Ingham's Group Highlights and Financial Update
INGHAM'S
Outlook
Heart of the Table
> Poultry demand continues to grow as consumers are attracted by the relative affordability of chicken as a
healthy protein
> Current feed costs remain close to historic highs, impacting the outlook into 2H FY2020 dependent upon the
next domestic grain harvest
> Australian margins are being negatively impacted by higher input costs and channel mix
> Further Processing network rationalisation project has not delivered to plan. Stronger customer demand has
impacted operations, mix and resulted in higher costs. The financial impact will be significant in FY2020
> The new operations leadership team has quickly assessed performance issues and is implementing
solutions to balance the network and unlock additional capacity
> New Zealand performance is returning to year-on-year growth and remains well below historical profit levels
> EBITDA in FY2020 will be below underlying FY2019, with a return to growth expected in FY2021
> Dividend policy in FY2020 will maintain payout ratio of 60-70% of underlying NPAT, which excludes the
impact of leasing
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