Cybersecurity Breach Slashes Astral Foods' Profits

Astral Foods anticipates a significant decline in half-year profits by as much as 60%, impacted by a cybersecurity breach and declining chicken prices. The March 16 incident led to 20 million rand in losses. Despite operational return to normal, the financial hit is exacerbated by high input costs.

South Africa's leading poultry producer, Astral Foods, has announced that its half-year profits are expected to plummet by up to 60%. This downturn is attributed to a recent cybersecurity breach compounded by a decrease in chicken prices and soaring input costs.

The cybersecurity incident, which occurred on March 16, led to downtime in processing and delivery operations and resulted in an estimated 20 million rand ($1.10 million) reduction in the company's profits. However, Astral Foods assured stakeholders that business operations have since returned to normalcy, with no leakage of confidential customer or supplier data.

The company revealed that the financial hit comes in the wake of reduced chicken prices caused by consumer spending constraints and increased feed costs following last year's drought. The challenges mark a turbulent period for Astral Foods amidst competitive pressures in the poultry market.

(With inputs from agencies.)