|
ARL
ARL
Astral Foods Limited - Unaudited Interim Results and Dividend Declaration for
the six months ended 31 March 2006
Astral Foods Limited
("Astral Foods")
Registration number: 1978/003194/06
JSE Code: ARL & ISIN: ZAE000029757
Unaudited Interim Results and Dividend Declaration for the six months ended 31
March 2006
Operating profit increase 54%
Headline earnings per share increase 60%
Interim dividend increase 88%
Condensed Income Statement
Restated Restated
Unaudited Unaudited Unaudited
6 months 6 months 12 months
ended ended ended
31 March 31 March 30 Sept
Change 2006 2005 2005
% R"000 R"000 R"000
Revenue 4 2 432 759 2 331 298 4 613 287
Operating profit (note 54 414 445 268 318 596 709
4)
Net interest 2 381 (7 948) (11 323)
received/(paid)
Profit before income 60 416 826 260 370 585 386
tax
Income tax expense for (135 524) (78 179) (169 852)
the period
Profit for the period 54 281 302 182 191 415 534
Attributable to:
Minority interests 59 3 256 2 050 5 292
Equity holders of the 54 278 046 180 141 410 242
company
Earnings per share
(cents)
- basic 60 693 432 989
- diluted 63 674 413 961
Additional Information
Headline earnings 54 277 551 179 906 397 466
(R"000)
Headline earnings per
share (cents)
- basic 60 692 432 958
- diluted 63 673 412 932
Dividend per share
(cents)
- declared out of
earnings
for the period 88 225 120 380
Ordinary shares
- Issued net of 39 632 41 516 40 569
treasury shares 174 365 574
- Weighted-average 40 128 41 653 41 482
845 141 050
- Diluted weighted- 41 239 43 636 42 668 76
average 073 513
Condensed Balance Sheet
Restated Restated
Unaudited Unaudited Unaudited
6 months 6 months 12 months
ended ended ended
31 March 31 March 30 Sept
2006 2005 2005
R"000 R"000 R"000
Assets
Non-current assets 1 031 974 887 478 977 606
Property, plant and equipment 889 989 748 585 833 477
Goodwill 123 548 121 053 123 548
Intangible assets 16 130 11 053 17 434
Investments and loans 2 307 6 787 2 284
Deferred income tax assets - - 863
Current assets 943 138 883 348 918 307
Inventories 190 630 172 904 155 200
Biological assets 193 438 207 548 198 474
Trade and other receivables 486 358 465 531 499 100
Cash and cash equivalents 72 712 37 365 65 533
Total assets 1 975 112 1 770 826 1 895 913
Equity and liabilities
Capital and reserves 1 081 070 919 614 983 192
Issued capital 206 697 258 004 253 765
Reserves 857 062 643 992 712 838
Equity holders of the 1 063 759 901 996 966 603
company"s interest
Minority interests 17 311 17 618 16 589
Non-current liabilities 229 475 226 315 209 278
Long-term liabilities 10 239 1 720 1 759
Deferred income tax liability 156 897 163 098 146 095
Post-employment medical aid 62 339 61 497 61 424
obligations
Current liabilities 664 567 624 897 703 443
Trade and other liabilities 635 785 549 113 642 254
Current income tax liabilities 25 901 913 58 965
Short-term borrowings 2 881 74 871 2 224
Total equity and liabilities 1 975 112 1 770 826 1 895 913
Net cash/(debt) 59 592 (39 226) 61 550
Condensed Cash Flow Statement
Restated Restated
Unaudited Unaudited Unaudited
6 months 6 months 12 months
ended ended ended
31 March 31 March 30 Sept
2006 2005 2005
R"000 R"000 R"000
Cash operating profit 458 657 302 930 659 817
Working capital changes (24 187) 86 955 170 466
Cash flows from operating 434 470 389 885 830 283
activities
Interest received/(paid) 2 381 (7 948) (11 323)
Tax paid (157 670) (141 892) (196 055)
Net cash generated from 279 181 240 045 622 905
operating activities
Net cash outflow to investing (97 769) (42 272) (154 863)
activities
Net cash inflow for the period 181 412 197 773 468 042
Shares issued 921 1 324 8 209
Buy-back of shares (79 434) (17 379) (140 675)
Dividends paid (106 291) (64 915) (117 180)
- own equity (103 757) (64 015) (112 009)
- minorities (2 534) (900) (5 171)
Increase/(decrease) in 9 137 (124 971) (197 624)
borrowings
Net increase/(decrease) in 5 745 (8 168) 20 772
cash and cash equivalents
Effects of exchange rate 1 434 252 (520)
changes
Cash and cash equivalent 65 533 45 281 45 281
balances at beginning of year
Cash and cash equivalent 72 712 37 365 65 533
