- Inghams‘ net income for the first half is A$51.5 million, down 19% year-over-year (y/y), missing the estimated A$56.9 million.
- Underlying EBITDA came in at A$216.6 million, slightly below the forecast of A$225.4 million.
- Reported EBITDA was A$210.4 million, a decrease of 17% y/y.
- The company saw a reduction in core poultry volumes to 234,200 tons, which is 2.7% lower y/y.
- Revenue decreased by 1.9% y/y to A$1.61 billion, just under the A$1.62 billion estimate.
- In Australia, revenue fell by 2.5% y/y to A$1.35 billion, while New Zealand saw a 1.5% y/y increase to A$256.7 million.
- The interim dividend per share is A$0.110, compared to A$0.120 last year, matching the estimate.
- The company maintains its forecast for a 1% to 3% decline in core poultry volume for the year.
- Inghams expects underlying EBITDA, pre-AASB 16, to range from A$236 million to A$250 million for the year.
- Despite reductions, Inghams has made significant progress under its new Woolworths supply agreement.
- The company aims to achieve its FY25 volume and earnings guidance.
- Revenue and core poultry volume are expected to drop slightly in FY25 due to several business changes and cost-of-living pressures on consumers.
- Inghams anticipates modest growth in core poultry NSP and benefits from lower feed costs in FY25.
- Annualised cost savings are expected alongside a capital expenditure forecast of A$100-120 million for FY25.
- Investment recommendations for Inghams include 7 buys, 4 holds, and 1 sell.
A look at Inghams Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 5 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have provided an overall outlook for Inghams Group Limited based on their Smart Scores. With an impressive Dividend score of 5 and Growth score of 5, Inghams is perceived as a company that excels in rewarding its investors and has strong potential for future expansion and development. However, the company scored lower in terms of Value and Resilience, with scores of 2, indicating that there may be concerns regarding its current valuation and ability to withstand economic challenges. In terms of Momentum, Inghams received a score of 3, suggesting a moderate level of market momentum.
Inghams Group Limited, known for its production of poultry products, serves retailers in Australia and New Zealand. The company’s strong Dividend and Growth scores signify a positive long-term outlook, highlighting its focus on shareholder returns and potential for sustained growth in the industry. Despite facing some challenges in terms of Value and Resilience, Inghams‘ overall profile indicates a solid foundation with room for improvement, supported by its presence in the poultry production and distribution sector in the region.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
