Biggest producer of South Africa’s favourite protein flying high

Astral has reported exceptionally strong results for the first half of its 2026 financial year, which saw the poultry producer more than quadruple its earnings.

The company’s interim results were aided by a low comparative base, improved margins in its poultry division, lower costs, and improved operational efficiencies.

On Monday, 18 May, Astral released its results for the six months through March 2026, which revealed a strong performance.

The group’s revenue rose by 11.4% to R11.94 billion, while its cost of sales decreased by 0.6% to R9.11 billion.

This allowed the group’s profit for the six months to grow by 392.6% to R895.54 million.

Its earnings per share grew by 391.7% to 2,321 cents, while its headline earnings per share rose by 466.7% to 2,318 cents.

Astral acknowledged that its results benefited from a lower base, with the first half of its 2025 financial year marked by lower selling prices and higher input costs.

In contrast, the first half of the 2026 financial year benefited from lower poultry feed costs, disciplined cost management, and improved operational efficiencies through Astral’s poultry processing plants. 

As a result, the group’s net operating profit margin increased to 10.2%, up from 2.5% in the comparable period.

Both Astral’s Feed and Poultry divisions reported strong growth for the six-month period, recording margin and profit improvements.

The Feed Division saw total feed volumes up 9.8%, supported by strong internal demand, which was, in turn, boosted by higher broiler production volumes.

This division’s operating profit increased by 23.3% to R366 million, aided by effective cost management and improved margins.

Similarly, Astral’s Poultry Division saw its revenue up 14% to R10.1 billion, resulting from strong demand for its products.

This division benefited from a particularly low comparative base, having made an operating loss in the first half of the 2025 financial year.

Now, the division reported an operating profit of R848 million, compared to a loss of R26 million, driven by optimising broiler production capacity and enhanced operational efficiencies.

Looking forward, Astral said some risks remain, including the ever-present threat of bird flu, as well as the Iran war and resulting surge in fuel and fertiliser prices.

However, there are also some positive developments, including the fact that South Africa is set for a record grain and oilseed harvest, the company’s bird flu vaccination programme, and its healthy balance sheet.

On the back of these strong results and relatively positive outlook, Astral declared an interim dividend of 1,160 cents per share.