Inghams Group Limited reported strong interim financial results for 1H24 with a significant increase in EBITDA and NPAT compared to the prior corresponding period (PCP).
EBITDA for 1H24 was $253.7 million, up 28.8%, and Underlying EBITDA pre AASB 16 was $138.4 million, up 65.9% on PCP.
NPAT for 1H24 was $63.4 million, an increase of 268.6%, and Underlying NPAT pre AASB 16 was $69.3 million, up 107.5% on PCP.
Group core poultry sales volume increased by 2.2% on PCP, with a notable shift in consumer demand towards in-home dining and convenience products.
An interim fully franked dividend of 12.0 cents per share was declared, representing a 20.0% growth on the final dividend of 2H23 and 166.7% on PCP.
Net Debt stood at $345.9 million with a leverage ratio of 1.5x, within the target range of 1.0 – 2.0 times.
Significant investments in automation and network improvements were highlighted, including the acquisition of modern leg deboning machines and the opening of new distribution centers.
The outlook for 2H24 anticipates challenging market conditions for consumers but suggests potential benefits from income tax relief and a modest slowing in inflation.
Inghams expects some benefit from lower key feed costs in FY25, although overall costs are anticipated to remain elevated versus longer-term levels.
The company is focusing on operational efficiency, continuous improvement initiatives, and higher levels of automation to reduce operating costs and improve safety and product quality.
This announcement is a summary of the company approved ASX announcement on 19/2/2024 and is based on facts from the announcement.