Astral Foods incurs more than R120m costs in operational challenges
In its financial results and dividend declaration for the year ended September 30, Astral said severe water supply interruptions at Goldi, its largest poultry processing facility based in Standerton under the Lekwa Municipal District, as well as Eskom electricity interruptions, had marred what could have been a good year for the group.
“We have to utilise about 110 trucks a day to ensure that the operations have the water needed in that operation. On top of the R120m we have spent for water and electricity, we are also spending an additional R2m a month on diesel.
“It becomes difficult to continue investing when we have these infrastructural challenges,” chief executive Chris Schutte said, blaming the government for its failure to sort out the water supply despite assurances given to the group in the past.
The overall extraordinary costs for Astral during the period amounted to R223m, which also included the cost of industrial action in its KwaZulu-Natal operations.
Source: iol.co.za
