Chicken producer Inghams (ASX:ING)
has felt the pain from the Omicron wave across the east side of the country with staff shortages putting downward pressure on its sales performance.
The poultry producer said the staff shortages are now having a significant impact on the Australian supply chain, operations, logistics and sales performance of Ingham’s, and some of its suppliers and customers. This has disrupted production and distribution capability and impacted sales. All of Ingham’s major Australian sites are operational and have not experienced significant on-site transmission of Covid.
“Following the Covid issues we faced in calendar 2021, the recent Omicron surge in Australia has presented unprecedented challenges to Ingham’s Australian business, with many Ingham’s employees being forced to isolate at home due to contracting Covid in the community or as a result of being close contacts,” said Ingham’s chief executive officer Andrew Reeves.
Inghams said operational changes are being made to volume and mix across Ingham’s Australian business and it is not currently possible to predict how long this disruption will continue.
“The operational and trading difficulties have resulted in significant operational inefficiency, additional costs and the temporary suspension of a number of Ingham’s products. Ingham’s is working closely with our customers and we are focused on supplying as much product as possible to customers while the current disruption continues.”
"We will continue to closely manage our working capital and inventory and seek to implement initiatives to minimise the financial and other impacts of Covid through the second half.”
Shares are Ingham’s (ASX:ING)
trading 6.8 per cent lower at $3.29.