For different reasons, the leading poultry meat companies in South Africa and Australia, respectively, Astral Foods and Inghams Group, have issued trading statements ahead of the publication of their upcoming financial results.
In the latest six-month period, per-share earnings are expected to be down around 50%, Astral Foods has warned.
Companies listed on the Johannesburg Stock Exchange in South Africa are required to make public any developments that are likely to results in a deviation of 20% or more in their financial results with the comparable period.
For the six months to March 24, 2025, the South Africa-based chicken company says Earnings per Share will decrease 45-55% compared with the same period of 2024, and that Headline Earnings per Share could be down around 50-60% year-on-year.
The company’s results for the first half of 2025 are scheduled to be published on May 19.
In a voluntary trading statement released at the end of March, Astral Foods reported that its margins were coming under extreme pressure. Not only was consumer spending constrained in South Africa, but promotion of competing products — such as frozen chicken — had further eroded prices for the firm’s products. Exacerbating this situation were feed costs, which were driven up by adverse weather conditions for growing crops in 2024, particularly for corn.
Adding to these challenges for Astral Foods was a cybersecurity attack in mid-March.
The firm reports that this incident reduced its profit during the half-year reporting period by around 20 million rand (ZAR; US$1.1 million). Although appropriate protocols and planning were in place, and the incident was of short duration, production by its Poultry Division was interrupted. This led to lost revenue, and additional costs to clear the production backlog.
Within a few days, Astral Foods reported that all its businesses were operating normally. It also confirmed its data and records had not been compromised.
Inghams Group reports partial production recovery
Oceania’s leading poultry producer Inghams Group has confirmed that its poultry meat production for the 2025 fiscal year is likely to be 1-3% lower than in the previous 12 months. This reduction in volume was expected following previously announced contractual changes.
For the first nine months, output was down 2.2% year-on-year, while the average net selling price was up by 1.2%.
“We have successfully navigated the changes to our customer portfolio, with the reduction in volume under the new Woolworths supply agreement now substantially covered on an annualized basis,” said Andrew Reeves, Inghams’ CEO and managing director. “The new business commences at various points during the second half of FY25. With a more diversified customer base, the business is well positioned to return to growth moving forward.”
The firm needed to adjust production levels following major changes to the supply agreement with its leading customer, Woolworths.
Offsetting some sales contraction via wholesale, exports, and quick-service restaurant (QSR) channels, the company reports a 2.4% increase in retail sales for the first three quarters of the current financial year.
While core poultry production by the group’s operations in Australia was 3.4% lower year-on-year, output from its New Zealand subsidiary increased by 5.5%. In both countries, net selling prices were improved compared with the same period of 2024.
For the full year, Inghams Group is forecasting its operating profit (Earnings Before Interest, Taxes, Depreciation, and Amortization; EBITDA) will be in the range AUD236-250 million (US$152-162 million).
More on Astral Foods, Inghams Group
With chicken production of around 257 million birds per year, Astral Foods leads the rankings of Africa’s largest poultry meat companies, according to the WATTPoultry.com’s Top Poultry Companies survey for 2023. At 229 million birds, Inghams Group produces the most poultry (chickens and turkeys) in Oceania.
For the 2024 financial year, Astral Foods reported a return to profitability following a challenging period over the previous 12 months.
Inghams Group delivered strong half-year results for the current year.
In recent months, the company appointed a new chief executive for its New Zealand operations. In Australia, chicken from one of its businesses in Tasmania is the state’s first to earn carbon-neutral status.
