Cape Town — South Africa’s biggest poultry producer, Astral Foods, says it will return to profitability in the half-year by 31 March as the company looks to recover from the impact of the devastating bird flu outbreak.
Astral expects its headline earnings per share (HEPS) to grow by more than 300% to 654c in the period until 31 March, compared to 163c in the same period last year. In the year ended September 30, Astral posted an astronomical operating loss of R621m, the first in their 23 years of existence, an Astral statement said.
Their losses were mainly due to the costs associated with the outbreak of the high-pathogenic avian influenza (HPAI), a bird flu that spreads rapidly in an infected flock of birds, causing a high death rate, as well as diesel costs to provide alternative power amid the country’s ongoing electricity crisis, TimesLIVE reported.
The company said, while diesel costs remain high, the company has cut costs after the easing of power cuts, while feeding costs have also come down due to lower commodity prices. They still face water and electricity disruptions, and the importing of broiler hatching eggs, has also contributed to rising costs.
The company said it was “dismayed” by the International Trade Administration Commission of South Africa’s decision to lift punitive tariffs on poultry imports, saying there was no shortage of chicken products to justify the move.
South Africa’s poultry producers say the move to allow more chicken imports into the country will hurt a sector battling to recover from the avian flu outbreak, an electricity crisis and higher input costs.
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Compiled by Matthew Petersen
