Despite Ingham’s recording a 68 per cent increase in net profit after tax to $101.5 million and revenue up 7.2 per cent to $3.3 billion, its share price dropped 20 per cent on news of a smaller contract with Woolworths and forecast flat growth.
Snapshot
- Revenue up 7.2 per cent to $3.3 billion;
- EBITDA of $471.1 million, up 12.6%;
- Underlying EBITDA pre AASB 16 of $240.1 million, up 30.8% on the prior corresponding period (pcp);
- NPAT of $101.5 million, an increase of 68.0% and Underlying NPAT pre AASB 16 of $109.2 million,
- an increase of 31.3% on pcp;
- Group core poultry sales volume increased 2.8% on PCP to 476.4KT, with net selling price (NSP) growth of 5.4% to $6.28/kg;
- Total fully franked dividends declared or paid of 20.0 cents per share, representing growth of 37.9% on pcp and a payout ratio of 73.1%; and
- Net Debt of $347.9 million and leverage of 1.5x.
Inghams CEO and managing director, Andrew Reeves, said it was the highest earnings recorded since the company listed in 2016.
Reeves said Inghams new multi-year contract with Woolworths would see it remain the retailer’s number one poultry supplier but would reduce the volume of the supply by 1-3 per cent.
