Astral Foods (ARL) H2 2025 earnings summary

Executive summary

• Revenue increased 10.4% year-on-year to R22.6 billion, with profits up 16.4% to R876 million and headline earnings per share up 14.2% to 2,193 cents.

• Cash generated from operations reached R1,677 million, with year-end cash exceeding R1 billion and a final dividend of 880 cents per share at 2x cover.

• The year saw a significant turnaround in the second half, with broiler margins recovering from -1.1% to 3.9% and production efficiencies at all-time highs.

• Project 3R (Re-set, Re-start, Re-focus) and industry consolidation drove operational improvements and volume growth.

• Insurance recoveries in the prior year affected profit comparability; 2025 earnings quality improved as these were non-recurring.

Financial highlights

• Operating profit margin held steady at 5.5%, with improved earnings quality and a stronger balance sheet.

• Net finance costs dropped from ZAR 138 million to ZAR 55 million.

• Profit before tax rose 18% to ZAR 1.2 billion; profit from continuing operations up 16.4% to ZAR 876 million.

• Headline earnings per share increased 14.2% to 2,193 cents; earnings per share up 16.2% to 2,276 cents.

• Capital expenditure normalized at R336 million, with net cash at year-end of R1,013 million.

Outlook and guidance

• Favorable maize and soybean prices expected to continue, supporting input costs and margins.

• Bird flu remains the top risk, with slow vaccination progress and ongoing outbreaks; recent permits allow vaccination of up to 30% of breeding stock.

• Economic growth outlook remains subdued, with high unemployment and pressure on consumer disposable income.

• Expiry of AGOA and new US tariffs expected to negatively impact the sector.

• The company will continue to focus on cost leadership, efficiency, and strategic capital investment.