Investor Presentaiton
PROFIT & LOSS
INGHAM'S
Always Good
BENEFIT OF PRICE INCREASES AND OPERATIONAL RECOVERY OFFSET SMALL VOLUME DECLINE
Volume: small decline in core poultry volume of 0.6%
$M
1H23
1H22
Variance
%
Australian volume declined 0.3% driven mainly by lower bird numbers
processed as a result of operational farming challenges
Core Poultry volumes (kt)
235.7
237.1
(1.4)
(0.6)
New Zealand volume declined 2.4%, reflecting temporary lower egg
setting to address impact of labour-related processing constraints and
reduced further processing production driven by nation-wide shortage of
CO₂
The reduction in external feed volumes reflects customer transition away
from WA feed mill before closure, and a reduction in feed available for
external sales in NZ
Revenue: increased 8.9% due to growth in average selling prices
Cost of sales increased 10.9% versus 1H22 due to increasing input costs,
including:
1H23 incremental feed cost increase of $57.9M
Packaging & ingredients cost increase of $12.4M due to price increases
passed on from suppliers
A $28.2M increase in freight costs as higher fuel and related costs were
passed through, with additional costs due to rail network constraints
Significant items: EBITDA includes Business Transformation costs of
$16.2M, less a $3.0M benefit relating to the Cleveland facility lease
assignment
Net finance expense: increased due to higher external debt level during the
period, increase in interest rates and signing of new leases and grower
contract extensions; offset by FX gain on NZD hedging
Tax expense: lower than PCP due to lower earnings and prior year $2.2M
provision reversal
Net finance expense
Tax benefit/(expense)
NPAT
Underlying EBITDA
Underlying NPAT
Total Poultry volumes (kt)
294.8
295.9
(1.1)
(0.4)
External Feed volumes (kt)
155.9
168.9
(13.0)
(7.7)
Revenue
1,511.2
1,388.1
123.1
8.9
Gross Profit
370.3
359.7
10.6
2.9
Gross Profit % Revenue
24.5
25.9
(1.4)
(5.4)
EBITDA
197.0
220.4
(23.4)
(10.6)
EBITDA % Revenue
13.0
15.9
(2.9)
(18.0)
Depreciation & Amortisation
(135.6)
(136.1)
0.5
(0.4)
EBIT
61.4
84.3
(22.9)
(27.2)
(37.4)
(33.2)
(4.2)
12.7
(6.8)
(12.7)
5.9
(46.5)
17.2
38.4
(21.2)
(55.2)
210.2
222.4
(12.2)
(5.5)
26.6
39.7
(13.1)
(33.0)
Underlying EBITDA (pre AASB 16)
83.5
99.7
(16.2)
(16.2)
Underlying NPAT (pre AASB 16)
33.7
48.1
(14.4)
(29.9)
13View entire presentation