Inghams Group (ING) H2 2024 earnings summary

Executive summary

• Delivered record FY 2024 results with revenue up 7.2% to $3,262.0M, strong year-on-year growth in earnings, profit, and cash flow, underpinned by volume and margin growth in both Australia and New Zealand.

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

• Achieved a return on invested capital of 21.3% and improved safety performance, with TRIFR down to 4.4, a 56% improvement over five years.

• Core poultry net selling price grew 5.4% year-over-year, with growth across all channels.

• 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 $240.1M, with margin up 130 bps to 7.4%.

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

• NPAT grew 68% to $101.5M and EBITDA 13% on a 53-week basis; normalized 52-week data also provided.

• Operating cash flow reached $453.1M, up 21.9% year-over-year; capex & acquisitions totaled $168.3M.

• Net debt increased by $85M to $348M, mainly due to acquisitions.

Outlook and guidance

• FY 2025 guidance: core poultry volumes expected to decline 1%-3% due to phased Woolworths agreement and cost-of-living pressures.

• Underlying pre-AASB 16 EBITDA forecast between $236M–$250M, representing up to 6% growth at the top end.

• Modest growth in net selling price expected, with some benefit from lower feed costs.

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