Inghams lifts on rosy earnings outlook

The news: Shares in Inghams are on the rise after the poultry producer outlined strong profit and earnings guidance amid robust demand for its products.

The numbers: Inghams shares were up more than 7% to $3.66 in early trading on the ASX after the company said it expects to deliver first-half statutory profit of $65 million and statutory earnings of $247 million. It had reported a full-year profit of $60.4 million in FY23.

The context: Inghams, which is Australia and New Zealand’s largest poultry producer, attributed the improved earnings to strong demand for poultry as consumers trade down amid higher living costs. It is also seeing further improvements in wholesale pricing. The group said the recovery in operational performance in the second half of the 2023 financial year "underpinned a positive start" to the new financial year.