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Ingham’s profit rises despite costly drought

Inghams3Australian poultry producer Ingham’s Group has reported a rise in first-half profit of 28.5 per cent to $84.4 million, up from $65.7 million on the same period the year prior, despite the drought impacting heavily on costs.

Total revenue for the group was up 4.2 per cent to $1.257 billion, with a jump in profit partly driven by an increase in its core poultry volumes.

But this was offset by a 4.9 per cent rise in the company’s expenses and a fall in sales in the group’s animal feed production.

The company reported a rise in feed costs and expenses driven by the drought and expects these costs to remain high for the course of this year.

Ingham’s chief executive Jim Leighton said overall the results are “pleasing” and reflect further progress on “strategy implementation and continued demand for Ingham’s products”.

“It is very pleasing to see the progress we have made reflected in continued volume growth and improving earnings despite the significant increases of our feed costs,” Leighton said in a statement.

“(The) results reflect positively on our ability to deliver against commitments while at the same time further formalising our go-forward plans for consistent profitable growth.”

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