balances at end of period
Condensed Statement of Changes in Equity
Restated Restated
Unaudited Unaudited Unaudited
6 months 6 months 12 months
ended ended ended
31 March 31 March 30 Sept
2006 2005 2005
R"000 R"000 R"000
Balance beginning of year as 915 371 764 828 764 828
previously stated
Revised depreciation on 61 280 46 642 46 642
property, plant and equipment
Full consolidation of 6 541 5 908 5 908
partnership
Restated balance beginning of 983 192 817 378 817 378
year
Profit for the period 281 302 182 191 415 534
Movement in currency 1 446 917 19
translation difference during
the period
Dividends paid during the (106 357) (63 917) (117 273)
period
Decrease in equity as result (79 434) (17 379) (140 675)
of buy-back of shares
Shares issued 921 1 324 8 209
Balance at end of period 1 081 070 920 514 983 192
Segmental Information
Restated Restated
Unaudited Unaudited Unaudited
6 months 6 months 12 months
ended ended ended
31 March 31 March 30 Sept
Change 2006 2005 2005
% R"m R"m R"m
Revenue
Animal Nutrition (7) 1 244 1 331 2 516
Poultry 12 1 838 1 639 3 356
Inter group (649) (639) (1 259)
4 2 433 2 331 4 613
Operating profit
Animal Nutrition 11 121 109 224
Poultry 84 293 159 373
54 414 268 597
Notes
1. Basis of preparation
The financial statements of the Group are prepared for the first time under the
International Financial Reporting Standards (IFRS) for the year ending 30
September 2006, and accordingly, comparative figures have been restated.
The Group has made the following elections in terms of IFRS 1 (First-time
Adoption of International Financial Reporting Standards) as at the transition
date (1 October 2004):
* Cumulative translation losses of foreign operations at date of transition to
IFRS amounting to R8 004 000, were set to zero.
* Goodwill items resulting from acquisitions prior to the date of transition to
IFRS were not restated, and represent the written down value as previously
recorded under SA GAAP. Goodwill was tested for impairment at date of
transition.
The accounting policies of the Group are consistent in all material respects
with those applied in the previous financial year except for those changes
presented in note 2.
2. Changes in accounting policies
The following changes in accounting policies were applied:
* IFRS adjustment - Depreciation of property, plant and equipment based on
historical costs, by component, and being re-assessed with due regard to useful
life and residual value.
* SA GAAP adjustment - Consolidation of a partnership at 100% (previously
proportionately consolidated at 82%).
Restated Restated
Unaudited Unaudited Unaudited
6 months 6 months 12 months
ended ended ended
31 March 31 March 30 Sept
2006 2005 2005
R"000 R"000 R"000
3. Reconciliation of profit for
the period
The reconciliation of profit
previously reported in
accordance with SA GAAP, to
profit as restated in
accordance with IFRS, is set
out below:
Profit previously reported 164 675 397 768
Revised depreciation on 10 278 15 423
property, plant and
equipment
Full consolidation of 1 004 2 343
partnership
Amortisation of goodwill 6 234 -
Profit restated 182 191 415 534
4. Operating profit
The following items have been
accounted for in the
operating profit:
Biological assets - fair 727 (3) (218)
value gain/(loss)
Amortisation of intangible 2 252 - 1 026
assets
Depreciation on property, 41 743 35 185 76 685
plant and equipment
Profit on disposal of 698 331 15 287
property, plant and equipment
Foreign exchange (280) - 2 283
(loss)/profit
5. Reconciliation to headline
earnings
Earnings for the period 278 046 180 141 410 242
Profit on sale of property, (495) (235) (13 875)
plant and equipment
Loss related to sale of - - 1 099
business unit
Headline earnings for the 277 551 179 906 397 466
period
6. Share capital
In terms of the share buy-back programme 1 045 000 shares were acquired during
the period under review at a total cost of R79 434 000. (Average cost R76 per
share).
In terms of the Group"s share incentive scheme, 107 600 shares were issued in
respect of share options exercised during the period under review.
