Category: Australia

ASX RELEASE

 

Ingham’s responds to AFR article (4 September 2017)

(5 September 2017) Inghams Group Limited (ASX: ING, Ingham’s) notes the article published on page 21 in The Australian Financial Review on Monday 4 September 2017 (Bulls and Bears: Why some investors are too chicken for Ingham’s) and is concerned that it contains potentially false and misleading claims, in that :

1. There is no price war in Victoria that we are aware of (or in any other state), and normal market conditions prevail consistent with commentary provided with the FY17 Full Year Results on 22 August 2017.

2. Ingham’s is not currently subject to any significant dispute with growers or grower groups outside the normal course of business. With more than 225 contract growers across our operations, ongoing renegotiation of grower contracts is a normal part of business and we are constantly finalising new agreements with growers.

3. In Victoria the vast majority of growers are contracted on multi-year contracts extending to at least mid- 2019. Discussions with Victorian growers are expected to continue in the context of a Victorian market experiencing a surplus of broiler farm capacity as a result of a competitor plant closure and a reducing Victorian share of national production over the last decade. We remain committed to working with all stakeholders to establish a viable future for the Victorian industry.

4. We note that Mr Michael Vukadinovic, who is quoted in the article, is not a contracted Ingham’s grower and to our knowledge has never been an Ingham’s grower.

5. This matter will now be referred to the Australian Securities and Investment Commission.

ends

Veneta Chapple M: + 61 (0) 455 372 311 | E: vchapple@inghams.com.au

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Media Statement

 

Statement on critically important antibiotics

(25 August 2017) Inghams Group Limited confirms that all our chicken products are produced without the use of any critically important antibiotics as defined by the World Health Organization (WHO).

WHO classifies antibiotics for human medicine into categories of importance — the more important an antibiotic is, the more essential it is to reduce its use to limit any antibiotic resistance developing.

At Ingham’s, we are proud of our leadership position on quality, animal welfare and the ongoing development of our supply chain to meet current and future customer needs.

ends

Veneta Chapple M: + 61 (0) 455 372 311 | E: vchapple@inghams.com.au

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ASX Release

 

Inghams Group Limited Full Year Financial Results FY2017

Financial highlights FY17 (compared to FY16)

• Pro forma poultry volumes 495.3kt, up 11.5%
• Pro forma revenue $2,383.9m, up 3.3%
• Pro forma EBITDA $195.0m, up 16.4%
• Pro forma net profit after tax $102.0m, up 22.8%
• Statutory net profit after tax $59.1m, up 134.5%
• Pro forma net debt of $297.7m, EBITDA to net debt 1.5x
• Final dividend 9.5 cents per share, fully franked

(22 August 2017) Inghams Group Limited (ASX: ING, Ingham’s), Australia and New Zealand’s largest integrated poultry producer, today announced its statutory financial results for the 53 weeks ended 1 July 2017 including pro forma results for the 52 weeks ended 24 June 2017.

Key highlights

• Performance exceeded prospectus forecasts
• Strong volume growth in Australia driven primarily by retail and QSR demand
• Improved New Zealand trading conditions and performance in the second half
• Project Accelerate initiatives delivering as expected
• Continued progress in extending key customer contractual coverage
• Further investment in capability including key people, technology and capital assets
• Capital investment program on track, expanding capacity and improving efficiency

Inghams Group Limited CEO Mick McMahon said “FY2017 was a landmark year in Ingham’s long and proud history following its listing on the Australian Stock Exchange on 7 November 2016.

“The Group has delivered against prospectus forecast, supported by good progress on implementing our strategy. Our results reflect continued strong demand for Ingham’s quality products supported by consumer preference for great value, healthy and versatile poultry products.

“Overall poultry volumes increased 11.5% (7.5% for core chicken and turkey products), with stronger than expected growth in Australia and improving New Zealand volume growth in the second half,” Mick McMahon said.

Group pro forma revenue growth of 3.3% reflected the growth in volumes, partially offset by the deflationary effect of feed costs and changes to poultry sales mix.

Pro forma gross profit increased 8.1% to $456.8M driven by volume growth and progress on implementation of Project Accelerate initiatives, including increased automation of primary processing plants, labour productivity, procurement efficiencies and network rationalisation including the closure of the Cardiff plant.

