Astral Foods lifts interim dividend as earnings rocket

Poultry producer Astral Foods reported an 11% increase in revenue and a sharp rise in operating profit off a low base as lower feed costs and stronger poultry demand lifted margins across the group.

Headline earnings per share (Heps) for the six months ended 31 March 2026 increased to 2 318 cents, while the interim dividend over the period rose to 1 160 cents.

Listen/Read: Astral Foods enjoys better feed and chicken prices

The group ended the period with a cash balance of R1.15 billion.

At mid-day, Astral’s share price slumped to R227.72 – 3.7% lower than on Friday.

Chief executive Gary Arnold said the group’s interim results were supported by strong demand for poultry, lower feed costs and “great execution of Astral’s best cost strategy”.

Revenue in the poultry division increased 14% to R10.1 billion from R8.8 billion, while revenue in the feed division was more in line with the comparable period at R5.3 billion, even though volumes increased 9.8%.

This was as a result of lower feed selling prices, reflecting reduced raw material input costs, especially for yellow maize.

Astral raised concerns about the conflict in the Middle East, which has resulted in a surge in international oil prices and a global shortage of fertiliser.

Read: SA farms face El Niño drought risk on top of Iran war

These risks, Astral said, are compounded by the developing El Niño weather phenomenon which could cause drought conditions in the coming summer growing season.

Another concern is bird flu, which continues to be a risk to the poultry sector, particularly due to higher infection rates in the Northern Hemisphere during the region’s past winter season.

“However, Astral has made good progress with its vaccination strategy … [and] approximately 30% of breeding stock will protected against the disease in the winter months,” it noted.

The group cautioned that these risks will most likely have a bearing on its near-term business prospects.

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