Ingham (ASX:ING) counts its chickens in Q1 update

• ASX 200-lister Inghams (ING) rose 14.6 per cent into the green today on the back of a “resilient” business update
• The chicken farmer’s share price went from a $3.07 low to a $3.29 high come lunchtime today, topping the benchmark index’s gainer’s list
• At Thursday’s annual general meeting (AGM) Chair Peter Bush said FY20 had been a year like no other for the business
• In today’s first-quarter update, Inghams revealed its core poultry sales volumes spiked 6.2 per cent compared to this time last year, and 7.5 per cent on the previous quarter
• The consumer stock also cited increased appetite from its customers, claiming the demand for its products has now settled near pre-COVID-19 levels
• Thanks to its robust financials, Inghams was able to upgrade its dividend payout band, meaning shareholders will yield between 60 and 80 per cent of the company’s net profit after tax (NPAT)
• Inghams shares are up nearly 15.1 per cent in early afternoon trade, worth $3.28

ASX 200-lister Inghams (ING) rose 14.6 per cent into the green today on the back of a “resilient” business update.

The chicken farmer’s share price went from a $3.07 low to a $3.29 high come lunchtime today, topping the benchmark index’s gainer’s list.

Ingham’s success followed its annual general meeting (AGM), where Chair Peter Bush and Chief Executive Jim Leighton spoke to the business’ performance in FY21’s first quarter.

“Financial year 2020 will no doubt go down for most of us as the most remarkable year on record,” the Inghams Chair said at Thursday’s AGM.

Over the period, Inghams’ core poultry sales volumes spiked 6.2 per cent compared to this time last year, and 7.5 per cent compared to the previous quarter.

The consumer stock also cited increased appetite from its customers, claiming the demand had now settled near pre-COVID-19 levels.

As the global pandemic hit the poultry market, Inghams was forced to reduce its inventory levels. Today, the company confirmed its inventory had shrunk by $16 million within the first 17 weeks of FY21.

Despite the reduction, there was a rise in feed costs over the September quarter. But Inghams believes it’ll be able to offset the rise by the second half of FY21. Ultimately, that’ll be realised in the chicken farmer’s cost of sales stats by the last quarter of the financial year.

Thanks to its robust financials, Inghams was able to upgrade its dividend payout band. Now, instead of shareholders receiving a portion of 60 to 70 per cent of the business’s net profit after tax (NPAT), they’ll receive between 60 and 80 per cent.

“We were pleased to be able to reward shareholders with a dividend when many companies chose to suspend in the face of COVID challenges,” Chair Peter Bush explained.

Rounding off today’s AGM address and business update, Managing Director and CEO Jim Leighton said Ingham’s five-year strategy helped it navigate this year’s considerable headwinds.

“It was incredibly fortunate to have this solid five-year plan in place for what has been a year like no other,” Jim told investors.

“Throughout our first year of implementing the plan, it has enabled us to deliver profitable results and remain dynamic and adaptable during a volatile trading environment. It’s proven its value,” he continued.

“It is my great pleasure, privilege and pride to continue to build upon the legacy of the Ingham’s name, heritage and brand,” he signed off.

Inghams shares are up nearly 15. per cent in early afternoon trade, worth $3.28 at 1:52 pm AEDT.