Profit growth gives food group cause to crow

by 5m Editor
25 May 2005, at 12:00am

SOUTH AFRICA - Industrial food group Astral Foods has again shown its mettle in delivering consistent growth, increasing operating profit 30% to R246m in the six months to March. Despite the volatility in maize prices and rising chicken imports — which now account for about 10% of SA’s demand, putting local prices under pressure — Astral has consistently outperformed other companies in the industry in the past few years. The group, unbundled from Tiger Brands several years ago, acquired the outstanding 50% stake in poultry business Earlybird last year and established a sound platform from which to deliver future growth. Releasing the interim figures yesterday, CEO Nick Wentzel said chicken consumption was growing about 7% a year as the disposable income of the burgeoning middle class grew. The poultry division remained the major contributor, accounting for 59% of profits. Source: BusinessDay

5m Editor