The Inghams Group Ltd (ASX: ING) share price is currently up 3.45% today, trading at $3.74 at the time of writing.
The jump follows release of the company’s half-year results for the period ended 26 December 2020 (1H FY21).
Let’s look at the update from the chicken and turkey products provider.
What did Inghams report?
In today’s 1H FY21 earnings release, Inghams reported a statutory net profit after tax (NPAT) of $35.3 million, up 34.7% compared to the prior corresponding period (pcp). The company’s underlying NPAT was $37.5 million, up 28.4% over the pcp.
Cash flow from operations came in at $181.9 million during the half.
Inghams posted a group core poultry volume growth of 4% on the pcp. The company advised that this reflects a strengthened demand across most channels and the return of overall trading volumes to pre COVID-19 levels.
The board declared an interim dividend of 7.5 cents per share, up 2.7% compared to the pcp. The interim dividend represents a payout ratio of 74.3% of Inghams’ underlying NPAT.
Commenting on the 1H FY21 performance, CEO and Managing Director Jim Leighton said:
Today’s results are a testament to the great work of our team and their execution of our five-year strategic plan and the resilience in demand for poultry.
These results have been delivered despite the continued impact of COVID-19, ongoing high realised feed prices and the partial closure of Australia’s poultry export channels due to industry Biosecurity issues in Victoria. Our strategy is driving performance and delivering improved returns.
Outlook for Inghams
The company advised it will continue to progress its five-year strategy going forward, however, ongoing volatility remains due to COVID-19 and the potential re-opening of some Australian export markets.
The net impact of lower feed prices is expected to be modest in the second half, and the company also advised it expects the second half of FY21 to experience normal seasonal influences.
Snapshot of the Inghams share price
Ingham has a current market capitalisation of $1.3 billion with 371.5 million shares outstanding.
Over the past 12 months, the Inghams share price has remained relatively flat, gaining a modest 4% on this time last year.