Inghams: Strong Demand and Pricing Points to Better Fiscal 2024

Conditions are good for Inghams. At a trading update, the firm noted poultry prices are elevated, demand is strong, and operating performance across farming and processing continues to improve. Pricing momentum enjoyed in fiscal 2023 has continued into fiscal 2024. Average pricing increased quarter on quarter throughout fiscal 2023, with fourth-quarter 2023 average selling prices about 17% above the corresponding quarter in fiscal 2022. Management guided to first-half fiscal 2024 EBITDA of around AUD 247 million—18% higher than the prior corresponding period. While noting a likely weaker second half, due to normal seasonality and inflationary headwinds (particularly in labor), we lift our fiscal 2024 EBTIDA forecast by 19% to AUD 446 million.