Core poultry sales grew for the Ingham’s Group in FY22, but the impact of Omicron was too big for the company to recover financially by the end of financial year.
Statutory Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) was down 16.6 per cent on PCP to $370.4 million, while Statutory Net Profits After Tax (NPAT) was down 57.9 per cent to $35.1 million.
Snapshot
- Group Core Poultry Volume: 465.6 kt, up 4.2%;
- Statutory EBITDA: $370.4m, down 16.6%;
- Statutory NPAT: $35.1m, down 57.9%; and
- Net Debt: $267.3m, up 11.3%.
“Given the major operational challenges in the third quarter due to Omicron, it has not been possible to recover the financial results shortfall for that quarter, hence the full year results were significantly lower that PCP,” the company said.
Cash flow from operations was $372.5 million, down 17.5 per cent versus PCP due to “significantly” lower trading results.
The company had a major channel mix shift to Wholesale, which cause a reduction in production line value-add products in H2 and channel oversupply and lower pricing in Q3,
Ingham’s said the shift to Wholesale was industry wide due to SKUs during Omicron being temporarily rationalised, which impacted products in the Retail chain. Margins in the Wholesale channel have “significantly improved”, it said.
In Australia, revenue increased 1.7 per cent on PCP, driven by 5.2 per cent growth in core poultry volume and a 3.5 per cent drop in net selling prices stemming from the channel mix shift from Retail to Wholesale.
The cost of sales increased 5.7 per cent with major cost inflation across a broad variety of inputs, particularly for feed, ingredients and transport costs. Feed costs increased by $45.4 million.
Ingham’s said the recovery it started to see in Q4 is continuing, but there are still “headwinds” in H1FY23, including the return to normal performance levels of farming and operations, supply chain delays, on-going absenteeism, inflation and price increases.
