Astral discusses growth strategies and avian influenza challenges

ASTRAL, the integrated poultry producer that lifted its 2025 dividend by 112% to 1 100 cents per share, plans to maintain a strong balance sheet due to the volatile environment, to fund a large pipeline of capital projects and to even possibly consider acquisitions, CEO Gary Arnold said.

- EDWARD WEST

Speaking in an online presentation on Monday, Arnold said the group staged a good financial recovery in the second half of its year to September 30, after earnings came under pressure in the first half. The group has been on a turnaround path since 2023, when its financial position was badly impacted by load shedding and avian influenza.

He said the group would reach volume production capacity at the end of this month and, “we have a good pipeline of strategic projects, with good returns.”

Apart from investments to build volumes, there were also projects to improve efficiencies. The group slaughtered an average of 5.8 million birds a week during its 2025 year, and investments in refrigeration should see this increase to 6.1 million by the end of November.

“Throughout the year, we focused on rebuilding the balance sheet and ended the financial year with over R1 billion in cash. This was supported by R1.7bn of cash generated from operations. As a result, a final dividend of 880 cents per share was declared,” said CFO Dries Ferreira.