AUSTRALIA and New Zealand’s leading poultry business, Ingham’s Group, has today released its results for the year to June 29 to show an increase in all key figures when compared with FY23 results.

However, FY25 is expected to see a dip in core poultry due to the phased introduction of Ingham’s new supply agreement with Woolworths, and the ongoing effects of cost-of-living pressures on consumers.

In FY24, Ingham’s core poultry volume of 476,400 tonnes was up 2.8 percent from the FY23 result, while the core net selling price of $6.28/kg was up 5.4pc from FY23.

Underlying earnings before interest, taxation, depreciation and amortisation of $240.1 million were up 30.8pc, and 50.4 cents on a per kg basis, comprising 47.7c/kg for Australia and 66c/kg for New Zealand.

Underlying net profit after tax of $109.2M was up 31.3pc from FY23.

“In FY24, Ingham’s has delivered its highest earnings on an underlying pre AASB 16 basis since listing in 2016,” Ingham’s chief executive officer and managing director Andrew Reeves said in a statement.

“Our strong results are underpinned by volume growth, improved margins, and good cost control and operational outcomes across both farming and processing.

“The key long-term fundamentals supporting the poultry sector remain in place, with poultry continuing to be the affordable protein of choice for consumers.”

Ingham’s core poultry volume saw a shift in channel mix to retail, with retail volumes up 20,900t from FY23 as consumers responded to cost-of-living pressures by increasing the frequency of in-home dining.

This volume growth was partially offset by a reduction in volumes in quick-service restaurants and other out-of-home channels.

Ingham’s said its higher core poultry net selling prices followed price increases implemented in FY23 and FY24 in response to cost increases in the current inflationary environment.

Feed and assets

Ingham’s is one of Australia’s largest stockfeed millers, and said pricing of key feed inputs moderated during FY24, with the world price of wheat falling 4.1pc in the second half, and CME soybean values dropping 15.5pc.

Ingham’s said it expected soybean meal prices to moderate into 2025 due to increased supply as a result of a growth in production in South America.

External feed volume sold from Ingham’s mills declined due to the full-year effect of its closure of its feedmill at Wanneroo in Western Australia in April 2023.

Internal feed costs increased $10.1M over FY24, and the group’s cost of sales increased $129.5M due to growth in volume, general cost inflation, and the conversion for $19M of a “significant number of grower contracts” from fixed to performance-based variable contracts.

These increases were partially offset by efficiencies and an improvement in operational performance.

Ingham’s major acquisitions in FY24 were the Bromley Park Hatcheries in New Zealand for $6.6M, and Bolivar, its primary processing facility in South Australia located in Adelaide’s northern suburbs.

Ingham’s paid $75.6M for the land and buildings at the previously leased site.

In WA, Ingham’s new Hazelmere distribution centre commenced operations in January, and has around double the capacity of its previous facilities.

In March, Ingham’s announced the acquisition of the Bostock Brothers organic chicken business in New Zealand for $35.3M, and the business was acquired on July 1.

Ingham’s also spent $9.3M on the northern New South Wales breeder triangle in the Casino district.

Four deboning machines installed

Ingham’s FY24 results report the installation all of its new deboning machines, two at its Murarrie plant in Brisbane, Queensland, one at Bolivar in SA, and one at Somerville on the Mornington Peninsula near Melbourne in Victoria.

The machines can debone 6000 legs per hour, and use an X-ray system to precisely measure each leg, and automatically adjust for each one in real-time.

Key benefits of the deboning machines are cited as improved labour efficiency, higher yield recovery, increased throughput, and improved product quality.

They contributed significantly to Ingham’s investment of $21.4M in automation equipment.

Source: Ingham’s