Image source: © Alexmillos | Megapixl.com

Highlights

  • Inghams Group is an ASX-listed company which produces and sells chicken and turkey products
  • In FY23, the company witnessed 12.2% YoY increase in revenue to AUD 3,044 million and 72.1% YoY rise in net income to AUD 60.40 million
  • In 1HFY24, net profit after tax increased by 268.6% YoY to AUD 63.4 million.

Inghams Group Limited (ASX: ING) is an ASX-listed integrated poultry producing company, engaged in producing and selling turkey and chicken products. In the financial year 2023 (FY23), ING recorded a 12.2% YoY rise in revenue to AUD 3,044 million and 17.9% YoY increase in EBITDA to AUD 440.30 million. Net income during the reported period increased by 72.1% YoY to AUD 60.40 million, while net debt decreased by 2.4% YoY to AUD 1,631 million.

Key financial highlights

In the first half of FY24, the company registered an 8.7% YoY increase in revenue to AUD 1,642.2 million, driven by NSP hikes which were enacted in FY23 and early 2024. During the reported period, EBITDA increased by 28.8% YoY to AUD 253.7 million and net profit after tax zoomed by 268.6% YoY to AUD 63.4 million.

Recent strategic acquisitions 

In October 2023, the company concluded the acquisition of Bromley Park Hatcheries after receiving all the necessary regulatory approvals. The company had acquired Bromley Park for AUD 6.6 million which comprise AUD 3.5 million for fixed assets and AUD 3.1 million for working capital.

In December 202, the company had finalized the purchase of land and building for the Bolivar Primary Processing factory in Burton, South Australia for AUD 75.6 million.

Outlook

In the second half of FY24, the company expects market conditions for consumers to remain tough. In FY25, a little slowdown in inflation and tax relief for consumers are expected to extend some relief.

The cost pressure might lead to a change in consumer behaviors, which isr likely to affect poultry sales volume and distribution channels.  Compared to the first half of 2024, lower financial results are anticipated in the second half due to rising costs for fuel, feed, labor, energy and CO2.

Share performance of ING

ING shares closed 2.49% down at AUD 3.53 apiece on 21 February 2024. With this, ING’s share price has surged by 13.51% in the last one year, while in the last one month, it has dropped by 18.66%.

The 52-week high of ING is AUD 4.51, recorded on 6 February 2024, and the 52-week low is AUD 2.58, recorded on 3 July 2023.

ING Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 21 February 2024. The reference data in this report has been partly sourced from REFINITIV.