Insights

Inghams (ASX:ING) share price leaps 7% as FY21 profits double

Why this Aussie food producer’s shares are flying this morning
The post Inghams (ASX:ING) share price leaps 7% as FY21 profits double appeared first on The Motley Fool Australia. –

The Inghams Group Limited (ASX: ING) share price is climbing on Friday after the company reported its latest full-year result.

In early trade, shares in the poultry producer are up 7.6%, trading at $4.19.

Inghams share price flies as net profit doubles

Ingham’s this morning provided its results for the year ended 30 June 2021 (FY21). Some of the key takeaways include:

Revenue up 4.4% on the prior corresponding period (pcp) to $2,668 million
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) up 9.6% on pcp to $448.7 million
Statutory net profit after tax (NPAT) up 107.7% on pcp to $83.3 million
Total dividends up 17.9% on pcp to 16.5 cents per share, representing a 71% payout ratio.

The Inghams share price is climbing higher on the result with investors bidding up the Aussie food producer’s shares in early trade.

What happened in FY21 for Inghams?

Ingham’s reported core poultry volume growth of 4.2% with overall trading volume now ahead of COVID-19 trading levels.

Solid sales volumes throughout the year underpinned this morning’s earnings figures. This, combined with operational efficiencies, net feed cost benefits and frozen poultry inventory reductions, helped boost earnings.

Ingham’s reported solid performance across each of its Retail, QSR, Food Service and Wholesale segments. Australian export volumes were lower in part due to the impact of bird flu in some farms outside the Inghams network.

What did management say?

CEO and managing director Andrew Reeves was positive in today’s release, saying:

These strong financial results are underpinned by solid poultry volume growth and a recovery across the majority of our key channels during the year.

Operationally, we are in a strong position and our optimisation strategy has made a positive contribution to the results we have delivered.

What’s next for Inghams and its share price?

Inghams is focused on its optimisation program including 320 improvement project opportunities in FY22. The company’s Auckland processing facility is also scheduled for completion by 31 December 2021.

The Inghams share price was up 23.0% prior to Friday’s open and is outperforming the S&P/ASX 200 Index (ASX: XJO) in the year to date.

The post Inghams (ASX:ING) share price leaps 7% as FY21 profits double appeared first on The Motley Fool Australia.

Should you invest $1,000 in Inghams right now?

Before you consider Inghams, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Inghams wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

How the Inghams (ASX:ING) share price responded last earnings season
These are the 10 most shorted ASX shares

These are the 10 most shorted ASX shares

These are the 10 most shorted ASX shares

These are the 10 most shorted ASX shares

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
Trade The US Market With ZERO Brokerage* + FREE Access To Trading Ideas & Value Analysis Tools. Click Here!