7. Capital commitments
Capital expenditure approved 114 155 32 462 23 484
not contracted
Capital expenditure 107 - 44 814
contracted not recognised in 611
financial statements
Financial overview
Headline earnings for the first half showed a 60% improvement to 692 cents per
share from last year"s 432 cents per share as a result of the excellent trading
results and the effect of the share buy-back programme. Revenue increased by 4%
to R2,4 billion (2005: R2,3 billion) with the impact of lower maize prices and
feed revenues offsetting the strong growth in poultry revenue.
Operating profit increased by 54% to R414 million (2005: R268 million), 71% of
which was contributed by the poultry results. Operating margin increased from
11,5% to 17,0%.
As a result of the strong cashflow net interest of R2,4 million was earned
compared with net interest paid of R7,9 million last year.
The effective tax rate of 32,5% includes STC on last year"s increased final
dividend, compared with last year"s 30,0% which benefited from the 1% reduction
in company tax.
Net cashflow increased by R6 million despite capital expenditure of R98 million
and increased share buy-backs of R79 million (2005: R17 million).
The increased capital commitment of R222 million (2005: R32 million) relates
mainly to the current Earlybird expansion programme.
Operational overview
Animal Nutrition Division
The South African maize industry is experiencing a second, but very different,
crisis. Whereas last year"s crop of 11 million tons was a near record resulting
in domestic price declines, a reduction in production is forecast for the
current season following significantly lower plantings and the wettest season
for many years. The stock carry-over at the end of this season is expected to
drop from last year"s 4,2 million tons to as low as 1,5 million tons. The maize
price has consequently increased strongly from R750 per ton from October to R1
050 per ton in March this year.
Revenue dropped by 7% to R1,2 billion as selling prices dropped in line with
lower commodity prices. However, operating profit increased by 11% to R121
million and net margin from 8,2% to 9,7% due to careful cost control and
effective procurement policy.
Poultry Division
The benefit of last season"s low maize prices continues into the period under
review.
The market was driven by continuing strong consumer spending especially during
the first four months of the first half. Sporadic outbreaks of Newcastle disease
in the industry created a supply shortage at times despite high levels of
imports. Volumes also increased by 5% as a result of increased production.
Together these factors resulted in a 7% increase (2005: 1%) in selling prices
with margins up from 9,7% to 15,9%.
Revenue increased by 12% to R1,8 billion and operating profit by 84% from R159
million to R293 million.
The South African anti-dumping duties against USA producers are still under
review.
So far the avian flu epidemic has not impacted on the South African poultry
industry. However, it does pose a risk and we have implemented additional
controls to mitigate our exposure.
Prospects
Poultry profits are not expected to continue at the level of the past six months
and as a result second half earnings are not expected to match the first half.
Declaration of Ordinary Dividend No. 11
Notice is hereby given that dividend no.11 of 225 cents per ordinary share has
been declared in respect of the six months ended 31 March 2006.
Last date to trade cum-dividend Friday, 30 June 2006
Shares commence trading ex-dividend Monday, 3 July 2006
Record date Friday, 7 July 2006
Payment of dividend Monday, 10 July 2006
Share certificates may not be dematerialised or rematerialised between Monday, 3
July 2006 and Friday, 7 July 2006, both days inclusive.
On behalf of the board
J L van den Berg N C Wentzel
Chairman Chief Executive Officer
Pretoria
15 May 2006
Registered office
Block E, Castle Walk Office Park
Erasmuskloof, Pretoria
Postnet 329, Private Bag X10, Elarduspark, 0048
Telephone: (012) 347-5077
Website address: www.astralfoods.com
Incorporated in the Republic of South Africa
Registration no 1978/003194/06
Share code ARL ISIN ZAE000029757
Directors
J L van den Berg (Chairman)
*N C Wentzel (Chief Executive Officer)
*#T Pritchard (Financial Director) *M A Kingston
*C E Schutte, *C A du Toit, J J Geldenhuys
C G van Veyeren, M Macdonald, T C C Mampane
(*Executive director)
Company Secretary
M Eloff
Transfer secretaries
Computershare Investor Services 2004 (Pty) Limited
PO Box 61051
Marshalltown, 2107
Telephone: (011) 370-5000
Sponsor
JP Morgan Chase Bank NA
(Johannesburg Branch)
1 Fricker Road, Illovo
Johannesburg, 2146
Private Bag X9936
Sandton, 2146
Telephone: (011) 507-0430
Date: 16/05/2006 08:01:12 AM Produced by the JSE SENS Department
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
