The poultry company reported a 17 per cent drop in earnings before interest, taxes, depreciation, and amortisation (EBITDA) to $210 million and a 19 per cent drop in net profit after tax (NPAT) to $51.5 million in 1H FY25 on the prior corresponding period (pcp).
Inghams CEO and MD, Andrew Reeves, said the company was performing well overall and was still on track to meet its volume and earnings guidance for FY25.
Snapshot
- Reported EBITDA: $210.4m, down 17.1% pcp;
- NPAT: $51.5 million, down 18.8% pcp;
- Revenue: $161.1m, down 1.9% pcp;
- Core poultry volume: 234.2kt, down 2.7% pcp;
- Net selling price (NSP): 294.4kt, up 1% pcp; and
- Dividend: 11c, down 8.3%.
“We have made significant progress in covering the reduction in volume under the new Woolworths supply agreement, with new business in Retail and QSR equivalent to approximately 75 per cent of the volume reduction now secured and I remain confident of further progress in the coming months,” Reeves said.
The first half saw a shift in channel mix, with volume moving from wholesale into retail as well as growth in its by-products volume. Reeves said this was due to some third-party wholesale sales moving into in-house processing.
“[This] was supported by our recent investments in automation and efficiency initiatives and the temporary closure of export markets,” he said.
The Export channel volume declined 19 per cent as key markets closed following Avian influenza-related disruptions at non-Inghams farms in December.
Retail grew 2.5kt, which reflected the shift toward in-home dining due to cost-of-living pressures, increased demand for convenience products, and incremental sales growth with existing customers.
Quick Service Restaurant (QSR) declined by 1.4kt in the first half as cost-of-living pressures drove a shift from out-of-home dining; but there were indications of channel demand stabilising with volumes increasing 0.6 per cent versus normalised 2H24, the company said.
New Zealand core poultry volume increased 5 per cent pcp, driven by growth in both the Retail and Export channels, with its acquisition of Bostock Brothers contributing 2.9 percentage points to NZ growth. External feed volumes declined 5.1 per cent on pcp due to an increase in internal feed requirements and a reduction in external customer business.
The company reaffirmed its FY25 guidance, with core poultry volume growth down 1-3 per cent and an underlying EBITDA (pre AASB 16) of $236-250 million – representing flat to -6 per cent growth.
