FY23 Financial Performance and Market Strategy slide image

FY23 Financial Performance and Market Strategy

BALANCE SHEET EARNINGS RECOVERY DELIVERS IMPROVEMENT IN LEVERAGE Biologicals: increased $24.2M (+17.8%) as the higher cost of feed cycles through the asset class Inventories: declined $20.0M due to a decline of $33.4M in Feed inventories due to a shift away from purchasing and holding inventory at 3rd party locations, offset by an increase in processed and other inventory due to higher input prices Receivables: increase of $46.6M was predominantly due to an increase in Trade Receivables of $42.9M, comprising a $26.3M (+10.5%) increase in Accounts Receivable and a reduction in Rebates due to the resolution of a FY22 claim Payables: increased $10.9M due to an increase in Trade Creditors of $19.6M (+12.1%) due to input cost inflation offset by a reduction in the inventory procurement trade payable of $9.3M Right-of-use Assets: declined $43.8M, due to depreciation offset by lease extensions, additions and CPI increases Lease Liabilities: decreased $35.1M due to $26.3M in disposals² and lease payments exceeding extensions, modifications and interest payments Payables Working Capital¹ Other Assets Lease Liabilities INGHAM'S Always Good $M Jun-23 Jun-22 Variance Inventories/Biologicals 388.2 384.0 4.2 Receivables 270.2 223.6 46.6 (466.4) (455.5) (10.9) 192.0 152.1 39.9 Provisions (145.6) (138.3) (7.3) Working Capital & Provisions 46.4 13.8 32.6 Property, Plant & Equipment Right-of-use Assets 493.8 477.3 16.5 1,275.6 1,319.4 (43.8) 5.7 13.3 (7.6) (1,368.5) (1,403.6) 35.1 Capital employed 453.0 420.2 32.8 Net Debt (262.5) (267.3) 4.8 Net Tax balances 11.3 5.3 6.0 Net Assets 201.8 158.2 43.6 1. Working capital adjusted for financing and non-operating items including deferred revenue and interest accrued 2. Cleveland lease re-assignment and contracts growers transitioning to variable contracts 14
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