Inghams Group Limited Reports Positive 1H24 Trading Update

Inghams Group Limited (ASX: ING) has released its trading update for the first half of the financial year, ending on 23 December 2023 (1H24). This update follows a strong recovery during the second half of the previous fiscal year (2H23), as highlighted in the FY23 results presentation from August, which set a promising tone for FY24. The positive operational performance continues into 1H24, thanks to various contributing factors.

Factors Driving Performance

• Operational Performance Metrics: A sustained improvement in operational performance across farming and processing has been a key driver of Inghams' success in 1H24.
• Increased Poultry Demand: The poultry category is experiencing strong demand, with some customers allocating more shelf space to poultry products.
• Wholesale Pricing Improvements: Further enhancements in Wholesale pricing have positively impacted the company's performance.
• Recovery in New Zealand: Inghams has also seen an accelerated recovery in its New Zealand operations.

Earnings Guidance for 1H24

In light of the current trading performance and outlook for the remainder of 1H24, Inghams Group provides the following earnings guidance for the period:

• Statutory EBITDA Post AASB16: Approximately $247 million
• Statutory NPAT Post AASB16: Approximately $65 million
• Underlying EBITDA Pre AASB16: Approximately $138 million
• Underlying NPAT Pre AASB16: Approximately $71 million

It's worth noting that the 1H24 outlook is contingent on factors such as the continuation of current Wholesale pricing levels and maintaining the current pace of operational improvements. The company expects the results for 2H24 to be lower than 1H24 due to the typical seasonality in the industry and ongoing inflationary pressures affecting labor, feed, and other costs, including fuel, electricity, and CO2.

Upcoming Events

Inghams Group Limited is scheduled to hold its 2023 Annual General Meeting on 7 November 2023, and the half-year results are anticipated to be released in mid-February 2024.

This trading update was authorized by the Inghams Group Limited Board of Directors and marks another positive step in the company's journey as it continues to deliver solid results.

For further information, investors can contact Cate Chandler, while media inquiries can be directed to Sue Cato. Inghams emphasizes that the information provided, including EBITDA, is non-IFRS information meant to reflect the underlying business performance.

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