News

Ingham’s 1H22 core poultry sales up 5.6pc

Grain Central, February 21, 2022

Photo: Ingham’s

MAJOR poultry producer Ingham’s Group Limited has recorded an increase of 5.6 per cent in its core poultry sales to 237,100 tonnes in the six months to December 2021 compared with 1H21, according to the company’s interim results released on Friday.

In Australia, core poultry volumes grew by 6.5pc against a backdrop of COVID19 lockdowns and challenging market conditions.

Ingham’s feed revenue declined 2pc as customers transitioned supply away in preparation for the closure of Ingham’s feedmill in Western Australia.

Growth in Australian underlying earnings before interest, taxation, depreciation and amortisation (EBITDA) for the six months to December 2021 at $185.1 million was 0.3pc below the 1H21 result.

In New Zealand, core poultry volumes were flat on 1H21 as lockdowns were reintroduced.

NZ core poultry revenue increased 3.6pc, with price increases applied across all channels to help offset increasing feed costs and inflationary pressures related to supply chain disruption.

In line with Inghams’ commitment to sustainability, in November the Group’s Waitoa Free Range Chicken brand became New Zealand’s only independently certified producer of net carbonzero chicken.

The internationally recognised certification is the result of a stringent review process involving measuring the carbon footprint at every step of the supply chain from raw materials and production through to distribution and packaging.

Ingham’s said another strong wheat harvest in Australia has resulted in some recent price stabilisation, but ongoing strong global demand for Australian wheat due to supply shortages and adverse Northern Hemisphere weather conditions is expected to result in pricing remaining firm.

In the six months to December, poultry inventories increased by $45.8M due to an increase in the value of feed materials on hand which reflected higher volumes of grain procured directly from growers during the period.

Combined with recent increases in soymeal pricing, Ingham’s said it expected to see some increase in feed costs in 2H22.

“The company continues to hold between 39 months forward purchase cover on key feed ingredients.”

Source: Ingham’s

Grain Central: Get our free tri-weekly cropping news straight to your inbox – Click here

HAVE YOUR SAY

Your email address will not be published.

Your comment will not appear until it has been moderated.
Contributions that contravene our Comments Policy will not be published.

Comments

Get Grain Central's news headlines emailed to you -
FREE!