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Inghams impacted by Omicron

Inghams Group slipped 5% on Friday after it announced its half-year financial results which had been significantly affected by Omicron. The poultry processor recorded a 1.8% climb in its half-year revenues, a 5.9% increase in profits, however, it also cut its dividend by 13%, reflecting recent trading performance.


The company said the first half of FY22 had been characterised by the ongoing challenges presented by COVID-19. The extended lockdowns in NSW and Victoria, and heightened restrictions in place for the majority of the half in New Zealand, contributed to the significant operational disruptions.


Despite the disruptions, Ingham’s delivered solid results in the half as core poultry sales volume grew by 5.6%, driven by strong volume growth of 6.5% in Australia.


EBITDA was $220.4 million, an increase of 2.2% on the prior comparative period, while NPAT increased 8.8% to $38.4 million.


The group declared a fully franked interim dividend of 6.5 cents per share, paying out approximately 60% of Underlying NPAT, being at the lower end of the company’s target range.


Ingham’s CEO and Managing Director, Andrew Reeves, said: “The results we have delivered in the first half are broadly in-line or ahead of the first half of 2021, reflecting the resilience of our business and people, and the ongoing benefits of the Company’s continuous improvement program. We remain optimistic about the future, especially as the impacts of Omicron recede. The first half results are a testament to our ability to respond to external challenges and our ability to recover and adapt quickly.”