Inghams posts 19% drop in HY profit, misses estimates
Make us a preferred source
Make us a preferred source on Google
The news: Poultry producer Inghams posted a 19% decline in first-half profit to $51.1 million, missing market estimates as core poultry volumes declined in Australia, partly reflecting the company's transition to its new supply agreement with Woolworths.
The numbers: The company was expected to post a 16% fall in net profit to $53.15 million during the half, down from $63.40 million in the same period last year, according to Visible Alpha data.
Revenue fell 31% year on year to $1.6 billion. The company declared an interim dividend of 11 cents per share, down from 12 cents per share a year earlier.
The context: Inghams reaffirmed its full-year guidance, anticipating poultry volumes to be "marginally lower" than FY24 due to the phased introduction of its new Woolworths supply agreement and the impacts of cost-of-living pressures on consumers.
E&P retail analyst Phillip Kimber said it was a "solid result" but noted that Inghams will require a "material change in operating momentum" to meet its full-year underlying earnings guidance.
The sources: ASX, E&P research
