FY23 Financial Performance and Market Strategy
CAPITAL MANAGEMENT OUTCOMES
FULLY FRANKED FINAL DIVIDEND OF 10.0 CPS DRIVING FULL YEAR PAYOUT RATIO OF 75.8%
Cashflow from
operations
Cashflow from strategic
activities
Cashflow from
interest and tax
Strong cash generation
INGHAM'S
Always Good
Sustaining capital¹
Annual spend range of approximately 75-90% of depreciation pre AASB 16
Maintaining a strong balance sheet
Target leverage² (underlying pre AASB 16) of 1.0x to 2.0x
Reliable dividends to shareholders
Dividend payout ratio 60-80% of Underlying NPAT
Cashflow from operations of $371.9M, broadly flat vs PCP
due to higher EBITDA offset by an increase in working
capital driven by higher commodity prices and input costs
in Biological Assets, Trade Receivable and processed
poultry inventory
Sustaining capex spend of $33.5M (61.8% of depreciation pre
AASB 16), below the target range due to COVID-related
delays. Capex spend expected to increase through FY24
Leverage of 1.4x within target range reflecting significant
improvement in earnings. Extended key debt facilities for a
further 2 years to November 2025
Fully franked dividends of 14.5 cps, representing a payout
ratio of 75.8% of Underlying NPAT, at upper end of policy
Investing in growth opportunities & major projects
Where aligned with strategy and expected to deliver returns in excess of specified hurdles
Additional returns to shareholders
Capital returns / special dividends / share buybacks
Maximise shareholder value
Over time the objective is to deliver a return on invested capital in excess of WACC
Growth and major project capex of $38.4M includes $9.3M
on the WA Primary Processing facility water treatment
plant, $20.3M on NSW Breeder Triangle and $8.8M on
initial payments for automation investments
Return on Invested Capital (Underlying, pre AASB 16)
(ROIC) of 19.0% (FY22: 13.7%)
1.
Sustaining capital includes maintenance, replacement, regulatory and stay-in-business capital
2.
Leverage = Net Debt/ LTM Underlying EBITDA pre AASB 16, Net Debt comprises of borrowing facilities less cash and cash equivalents
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