|
|
|
Fri 29 May 2026
Close: 999c 
Day's move: 0c (0.00%)
Volume: 0
Trades: 0
|
|
|
|
Revenue for the interim period lowered to R3.4 billion (R3.6 billion) whilst gross profit improved to R765.6 million (R713.5 million). Operating profit was higher at R241.1 million (R204.5 million). Profit for the year attributable to owners increased to R183.7 million (R150.1 million). Furthermore, headline earnings per share rose to 86.5 cents per share (74.8 cents per share).
Dividend
The board of directors of the Company has resolved to declare an interim gross cash dividend of 22.0 cents per share for the six-month period ended
31 March 2026 from income reserves (HY2025: nil cents).
Company outlook
The ongoing conflict in the Middle East and its adverse impact on global supply chains, particularly in relation to costs, are expected to result in a significantly more challenging second half of FY2026. This is primarily due to the impact of higher fuel costs, not only on the Company’s cost structure but also on the disposable income of consumers.
Feed input costs, excluding the immediate impact of higher fuel costs and medium-term impact of increased fertiliser costs, are expected to remain relatively low in the short term, supported by sufficient grain availability and stable international commodity prices.
Egg selling prices in South Africa are expected to remain under pressure, as the national flock levels remain elevated. Changes in feed raw material costs directly affect earnings derived from the Group’s egg business.
Earnings from the feeds and farming businesses are more resilient to changes in feed raw material costs, as changes in input costs generally drive selling price adjustments in these businesses. Earnings from the feeds and farming businesses are more dependent on volumes, operational efficiencies and cost management, which could be significantly impacted by any HPAI outbreak. The risk of HPAI outbreaks remains high, both locally and internationally, and continues to represent a significant operational risk to the poultry industry. Discussions between the industry and the South African government have not yet resulted in commercially feasible HPAI vaccination administration protocols for producers. In the absence of vaccination, HPAI will remain a key risk factor affecting poultry businesses going forward, resulting in major uncertainty that could severely impact earnings for the industry. The Group continues to mitigate this risk through geographic diversification, biosecurity protocols and disciplined placement strategies.
The expected absence of load shedding in South Africa during the second half of FY2026 is very positive, especially from an operating cost perspective.
Performance in Zambia is expected to remain stable. Improved feed input costs resulting from an expected large grain crop harvest, and lower load shedding following improved hydro-electrical generation output, are expected to mitigate the impact of the decrease in egg selling prices that started towards the end of the current reporting period.
Performance in Uganda was strong in the current reporting period. Repeating this performance in the second half of the year will be challenging, with the expectation of higher feed input costs and disruption to planned hatching egg import logistics related to the ongoing conflict in the Middle East.
The environment in Mozambique is expected to remain challenging during the second half of FY2026, with egg selling prices continuing to be under pressure due to high layer flock numbers in South Africa.
|
| |
| Click here for Results In Brief |
| |
| Click here for Results Analysis |
| Closing price data source: JSE Ltd. All other statistics calculated by ProfileData. |
|
|
