South African food group Astral Foods on Friday reported a 48% increase in diluted headline earnings per share to 893 cents for the year ended September 30, from 605 cents a year earlier. Headline earnings per share were up 45% to 918 cents from 631 cents previously.
Dividends declared out of profits for the year increased by 65% from 230 cents to 380 cents per share as a result of reducing the dividend cover to 2,4 times compared with last year’s 2,7 times.
A dividend of 260 cents per ordinary share has been declared in respect of the financial year ended September 30 2005.
Revenue was 14% higher at R4,602-billion, while attributable profit was 50% better at R394,9-million.
The group reported good operating performances from both the poultry and animal-nutrition businesses. The increased revenue was mainly due to the acquisition of the remaining 50% of Earlybird in September last year.
Operating profit for the period increased by 47% to R572-million, including R15-million profit on the sale of poultry properties due to urban encroachment. Poultry continues to be the main profit contributor with R367-million — or 64% — while animal nutrition contributed R205-million, or 36%.
Strong cash generation resulted in a net cash inflow of R351-million compared with a net outflow of R177-million in 2004 following the Earlybird acquisition for R262-million.
Looking ahead, the group said continued low maize prices, increased disposable income in the hands of consumers and a continued balanced supply and demand for poultry should positively influence the results for the year ahead. — I-Net Bridge