Astral Foods forecasts growth as interest rates fall

Source: tawatchai07 via Freepik

Total revenue rose 6.4% to R20.5bn 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 $1.2bn was paid out in the first six weeks of the pension reforms, which took effect in September.

The country's central bank lowered its main lending rate by 25 basis points to 8% on 19 September, the first cut in more than four years. The South African Reserve Bank is expected to implement a further rate cut this week.