Group pro forma EBITDA increased 16.4% to $195.0m versus prospectus forecast of $190.1m.

Pro forma net debt reduced to $297.7m with very strong operating cash, supported by working capital improvements and cash from the sale of surplus properties.

Significant investment continues to be made in capacity expansion with the expanded Murraylands hatchery and Monarto breeder farm complex in South Australia now operational. Additional breeder capacity at Yumali (SA) is nearing completion and construction of a new SA feedmill is progressing on schedule.

The costs of the Group’s IPO and pre-IPO restructuring initiatives previously disclosed were reflected in the statutory net profit after tax of $59.1m.

Mick McMahon said “It was a busy period with strong volume growth, strategy implementation and significant capital investment all underway while listing as a public company.

“It is very pleasing to see the progress we have made reflected in volume growth and improved financial performance, especially our strong cash generation and reduction in net debt,” he said.

Dividends
The Board of Inghams Group Limited has declared a fully franked final dividend of 9.5 cents per share to be paid on 4 October 2017, bringing the total dividend for FY2017 to 12.1 cents per share.

The total dividend represents ~70% of post-IPO pro forma net profit after tax (NPAT).

Outlook
Continued growth in poultry volumes is expected, with Australian volume growth expected to align more closely with historical trends as we cycle a number of customer EDLP initiatives, while the improved New Zealand second half performance has continued into FY2018.

Implementation of Project Accelerate remains on track with further benefits expected from automation, labour productivity and procurement initiatives underway, as well as benefits to be captured as we rebalance the supply chain the following rapid volume growth in FY2017.

Project Accelerate benefits, supported by energy efficiency initiatives and recovery of increased costs via market pricing, are expected to help offset increasing electricity prices.

The effect of increasing feed prices over recent months is expected to be mitigated by forward cover arrangements (of approximately 9 months), feed cost pass through mechanisms in place with customers (covering approximately 60% of Australian volume) and market recovery of increased prices over time.

In recent weeks the market has seen price increases off the back of increasing costs.

Some further asset sales are expected to improve cash flow, reduce debt and help offset the cost of further restructuring initiatives.

Capex levels are expected to reduce from the FY2017 peak although further opportunities to invest in the business may arise with increased focus on identified opportunities in farming, further processing, commercial feed sales and measured growth in exports.

A strategic review of the commercial stock feed business (third party feed sales) has commenced and will consider options to grow shareholder value.

ends

All numbers are pro forma, unless labelled otherwise. A reconciliation from Statutory EBITDA to pro forma EBITDA and Statutory NPAT to pro forma NPAT is included in the Appendix.

Veneta Chapple M: + 61 (0) 455 372 311 | E: vchapple@inghams.com.au

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Sydney (30 May 2017): Inghams Group Limited (ASX: ING), Australia and New Zealand’s leading poultry producer, announced today that it had extended its national agreement as the majority supplier of poultry products to Woolworths supermarkets in Australia until mid-2021.

CEO and Managing Director Mick McMahon said: “This agreement extends our supply relationship with Woolworths to over 60 years and supports our investment in capability and capacity to meet market growth and demand for Ingham’s quality products.”

The extension is part of Ingham’s ongoing strategy of formalising long term supply relationships with major customers where appropriate.

Mr McMahon said: “Long term supply agreements with major customers now account for over 65% of Australian poultry volumes with average remaining tenure exceeding 3 years.”

ends

Veneta Chapple M: + 61 (0) 455 372 311 | E: vchapple@inghams.com.au

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MEDIA RELEASE

 

Ingham’s plans for growth in WA

Perth (15 May 2017): Inghams Group Limited, Australia’s leading poultry producer, announced today that as part of its national network plan it is expanding its Western Australian operations generating an estimated 400 additional permanent jobs in the local economy.

In line with Ingham’s planned business strategy, Ingham’s Chief Commercial Officer Quinton Hildebrand said Ingham’s is expanding its farming, milling and processing volumes over the next three years enabling it to meet local market demand with locally grown Ingham’s quality poultry products.

