Astral slashes interim dividend as earnings fall
Feed price and production cost increases could not be recovered by increasing sales due to consumers’ inability to absorb price increases, company says
Poultry producer Astral Foods has cut its interim dividend by more than half after higher costs and lower selling prices dented profits. “Feed price and production cost increases could not be recovered by increasing sales realisations due to the consumer market not being able to absorb price increases,” Astral said. The company said on Monday it will pay an interim dividend of R4.75 a share, versus R10 a year before. While revenues in the six months to end-March edged up 3% to R6.8bn, higher sales costs and distribution expenses caused headline earnings to fall 52% to R368m, Astral said.
The group said poultry imports remain high, equating to about 38% of local production, or an average of 41,771 tons a month. “Higher local poultry production levels together with imports from Brazil and the US will negatively impact the supply and demand balance in the short term,” it said. Astral, led by CEO Chris Schutte, said its near-term prospects “can be regarded as a mixed bag”...
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