Inghams Earnings: Beholden to the Supermarkets

Inghams’ fiscal 2024 result was a considerable improvement on fiscal 2023, with underlying net profit lifting 43% to AUD 102 million—about 6% below our forecast. Net selling prices lifted across all channels, about 5% on average, much of it a consequence of higher costs flowing through. Feed prices remain elevated, albeit moderating from recent record highs. Labor, utilities, ingredients, and maintenance costs have all increased ahead of general inflation. Commensurate price increases—which are notoriously slow to respond—are beginning to flow through.