Astral raises earnings forecast despite lower chicken sales
The poultry producer says coming results will show doubled earnings
Chicken producer Astral’s share price rose as much as 5.8% to R193.14 on Wednesday after saying its earnings growth would be even better than previously forecast. Astral said it expected to report that its headline earnings per share (HEPS) for the year to end-September would be about double the prior year’s R18.99, on November 19. Wednesday’s statement updated a forecast Astral issued on September 19 in which it said HEPS would be at least 85% higher than in its 2017 financial year. In September’s statement, Astral warned that its improved profitability was not thanks to better chicken sales; the prior year’s results had been reduced by R15m finance costs. Astral said in September, “Increases in the fuel price and the VAT rate have had a negative impact on the consumer, with current trading conditions not as favourable as in the corresponding reporting period of the previous year.” laingr@businesslive.co.za
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