Avior Capital Markets - Astral Foods Ltd. (110V) Astral Foods | Farming birds right

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Avior Capital Markets

Jiten Bechoo ...

Pratish Soni

Astral Foods | Farming birds right

Astral Foods (ARL) released strong FY '18 results with diluted HEPS up 94% yoy to 1 972cps. The poultry division made a profit of R835m, compared to R22m last year, with a combination of lower costs and higher selling prices. Maize costs are rising into 2018/2019 while poultry prices are in decline. Rising imports and local production have led to a domestic surplus. Competition from cheap pork post Listeriosis is also a threat. ARL are efficient poultry producers, but the current record high poultry margin is unsustainable given price and cost adversities over the next 12m.

10/12/2018 16 EN

Underlying

Astral Foods Ltd.

Astral Foods is a poultry producer. Co. is engaged in manufacturing of animal feeds, broiler genetics, production and sale of day-old chicks and hatching eggs, breeder and broiler production, abattoir and further processing operations and sales and distribution of various key poultry brands. Co. has four broiler production, processing, distribution, sales and marketing operations, which include: Festive (Olifantsfontein), County Fair (Western Cape), Goldi (Standerton) and Mountain Valley (Camperdown). Co. has three operating segments, Poultry, Feed, and Other Africa.

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ZAE000029757 Johannesburg Stock Exchange South Africa

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Avior Capital Markets

Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.

Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.

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Analysts

Jiten Bechoo

Pratish Soni

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Astral Foods | Farming birds right

Astral Foods | Praying for rain

1 director sold

Astral Food | A watershed moment

Tiger Brands | ESG | Pressed to execute

SA Investment Strategy | Review of January 2020 for SA investors: Coronavirus weighs on the ZAR

SA Banks | Low credit risk in commercial property | Time to buy SA banks

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