Ingham’s reported a small drop in poultry sales volumes during the 2023 fiscal year, with volumes down in Australia but up in New Zealand.
The company released the results of FY 2023 on August 17.
Australia sales volumes
In Australia, core poultry volumes recorded a decline of 0.6% when compared to the previous year.
“The decline in volume in FY23 was driven mainly by lower bird numbers processed as a result of a small reduction in fertility levels from the performance of breeding roosters. During the second half, various measures implemented to address farming performance brought good improvements, with the positive performance trend continuing as 2H progressed,” the company stated in its earnings release.
However, price increases helped offset the drop in volume sold, giving the company a 12.2% increase in revenue for the year.
New Zealand sales volumes
In New Zealand, Ingham’s core poultry volume grew by 0.8% on a year-over-year basis, with volume growth in the second half rebounding from a decline during the first half. That drop during the first half, the company said, was due to an adjustment to egg settings in response to both significant labor availability and CO2 supply constraints at Ingham’s primary and further processing facilities.
Revenue in New Zealand increased 12.1%. Like was the case in Australia, pricing increases were made to offset increased input costs, including the cost of feed.
Executive commentary
For the fiscal year, Ingham’s recorded earnings before interest, taxes, depreciation and amortization (EBITDA) of AU$418.5 million, a 13% improvement over the previous year.
Commenting on the company’s performance during the fiscal year, Ingham’s CEO Andrew Reeves said: “Our FY23 results demonstrate the breadth and momentum of the operational recovery underway across the business. I am very pleased with the strong recovery, underpinned by the progressive return to normal operational performance levels across the business, with farming performance continuing to recover and supply chain conditions normalizing.
“During the course of FY23 we productively engaged with our customers to implement price increases across all channels. The price increases were necessitated by the significant increase in feed costs, and growth in other key input costs, with market demand for poultry that continues to outpace supply. In addition, we have continued to leverage growth channels that provide greater value, rationalizing our product range and maintaining our long-term focus on operational efficiency.
“Overall, the poultry sector remains attractive, underpinned by robust demand with key long-term trends intact. Our underlying business is in good shape, and our diverse network and integrated operating model provides a strong platform for earnings growth.”
