Astral Foods posted a 38% fall in full-year earnings per share and said on Friday it expected improved earnings in 2009.
Higher costs squeezed poultry margins severely, but Astral Foods said in a statement it expected to deliver improved earnings in 2009.
”Due to the global economic crisis together with forecast normal summer weather season, prices of agricultural commodities have already eased. This, together with lower imports of poultry products, should result in improved earnings for next year,” it said in a statement.
EPS fell to 858 cents and operating profit fell 32% to R548-million as operating margin dropped to 6,7% from 12,8% the previous year.
The company said cash from operating activities increased 43% to R639-million. It added that revenue was up by 29% to R8,18-billion.
Astral Foods’ poultry unit reported a 16% increase in revenue to R5,1-billion, while its operating profit was down by 66% to R163-million.
But its animal nutrition unit improved revenue by 46% to R5,13-billion and the company said this was boosted by high agricultural input commodities prices.
Animal nutrition unit’s operating profit rose 16% to R385-million, while margins came under pressure. – Reuters