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ARL's modest pullback to R24,235 hardly reflects the structural headwinds in poultry margins and the company's persistent exposure to input cost volatility that keeps ROIC depressed relative to cost of capital.
Topped up my ARL position today after that 3.32% run because the poultry exposure gives me some inflation hedge for the retirement bucket, and at these levels the dividend yield is looking more attractive for the medium term.
ARL dropped 1.14% today to R24775, anyone else noticing the chicken prices still haven't come down at Pick n Pay even with these numbers? Makes me wonder if the margin pressure is real or just temporary.
ARL down 0.62% to R25,293 - chicken producers getting squeezed again by input costs. This margin compression isn't stopping anytime soon.