Poultry producer Astral Foods expects its full-year earnings to rise as much as 15% as poultry sales and cost efficiencies lift performance.
In a trading statement on Wednesday, the company said headline earnings per share (HEPS) were expected to rise between 5% and 15% to between 2,016c and 2,208c in the year ended September.
This performance was driven by an improved second half, supported by increased broiler slaughter numbers and poultry sales, better per-unit production costs due to higher volumes and improved poultry sales following a period of deflation, it said.
Higher internal and external feed sales, effective procurement of raw materials in a volatile market and enhanced poultry farming that lowered feeding costs also helped lift performance.
“Throughout the year, the group remained focused on rebuilding its balance sheet, successfully restoring a targeted surplus cash position,” it said.
Shares in the company were down 0.49% in early morning trade but are up 20% for the year to date.
A constrained consumer environment and extensive retail promotional activity on frozen chicken had put pressure on selling prices for the first half to end-March, it said previously.
The group will publish its full-year results on November 17.
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