Astral Foods (ARL) H1 2026 earnings summary

Executive summary

• Revenue for the six months ended 31 March 2026 rose 11.4% year-over-year to R11.94 billion, marking the best performance in 25 years since JSE listing, driven by higher sales volumes and improved realisations in the Poultry Division.

• Operating profit surged to R1.214 billion from R271 million, with net operating margin increasing to 10.2% from 2.5% in the prior year period.

• Net profit attributable to shareholders increased 392.6% year-over-year to R895.5 million.

• Headline earnings per share rose to 2,318 cents (ZAR 23.18), up 467% year-over-year.

• Interim dividend declared at 1,160 cents per share, exceeding last year’s full-year payout.

Financial highlights

• Revenue increased to R11.94 billion from R10.7 billion year-over-year.

• Operating profit margin improved to 10.2% from 2.5% in the prior year.

• Cash balance increased to R1.152 billion as of 31 March 2026, up from R1.01 billion.

• Capital expenditure for the period was R205 million, with total commitments at R317 million.

• Net working capital rose to R2.4 billion, reflecting inventory rebuild and higher receivables.

Outlook and guidance

• Bird flu remains a significant risk, especially with higher infection rates in the Northern Hemisphere.

• Near-term input costs for poultry feed expected to remain stable due to a record maize and oilseed crop and well-covered procurement positions.

• No plans to reduce broiler volumes; focus remains on growth, capacity expansion, and continued investment in manufacturing.

• Risks include bird flu, fuel and fertilizer price volatility, El Niño, drought, and regulatory changes, but management is confident in mitigation strategies.

• No special dividend or share buyback planned; cash prioritized for CapEx and strategic investments.