Ingham’s Group has lifted first-half profit 28.5 per cent to $84.4 million despite drought conditions significantly increasing the poultry producer’s costs.
The company on Thursday said profit for the six months to December 29 rose from $65.7 million in the prior corresponding period.
Total revenue rose 4.2 per cent to $1.257 billion.
The company’s jump in profit was in part driven by a three per cent increase in its core poultry volumes.
But that rise was offset by a $55.9 million rise in the company’s expenses – a jump of 4.9 per cent – and a fall in sales in the group’s animal feed production, with feed volumes sliding 13.7 per cent.
Ingham’s said the rise in feed costs and expenses was primarily driven by the current drought.
The company said it expects feed costs will remain high through to the start of the next harvest in December.
The company said it would continue to make every effort to offset any further cost increases where possible.
‘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,’ chief executive Jim 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.’
Ingham’s shares had fallen 3.41 per cent to $4.25 by 1109 AEDT after the company cut its dividend by half a cent to 9.0 cents per share, fully franked.
INGHAM’S POSTS H1 PROFIT
* Net profit up 28.5pct to $84.4m
* Revenue up 4.2pct to $1.257b
* Fully franked interim dividend down 0.5 cents to 9.0 cents