Inghams (ASX:ING) share price leaps 7% as FY21 profits double

Why this Aussie food producer's shares are flying this morning

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Editors Note: An earlier version of this article stated that the final dividend declared by Inghams was 16.5 cents, as was initially reported by the company. As stated in a correction that was subsequently released to the market by Inghams, the true final fully franked dividend will be 9 cents per share. This article has been amended to reflect this correction.

The Inghams Group Limited (ASX: ING) share price is climbing on Friday after the company reported its latest full-year result.

In early trade, shares in the poultry producer are up 7.6%, trading at $4.19.

Inghams share price flies as net profit doubles

Ingham's this morning provided its results for the year ended 30 June 2021 (FY21). Some of the key takeaways include:

The Inghams share price is climbing higher on the result with investors bidding up the Aussie food producer's shares in early trade.

What happened in FY21 for Inghams?

Ingham's reported core poultry volume growth of 4.2% with overall trading volume now ahead of COVID-19 trading levels.

Solid sales volumes throughout the year underpinned this morning's earnings figures. This, combined with operational efficiencies, net feed cost benefits and frozen poultry inventory reductions, helped boost earnings.

Ingham's reported solid performance across each of its Retail, QSR, Food Service and Wholesale segments. Australian export volumes were lower in part due to the impact of bird flu in some farms outside the Inghams network.

What did management say?

CEO and managing director Andrew Reeves was positive in today's release, saying:

These strong financial results are underpinned by solid poultry volume growth and a recovery across the majority of our key channels during the year.

Operationally, we are in a strong position and our optimisation strategy has made a positive contribution to the results we have delivered.

What's next for Inghams and its share price?

Inghams is focused on its optimisation program including 320 improvement project opportunities in FY22. The company's Auckland processing facility is also scheduled for completion by 31 December 2021.

The Inghams share price was up 23.0% prior to Friday's open and is outperforming the S&P/ASX 200 Index (ASX: XJO) in the year to date.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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