Inghams Group CEO and managing director Jim Leighton said while the poultry producer had worked hard to rebuild operating performance in FY20, COVID-19 brought significant challenges to which it was not immune.
Snapshot:
- underlying Group EBITDA pre AASB16 decreased 13.8 per cent to $179.7 million;
- underlying NPAT pre AASB16 decreased 23.6 per cent to $78.8 million;
- transition to AASB16 resulted in the recognition of right-of-use assets of $1.429 billion and lease liabilities of $1.472 billion on the balance sheet at year end; and
- net debt of $314.7m increased $50.9m
Inghams’ year-over-year decline in both underlying EBITDA and NPAT was driven by the restructure of the further processing network in Q1, which impacted volumes, costs, mix and design. The impact of COVID-19 in the second half further weighed on the results.
The adoption of the new lease standard AASB16 significantly impacted statutory results with statutory EBITDA of $387.8 million including a positive benefit of $229.6 million. Its statutory NPAT of $40.1 million reflected a negative impact of $23.7 million.
Net debt increased due to higher inventory levels mainly due to COVID-19 and significant capital spend, Leighton said.
Jim Leighton added “The Ingham’s team has performed exceptionally well in managing through the increased cost, complexity and volatility that COVID-19 has imposed on our business. We introduced measures to minimise the potential impacts of the coronavirus on our people whilst mitigating disruption to our supply chain.
“We have also worked collaboratively with our customers, and our operations have quickly responded to changing demand requirements to ensure supply continuity of our high-quality products during this period of considerable stress and uncertainty.”
Its Victorian operations are currently operating with a reduced workforce due to government policy.
