Astral Foods, South Africa’s largest integrated poultry producer, has posted a solid financial rebound for the year ending 30 September 2025, recording an 11% rise in profit after a turbulent period marked by escalating input costs, disease pressures and market uncertainty. Revenue climbed to R22.6 billion from R20.5 billion the previous year, underscoring firm market demand and the group’s renewed operational stability.
The Poultry Division — the backbone of Astral’s business — was the standout performer. Accounting for roughly 82.5% of group external revenue, the division benefitted from higher broiler slaughter volumes, supported by improved efficiencies across the production chain. A strong second half proved pivotal, as selling prices recovered from earlier deflationary trends, helping to offset cost inflation experienced earlier in the year. These combined effects enabled the poultry business to regain momentum and significantly bolster group earnings.
Astral’s Feed Division also delivered positive results. As a major supplier of animal feed in South Africa, the division saw sustained demand from internal operations and a rising external customer base. Increased feed consumption — driven by higher poultry production — supported revenue growth and reinforced the division’s role in stabilising the broader poultry value chain at a time when high raw material prices remain a challenge.
Group profitability strengthened markedly. Operating profit rose to R1.25 billion, a year-on-year increase of 10.9%. When excluding the previous year’s once-off insurance proceeds, underlying operating profit surged by nearly 43%, reflecting tighter cost management, more efficient planning and the easing of certain input costs during the year.
Cash flow was another highlight. Astral generated R1.7 billion in cash from operations, ending the year with more than R1 billion in cash reserves. This bolstered liquidity aligns with the group’s strategy of fortifying its balance sheet and enhancing its capacity to fund future expansion. With a stronger cash position, Astral is better equipped to absorb operational shocks and capitalise on growth opportunities.
The company’s strengthened outlook was further demonstrated through a substantial dividend declaration. Astral announced a final dividend of 880 cents per share, bringing the total dividend for the year to 1,100 cents — a remarkable 112% increase from the previous year. This underscores management’s confidence in the recovery and its commitment to shareholder value.
Despite the improved performance, notable challenges persist. Water disruptions across several facilities continue to impose significant costs, with Astral spending approximately R10 million per month on diesel to haul water due to ongoing municipal service failures. Avian influenza also remains a major threat: even with progress in vaccine approvals, a considerable portion of breeding stock remains exposed, creating potential risks for production continuity.
Looking ahead, Astral Foods plans to expand capacity, strengthen biosecurity, and drive further operational efficiencies. Successfully navigating infrastructure failures and disease-related risks will be critical. If achieved, Astral will remain well-positioned to sustain its growth trajectory and reinforce its leadership in South Africa’s poultry industry.
