Poultry group Astral Foods has warned that profits will fall in its year to end-September, after Covid-19 shut down fast-food restaurants and put pressure on selling prices.

The group expects headline earnings per share (HEPS) to drop by not more than 25% compared to the 1,674c it reported previously, with the group also facing increased safety costs during the pandemic.

Selling prices were under pressure from the closure of fast-food restaurants, which saw stock channelled into the quick-frozen market, the Astral’s trading update reads.

In morning trade the group’s share was up 0.8% to R142.55, having fallen by about a third so far in 2020.

Source: www.businesslive.co.za