Ingham’s will pass on chicken price increases to its customers
“So yes we will pass on the prices but it will still be the cheapest form of protein for Australian consumers so we assume that still means [chicken is] a popular choice for families on a budget.”
The $1 billion broiler producer is struggling to recover from supply chain disruptions, inflationary pressures, labor woes and challenges facing its farm operations, and reports losses in earnings, net income and dividends. Staff shortages contributed to a drop in breeding rooster fertility, resulting in lower poultry volumes.
Andrew Reeves, CEO of Ingham, says the company is facing cost increases across the business.Credit:Louie Douvis
Ingham’s net income of $17.2 million was a decrease of 55 percent from the same half last year, while earnings (EBITDA) of $197 million represented a decrease of 10.6 percent.
The company will pay a fully paid dividend of 4.5 cents per share, down 30.8 percent from the dividend paid around this time last year.
Loading
By midday, Ingham’s share price fell nearly 2 percent to $2.70 as shareholders digested the results.
While net income results fell short of E&P Financial estimates, retail analyst Phillip Kimber noted that EBITDA came in 4 percent better than expected, suggesting an increase in profits.
“For those investors who like to look through a different hard map [second half]assuming feed costs remain stable (or continue to fall), future earnings…would support a higher share price,” Kimber said in a note to investors.
The Business Briefing newsletter delivers important stories, exclusive coverage and expert opinions. Sign up to receive it every weekday morning.
https://www.smh.com.au/business/companies/almost-inevitable-your-chicken-dinner-is-set-to-get-more-expensive-20230217-p5clbd.html?ref=rss&utm_medium=rss&utm_source=rss_business Ingham’s will pass on chicken price increases to its customers