Existing facilities at Wanneroo will be relocated to allow for the expansion with a new state-of-the-art feedmill to be built at Muchea outside of Perth by 2020. A new hatchery will also be developed at a site yet to be finalised.

More than $70 million is expected to be invested by Ingham’s and contracted partners as part of this expansion creating an estimated 400 permanent jobs through the supply chain.

In addition to the permanent jobs created, Ingham’s estimates more than 1000 indirect jobs will be generated due to the expansion with dozens more jobs created during the construction phase.

Ingham’s has recently contracted new growers and increased the shedding capacity of existing growers in WA to help build capacity in the region.

Mr Hildebrand said: “To support this WA expansion strategy, Ingham’s will commence the sale of our site in Wanneroo where the existing hatchery and feedmill are located. Leaseback arrangements will be part of the sale conditions to cover the construction period for our new facilities.”

He said he was encouraged with the support the company had received from all levels of government and the Wanneroo community on its relocation strategy.

“Ingham’s looks forward to continuing to work closely with stakeholders to support our continued investment in WA and ensure that our operations in Wanneroo have minimum impact on the community for our remaining period there.

“We are pleased to be able to continue to invest in the sustainable growth of our company, and in doing so create jobs and opportunities in WA,” Mr Hildebrand said.

Ingham’s has appointed CBRE as selling agent for the Wanneroo site.

ends

Veneta Chapple M: + 61 (0) 455 372 311 | E: vchapple@inghams.com.au

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ASX ANNOUNCEMENT

  15 February 2017

Inghams Group Limited Half Year Financial Results FY2017

Inghams Group Limited (ASX: ING, Ingham’s), Australia and New Zealand’s largest integrated poultry producer today announced its financial results for the half year ending 24 December 2016 (1H FY2017). Financial Results (and comparison to 1H FY2016)

• Poultry volumes of 248kt, increased 12.9%
• Pro forma Revenue of $1,227.2m, increased 4.3%
• Pro forma EBITDA of $95.2m, increased 9.1%
• Pro forma NPAT of $51.3m, increased 13.8%
• Statutory NPAT of $9m, decreased 54%
• Pro forma Net Debt of $403.4m, a decrease from net debt level at listing
• ‘Stub’ Dividend (fully franked) of 2.6cents per share

Note: A reconciliation from Statutory NPAT to pro forma NPAT is included in the Appendix. Key Highlights

• First half performance in line with prospectus forecasts
• Strong volume growth in Australia driven primarily by Retail and QSR customers
• Results delivered despite challenging New Zealand market conditions, driven by oversupply
• Project Accelerate initiatives delivering as expected

– first phase automation projects operational in Primary Processing plants – closure of the Cardiff plant in NSW complete, and volumes transferred – good progress on labour efficiency, procurement and other initiatives

• Continued progress in extending key customer contractual coverage
• Further investment in capability — operations, category, marketing and new product development (NPD) resources
• Capital investment in capacity and efficiency on track, with activity peaking in 1H

