Inghams Group, Australia’s largest poultry producer, has revised its full-year profit forecast downwards, citing a substantial decline in earnings due to escalating costs. The company now anticipates underlying earnings for the 2024 financial year to be in the range of $180 million to $200 million. This is a decrease from the previous estimate of $215 million to $230 million. Inghams Group is a major Australian poultry company that produces and markets chicken and turkey products. The company operates processing plants and farms across Australia and New Zealand.
The revised forecast comes after a challenging first half of the year for Inghams, during which net profit experienced a significant drop. The company reported that net profit fell by 65 per cent to $18.1 million during this period. The primary driver behind the profit decline has been identified as increasing operational and input costs, which have put pressure on the company’s financial performance.
Despite the considerable decrease in net profit, Inghams has affirmed its commitment to shareholders by confirming a dividend payout. The company will distribute a dividend of 7¢ per share to its investors. This decision maintains Inghams’ payout ratio at 70 per cent, demonstrating its intent to continue rewarding shareholders even amidst financial headwinds.
The company will continue to monitor market conditions and adjust its strategies accordingly to mitigate the impact of rising costs and improve profitability in the coming periods. Investors will be keenly watching how Inghams navigates these challenges and whether it can achieve its revised earnings targets.
