Inghams recovers and recovers sharply rising costs

Poultry, food service and food manufacturer Inghams Group has reported a strong profit increase for FY23 on flat volumes as it continues its recovery from supply chain disruptions and sharply rising input costs.

The company reported EBITDA of $418.5 million, up 13 percent on the previous year and net profit after tax (NPAT) of $60.4 million, a rise of 72.1 percent over FY22.

Group core poultry sales were 0.4 percent lower in FY23, and group revenue was up 12 percent.

Inghams CEO and Managing Director Andrew Reeves said the recovery demonstrated the breadth and momentum of the company’s operational recovery underway.

During the year the company faced increases in the cost of feed of $97.8 million due to Russia’s invasion of Ukraine, as well as rising costs including fuel, freight, ingredients, cooking oil and repairs and maintenance costs – all were above inflation.

Reeves said: “During FY23 we productively engaged with our customers to implement price increases across all channels.

“The price rises were necessitated by the significant increase in feed costs, and growth in other key input costs, with market demand for poultry that continues to outpace supply.

“In addition, we have continued to leverage growth channels that provide greater value, rationalising our product range and maintaining our long term focus on operational efficiency.”

During FY23 the company’s farming performance recovered from lower bird production following a drop in fertility of its breeding roosters.

“During FY23, Inghams announced a series of new investments in processing technology.

“These investments in automation, combined with the ongoing developments of a new breeder triangle in northern New South Wales, a new waste water treatment plant at Osborne Park (WA) and the progressive rollout of three state of the art distribution facilities, are positioning Inghams for growth through improved production capability and network capacity.”

Picture: Inghams Group