– commissioned South Australia hatchery and breeder expansions

Ingham’s Group CEO Mick McMahon said, “The results for the Group are in line with prospectus forecasts and reflect strong demand for Ingham’s quality products, with our customers continuing to invest in chicken as the healthy and competitive protein.” At a Group level total poultry volumes increased 12.9% for the period (9.0% for core chicken and turkey lines, excluding ingredients), with stronger than expected growth in Australia, driven primarily by growth in Retail and QSR customer segments as demand for chicken continues to grow compared to other animal proteins given its affordability and versatility. New Zealand volumes were flat in a challenging market, driven by reduced industry export volumes translating to domestic oversupply. Group Revenue increased 4.3% as a result of the increased volumes, feed cost deflation and changes in sales mix. Gross Profit increased 9.0% to $229.0M driven by volume growth and good progress on implementation of Project Accelerate initiatives covering automation, labour productivity, procurement, network rationalization and other initiatives. The program continues on schedule and the benefits are being realized in line with our expectations in the prospectus forecast. Pro forma EBITDA increased 9.1% to $95.2m for the half, while pro forma NPAT increased 13.8% to $51.3m. Statutory NPAT was $9m reflecting the costs of IPO and restructuring initiatives previously disclosed. While cash flow improved and inventory levels reduced for the half, working capital increased due to revenue growth and the timing of the half year close impacting receivables, in line with expectations. Net Debt reduced from the level at listing to $403.4m, despite capital expenditure peaking in the half, and is expected to reduce further by end FY17. Significant investment continues to be made in capacity expansion and capability, with the first stage of Project Accelerate automation initiatives now complete. In South Australia, the expanded Murraylands hatchery is operational, the addition of breeder capacity is progressing to schedule and work has commenced on the construction of a new feed mill. The company has continued to strengthen key areas of operations, marketing, category management and NPD in support of its strategy. The Board declared a fully franked ‘stub’ dividend of 2.6 cents per share (record date 10 March 2017, payment date 5 April 2017). The dividend represents 65% of post IPO NPAT. “It has been a very busy period with strong volume growth, implementation of major changes and significant capital investment, all occurring while transitioning to a publicly listed company. It is pleasing to see the progress made reflected in improved financial performance,“ said Mr. McMahon. FY2017 Outlook The company reconfirms that its FY17 prospectus forecast of $98.8M pro forma NPAT is expected to be achieved based on the current trading outlook. Australian volume growth is expected to moderate as we cycle a number of EDLP initiatives by customers in the second half, and will be broadly in line with the prospectus forecast for the full year. Progress continues on extending key customer contractual coverage. One key QSR customer agreement remains under negotiation. New Zealand trading conditions are likely to continue in the second half. Project Accelerate implementation and investment is continuing and expected to contribute to earnings growth over future years. Capital expenditure will reduce in the second half. Pro forma net cashflow expected to be in line with prospectus forecast, reflecting strong second half cashflow, further reducing net debt and leverage. The company reconfirms its intention to pay fully franked dividends of 65 — 70% of pro forma NPAT. Ends. About Ingham’s Ingham’s is Australia and New Zealand’s leading integrated poultry producer supplying leading retail, quick service restaurant and food service customers, processing 4 million birds per week and employing more than 8,000 people. Ingham’s operations include 10 feedmills, breeder and boiler farms, 11 hatcheries, seven primary processing plants, seven further processing plants and nine distribution centres. Ingham’s was founded in Sydney in 1918 by Walter Ingham and listed on the Australian Stock Exchange in November 2016. Media contact Veneta Chapple M: + 61 (0) 455 372 311 E: vchapple@inghams.com.au   [actionbutton text=”Download Announcement” link=”https://inghams.com.au/wp-content/uploads/2017/02/ASX-Announcement-1H-FY2017.pdf” theme=”dark” target=”_blank”]

MEDIA RELEASE

 

Ingham’s marks public milestone

After nearly 100 years under private ownership, Australia and New Zealand’s largest vertically integrated poultry business — Ingham’s — today listed its securities on the Australian Stock Exchange (ASX:ING).

Ingham’s is a well-recognised brand with a long history of success in the poultry industry.

It was established by Walter Ingham in Sydney in 1918 and grown by two further generations of the Ingham family before being purchased by private equity group TPG in June 2013.

Ingham’s CEO Mick McMahon said: “The board is pleased to have achieved this significant milestone in the history of the company.

“We look forward to building on the company’s history of success, strong industry fundamentals, and potential growth opportunities in the years ahead.”

Ends

Media contact

Veneta Chapple
M: + 61 (0) 455 372 311
E: vchapple@inghams.com.au

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MEDIA RELEASE

 

Ingham’s Bolivar plant cleared for operation

Australasian poultry producer Ingham’s confirmed today that an ammonia leak was detected at its Bolivar processing facility at Burton in South Australia this morning at around 1:30am.

Primary Processing Director Jonathan Hutchings said that no one was harmed as a result of the incident.

“As a precaution we asked attending emergency services to check on the welfare of our six employees and we are very pleased that no one was harmed in anyway,” he said.

Mr Hutchings said the Bolivar site was attended to by the Metropolitan Fire Service and was cleared for operation and would operate as normal today.

The leak occurred in part of the plant which was undergoing maintenance.

Ends

Media contact

Veneta Chapple
M: + 61 (0) 455 372 311
E: vchapple@inghams.com.au

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