Cyber attack disrupts Astral Foods, triggers profit decline

Astral Foods has warned of a significant decline in its half-year profit, with the impact of a cyber attack on its operations adding to the financial strain.

The leading South African poultry producer expects its earnings per share (EPS) to drop to 415 cents, down from 923 cents the previous year, while headline earnings per share (HEPS) could fall to 354 cents from 884 cents. This data represents a decrease of up to 60%, driven by multiple challenges, including lower chicken prices, higher feed costs, and the cyber attack’s disruption.

 

The cyber attack, which occurred on March 16, 2025, affected Astral’s poultry division, causing downtime in processing and delays in customer deliveries.

 

Although the company acted swiftly, the incident resulted in revenue losses and additional costs to clear production backlogs. Astral estimates the financial impact of the cyber attack at around R20 million ($1.1 million). The company stated, “At the date of this announcement, all businesses are operating normally. Following the recovery of our systems, Astral can confirm no confidential information or sensitive data of customers, suppliers, or individual stakeholders was compromised as a result of the cyber attack.”

Astral has shared no further details regarding the nature of the attack, the methods used by the attackers, or whether any ransom demands were made. Additionally, no threat actors have claimed responsibility for the attack as of now.

Beyond the cyber attack, other factors have contributed to Astral’s declining profitability. The company has faced falling chicken prices due to weak consumer spending and extensive retail promotions on frozen poultry. At the same time, the rising cost of poultry feed, driven by the 2024 drought and higher local maize prices, has put additional pressure on earnings. During its year-end results presentation in November 2024, Astral had already warned that broiler net margins would continue to face challenges.

Despite these difficulties, Astral remains financially stable, supported by strong cash generation. The company has maintained a net cash position in the first half of the 2025 financial year, a notable improvement from its net debt position in the same period of 2024. This financial resilience comes after the company recorded a full-year revenue increase of 6.4% to R20.48 billion in September 2024. The poultry division accounted for 82.6% of external revenue, with the feed division contributing 17.4%. Astral also turned its fortunes around last year, posting a profit after tax of R753 million, recovering from a R512.2 million loss in 2023.

iZOOlogic security researchers will continue to monitor the situation and provide updates as they become available.