Inghams Group Limited (ASX: ING) produces poultry products. The company offers production, processing, and distribution of chickens, turkeys, stock feed, and other meat products. Inghams Group serves retailers throughout Australia and New Zealand.
The company has stated via a release that it will be constructing a new poultry hatchery facility in Victoria which will cost $46 million. This new facility will replace the old facility and will lead to an improved output & capacity so that it can meet the expected growth in demand of the Australian market.
The group’s CEO, Jim Leighton has said that this significant investment in the core business of the company is indicative of the fact that management is committed enough toward the stakeholders to deliver the growth in the times to come with the adequate support of infrastructure projects. The above-mentioned hatchery facility shall be constructed by the end of 2020. The poultry hatchery would involve & employ around 100 personnel at the time of construction and going further would provide 20 jobs after it gets completely operational.
The firm has via an earlier release said that the shareholders would be returned their capital to the tune of ~$125 Million, i.e., $0.33 per share post approval by the shareholders in an EGM which’s to be held on 6th December 2018. If approved by the shareholders, the same will be paid to the shareholders by 18th December 2018. The record date set for determining entitlement is 7.00 pm (Sydney Time) on 11 December 2018. The company also stated that Jim Leighton has officially commenced the role of MD & CEO of the firm from 14th of November 2018.
The company has posted an underlying EBITDA of $208.9 Mn for the FY 2018 vis-à-vis $195 Mn which implies a growth of 7.1% on a PCP. This was driven by the increase in the volume of core chicken and turkey sale. Also, EBITDA for the Australia segment improved due to the efficiency attained on account of the automation initiatives taken and the passing on of operational cost escalations in feed & utility costs by way of regular price increases.
Further, the management estimates that the demand for poultry products will continue to grow, the strategy implementation remains on track and the opportunity pipeline is strong. It expects a continuation of market price increases, reflecting increases in energy and feed costs. It’s expected that the New Zealand market remains challenging on account of stiff competition and will remain the same in the upcoming future.
Meanwhile, the share price of the company has risen by 9.55 percent in the past six months as on 4 December 2018. ING’s shares traded at $4.45, up by 2.064 percent with a market capitalization of circa $1.66 billion as on 5 December 2018 (AEST 03:26 PM).
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