Astral Foods expects boost from interest rate cut
Improved economic prospects, demand expected in 2025
19 November 2024
1 minute read
By: South Africa's largest poultry producer, Astral Foods, said on Monday it expected interest rate cuts to improve economic prospects and demand in 2025, after bouncing back from a rare loss last year, Reuters reported.
Astral reported headline earnings per share of 19.20 rand ($1.06) for the year ended Sept. 30, compared to a loss of 13.24 rand during the same period last year, hurt by power cuts and South Africa's worst avian influenza outbreak.
Total revenue rose 6.4% to 20.5 billion rand during the year as the company's poultry and stock feed segments grew despite constrained consumer spending.
Astral said a series of expected interest rate cuts, coupled with South Africa's "two pot" pension reforms allowing people to make partial withdrawals from their pension funds before retirement, could help boost consumer demand.
South Africa's tax authorities said about $1.2 billion was paid out in the first six weeks of the pension reforms taking effect in September.
The country's central bank lowered its main lending rate by 25 basis points to 8% on Sept. 19, the first cut in more than four years. The South African Reserve Bank is expected to implement a further rate cut this week.
($1 = 18.1326 rand)
