Inghams Group (ING) H2 2024 earnings summary

Executive summary

• FY24 delivered record results with revenue up 7.2% to $3.3 billion and underlying EBITDA (pre AASB 16) up 30.8% to $240.1 million, driven by volume and margin growth in both Australia and New Zealand.

• Net profit after tax rose 68% to $101.5 million; EPS increased 68% to 27.3cps; fully franked dividends up 38% to 20.0cps.

• Safety performance improved, with TRIFR down to 4.4 and a 7% decline in total recordable injury frequency rate.

• Core poultry sales volume rose 2.8% year-over-year, with net selling price up 5.4% and retail channel growth offsetting QSR declines.

• Strong improvement in New Zealand operations, with underlying EBITDA (pre AASB 16) up 100.9% year-over-year.

Financial highlights

• Underlying pre-AASB 16 EBITDA rose 31% to $240.1 million, with margin up 130 bps to 7.4%.

• Group revenue increased 7.2% year-over-year to $3.3 billion, driven by a 2.8% rise in core poultry volume and 5.4% growth in net selling price.

• NPAT grew 68% to $101.5 million; operating cash flow was $453.1 million, up 21.9% year-over-year, with cash conversion at 98%.

• Net debt increased by $85.4 million to $347.9 million, mainly due to acquisitions.

• Dividend payout ratio at 73.1%, within the 60–80% target range.

Outlook and guidance

• FY25 core poultry volume expected to decline 1%–3% due to phased Woolworths agreement and cost-of-living pressures.

• Underlying pre-AASB 16 EBITDA forecast between $236–250 million, representing flat to ~6% growth.

• Modest growth in net selling price expected, with some benefit from lower feed costs and cost savings initiatives planned.

• Capital expenditure forecast at ~$100–110 million, excluding Bostock acquisition.