held at 5.5%, finance charges fell sharply from ZAR 138 million to ZAR 55 million, and net cash improved to ZAR 1.013 billion from ZAR 13 million a year earlier. He also pointed to a 13% increase in NAV to ZAR 5.375 billion, CapEx of ZAR 336 million, and lower poultry inventory that helped reduce net working capital by ZAR 262 million. He noted that the business returned ZAR 285 million in dividends during the year and that the current capex pipeline includes refrigeration upgrades and hatchery expansion.

Analysts focused on whether second-half sales growth was driven by a competitor closing or by better consumer demand, and management said both industry consolidation and stronger demand for chicken helped, with beef price spikes from foot-and-mouth disease also supporting poultry volumes. On pricing, Gary Arnold said the company recovered selling prices in the second half after a very weak 2024 market, and he advised using SAPA average selling prices rather than the FNB data for tracking poultry pricing. Questions on special dividends were met cautiously: management said the balance sheet rebuild is complete, but there are still many attractive projects and the Board is not looking to pay out special dividends soon. On 2026 volumes, management declined to give a numeric target, saying output will depend on market demand, with the key goal to sell what it produces rather than build freezer stock.