FY23 Financial Performance and Market Strategy
AASB 16 LEASE IMPACT
Balance Sheet:
Land and Buildings: Inghams has a large leased property portfolio.
Average term remaining on the portfolio is 12.5 years
Contract Growers: classified as right-of-use assets due to the fixed
and capital component of the fee structure. The variable component
of the payments are not captured by the AASB 16 standard. While
there is a trend of grower contracts transitioning to a variable basis
in FY23, the average grower term increased due to the extension of
existing NZ grower contracts during the period
Capital Employed
Tax
Profit & Loss:
AASB 16 leases impact to EBITDA is $250.1M of rental expense
"add backs" split between cost of sales $224.8M, distribution
$20.6M and sales & admin $4.7M
AASB 16 EBITDA increased $4.5M due to new leases, grower
extensions, modifications and CPI rental increases
AASB 16 NPAT improved $2.6M due to 19 growers transitioning to
variable performance contracts, which are no longer included within
the right-of-use assets or lease liabilities, resulting in lower interest
costs
INGHAM'S
Always Good
BALANCE SHEET $M
FY23
AU
NZ
FY22
Land & Buildings
Growers
811.5
701.1
110.4
835.5
446.0
303.2
142.8
461.9
Equipment
18.1
16.7
1.4
22.0
Right-of-use Assets
Lease Liability
1,275.6
1,021.0
254.6
1,319.4
(1,368.5)
(1,104.5) (264.0)
(1,403.4)
(92.9)
(83.5)
(9.4)
(84.0)
31.2
28.6
2.6
26.0
Net assets
(61.7)
(54.9)
(6.8)
(58.0)
P&L IMPACT $M
FY23
AU
NZ
FY22
EBITDA
250.1
210.8
39.3
245.6
Depreciation
EBIT
(214.0)
(180.7)
(33.3)
(214.7)
36.1
30.1
6.0
30.9
Net finance expense
(53.3)
(44.8)
(8.5)
(51.7)
Tax expense
5.1
4.4
0.7
6.1
NPAT
(12.1)
(10.3)
(1.8)
(14.7)
AVG. TERM (YRS)
FY23
AU
NZ
FY22
Land & Buildings
12.5
12.5
12.5
12.5
Growers
4.1
3.4
6.5
2.9
Equipment
2.0
2.0
1.9
1.9
29View entire presentation