On Friday, Ingham’s Group announced its full-year financial results for FY21, highlighting that it achieved a strong performance while its balance sheet was strengthened.
Ingham’s reported that the results were underpinned by resilient demand for poultry and the encouraging operational outcomes arising from the delivery of its strategic plan.
Core poultry sales volume grew 4.2%, with demand growth across the majority of its channels. Statutory EBITDA was $443.9 million, an increase of 14.5% on pcp, while Statutory NPAT increased 107.7% to $83.3 million.
Throughout the COVID-19 pandemic, the company managed to keep operating with minimal operational disruption.
Feed costs stabilised during the second half however volatility in international commodity markets has led to domestic pricing holding firmer.
Looking ahead, Ingham’s confirmed that its has agreed in principle to an ongoing supply agreement with Woolworths for poultry products on broadly similar terms to its existing contract.
Ingham’s also expects to see the consumer recovery restart when vaccination rates increase and the current lockdowns are lifted, despite the near-term uncertainty created by these measures. As a result, volumes are expected to show continued growth with new business across various channels.
Total dividends for the period were 16.5 cents per share fully franked, an increase of 17.9% and reflecting a payout ratio of 71% of Underlying NPAT.
Ingham’s CEO and Managing Director, Andrew Reeves, said: “Our results today demonstrate the resilience of our business, the effectiveness of our strategy and the ongoing demand for poultry. These strong financial results are underpinned by solid poultry volume growth and a recovery across the majority of our key channels during the year. Operationally, we are in a strong position and our optimisation strategy has made a positive contribution to the results we have delivered."