Guess which ASX 200 share is crashing 15% despite doubling its first-half profits

Investors have seen something they don't like with this result.

| More on:
A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Inghams Group Ltd (ASX: ING) share price is having a difficult session on Friday.

At the time of writing, the ASX 200 share is down 16% to $3.61.

Investors have been hitting the sell button today despite the poultry producer releasing its half-year results and reporting the more than doubling of its profits.

ASX 200 share crashes on half-year results release

  • Revenue increased 8.7% to $1.64 billion
  • EBITDA up 28.8% to $253.7 million
  • Net profit after tax up 268.6% to $63.4 million
  • Underlying net profit up 107.5% to $69.3 million
  • Fully franked interim dividend up 167% to 12 cents per share

What happened?

For the six months ended 31 December, the ASX 200 share reported an 8.7% increase in revenue to $1.64 billion. This was driven largely by growth in net selling prices across all channels, reflecting increases implemented in response to increased costs.

Inghams' underlying costs grew by 6.9% due to higher internal feed costs and volume and inflationary factors. This was partially offset by efficiencies and an improvement in operational performance.

This ultimately led to Inghams reporting a 107.5% increase in underlying net profit after tax to $69.3 million, which allowed the company to lift its interim dividend by 167% to 12 cents per share.

Outlook

It may be the company's outlook commentary that is weighing on the Inghams share price today. Management said:

Inghams delivered a strong set of interim results for 1H24, in‐line with the trading update provided in October 2023. However, market conditions for consumers over 2H24 are expected to remain challenging, underpinning the shift already being seen toward in‐home dining (Retail) from out‐of‐home (QSR and Food Service) channels.

The ASX 200 share remains up 35% on a 12-month basis despite today's weakness.

Motley Fool contributor James Mickleboro 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 Scott Phillips.

More on Earnings Results

Delighted adult man, working on a company slogan, on his laptop.
Earnings Results

Bank of Queensland share price leaps 6% on improving outlook

ASX 200 investors are bidding up the Bank of Queensland share price on Wednesday.

Read more »

Photo of two women shopping.
Earnings Results

Premier Investments share price jumps 9% on results and demerger plans

The Smiggle and Peter Alexander owner has released its results. How did it perform?

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Earnings Results

Soul Patts share price struggles on falling profits

ASX 200 investment house Soul Patts reported its half year results this morning.

Read more »

a biomedical researcher sits at his desk with his hand on his chin, thinking and giving a small smile with a microscope next to him and an array of test tubes and beackers behind him on shelves in a well-lit bright office.
Earnings Results

Chemist Warehouse merger target Sigma reports 149% FY24 profit jump

This could be the last set of results from Sigma as we know it if its merger is approved.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Earnings Results

Brickworks share price tumbles on disappointing half-year loss

This loss didn't stop the company from increasing its dividend again.

Read more »

A man sits on a bench atop a mountain with a laptop, making investments with a green ESG mind.
Earnings Results

ASX All Ords stock KMD tumbles as interim dividend cancelled

Investors are hitting the sell button on ASX All Ords stock KMD today.

Read more »

Coal miner holding a giant coal rock in his hand making a circle with his hand, symbolising a rising share price.
Energy Shares

New Hope share price charges higher despite profit crunch and huge dividend cut

Weaker coal prices have hit this miner's profits and dividend hard.

Read more »

A Chinese investor sits in front of his laptop looking pensive and concerned about pandemic lockdowns which may impact ASX 200 iron ore share prices
Earnings Results

Liontown share price tumbles 7% on half-year results

This lithium developer's results have been released this afternoon.

Read more »