Astral Foods Limited. JSE: ARL

Astral shares

Background of Astral Foods

  • Astral Foods was founded and listed on the Johannesburg Stock Exchange (JSE) in 2001, after Tiger Brands unbundled its agricultural enterprises. Today, Astral Foods is one of the Top 100 JSE-listed companies, boasting over 4 000 shareholders.

  • The company is a market leading South African integrated poultry producer, with key activities consisting animal feed manufacturing, broiler genetics, production and sale of day-old chicks. Recognised brands under Astral’s control include Goldi, Mountain Valley, County Fair, Festive, National Chicks, Ross Poultry and Meadow Feeds. The company’s farms have a combined total of approximately 40.7 million birds, while 1.5 million tonnes of animal feed are produced annually at Astral’s seven mills.

  • Astral’s four broiler production, processing, sales and distribution operations have a combined processing capacity of more than 4 million processed broilers per week, producing frozen chicken products and value-added products.

  • Astral employs in excess of 11 000 full-time and contract employees, at operations strategically located across South Africa, Swaziland, Mozambique and Zambia.

  • Our operations are strategically located in South Africa as well as surrounding Southern African regions. Poultry Operations are located in South Africa, Mozambique, Swaziland and Zambia whilst our Feed Mills are situated in South Africa, Mozambique and Zambia.

Astral Foods Shares Growth Driver

  • 2015 was recognised as the best ever year in Astral’s history, with before-tax profits exceeding R 1.1 billion for the first time. The financial data registered a record performance across both the poultry and feed divisions. Astral share prices showed remarkable gains of 128% per share.

  • The year was focused on nailing down major capital expenditure projects and acquisitions made in 2014, which included a new feed mill in Standerton, expansions to the County Fair processing plant in the Western Cape, the Argyle day-old chick hatchery and broiler farms in KZN, and a conversion from LPG to coal-fired broilers at County Fair. These new projects all delivered exceptional return on investment.

  • Profit growth was driven by higher broiler volumes, higher consumer demand and pricing, well-managed raw material, maize procurement, and well-managed, more efficient operations. Lower feed costs and an increase in poultry sales were also a major factor in the year’s success.

  • Astral has established itself as the “Big Bird” of the local poultry sector, implementing successful cost integrated strategies, selective acquisitions and continuing expansion of its activities.

Astral Foods Group Investor Tip

  • Threats to Astral Foods include slowing economic growth and higher unemployment, which will most likely hinder an increase in per capita poultry consumption, whilst the current El Nino conditions will impact crop yields, leading to higher feed prices.

  • The poultry sector will most likely suffer losses in terms of small to mid capacity producers, which will reduce industry competition to the benefit of large producers such as Astral.

  • Astral share prices have been on the rise in 2016, and investment analysts forecast that the company will outperform the market. Analysts covering Astral Foods have advised investors to purchase equity in the company.

Astral Foods Major Shareholders

Government Employees Pension Fund, Allan Gray Balanced Fund, Astral Operations Ltd, Investec Fund Management SA (RF) (Pty) Ltd., Investec Opportunity Fund and Investment Solutions.

  • Sector

    Consumer Staples

  • Industry

    Consumer Products
  • Sub industry

    Agricultural Products

How to buy Astral Foods Group Shares

  • Astral Foods : How to buy Astral Foods Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Astral Foods Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Astral Foods Holdings and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Astral Foods Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Astral Foods.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
  • Buy Shares with Confidence

    Buying JSE shares has never been this convenient and easy. #myfirstshare

    View more JSE shares for sale – here.

Summary
Review Date
Reviewed Item
Astral Foods
Author Rating
51star1star1star1star1star