South Africa-listed poultry producer Astral Foods (ARLJ.J) has reported a cybersecurity incident that disrupted its operations and is expected to affect its profits by approximately 20 million rand ($1.10 million) for the six months ending March 31, 2025. The company announced the incident on Monday, stating that it had taken action to mitigate the impact and restore operations.
Astral Foods confirmed that the cybersecurity incident occurred on March 16, 2025, leading to downtime in its poultry processing division. The disruption delayed processing and deliveries, affecting revenue generation. Although the company swiftly implemented disaster recovery protocols, the temporary halt in operations resulted in financial losses.
The company stated, “On March 16, 2025, Astral experienced a cybersecurity incident. The Group acted swiftly, implementing all disaster recovery protocols and preparedness plans. However, our Poultry Division was negatively impacted by downtime in processing and deliveries to customers. This resulted in a loss of revenue, and together with costs to catch up on a backlog in production, have impacted the Group’s profits in this reporting period by approximately R20 million.”
By the time of the announcement, Astral Foods confirmed that all business units were operating normally, and its systems had fully recovered. The company assured stakeholders that no confidential or sensitive data related to customers, suppliers, or individuals had been compromised.
Profit Decline Forecasted at 60% Due to Astral Foods Cyberattack
In addition to the cybersecurity incident, Astral Foods expects a significant decline in profits for the first half of the fiscal year. The company forecasts a drop of up to 60% in its half-year profit due to multiple challenges, including the Astral Foods cyberattack, lower poultry prices, and increased production costs.
Astral projects its headline earnings to be around 354 cents per share for the first half of the fiscal year. The poultry industry has faced economic pressure due to constrained consumer spending and rising input costs, particularly feed costs that have surged following last year’s drought.
Challenges Facing the Poultry Industry
The poultry sector in South Africa has been experiencing tough conditions due to:
- Lower Chicken Prices: A drop in poultry prices due to reduced consumer spending has affected revenue generation.
- High Input Costs: The costs of feed and production have increased, particularly due to supply chain challenges and climate conditions.
- Operational Setbacks: The cybersecurity incident exacerbated existing financial pressures, disrupting production and causing additional recovery expenses.
Recovery and Assurance to Stakeholders
Astral Foods emphasized that its cybersecurity response was effective in mitigating further risks and preventing data breaches. The company expressed its gratitude to its customers, employees, and service providers for their ongoing support during the recovery period.
“We would like to sincerely thank our customers, staff, and service providers for their unwavering support,” Astral stated in its announcement.
With all business units now operating normally, the company is focused on maintaining stability and improving performance in the coming months.
Future Outlook
As Astral Foods moves forward, the company aims to strengthen its cybersecurity measures to prevent future incidents. It also continues to navigate economic challenges by optimizing operations, managing costs, and ensuring a resilient supply chain.
While the first half of the fiscal year has been impacted, the company remains optimistic about long-term recovery and growth.
Astral Foods’s rapid response and recovery efforts prevented further damage, but the financial impact remains significant. With all business units back to normal operations, Astral Foods now focuses on overcoming market challenges and reinforcing its security framework to safeguard future operations.
As businesses increasingly rely on digital infrastructure, cybersecurity resilience remains a top priority. The poultry producer’s experience underscores the critical need for proactive measures in safeguarding business continuity against evolving cyber threats.
