Inghams Group Limited has announced its financial results for FY24, reporting a 68% lift in net profit to $101.5m and revenue up 7.2% to $3.3bn. EBITDA of $471.1 million was up 12.6% increase on the year.

"Retail volumes experienced growth...as consumers responded to cost-of-living pressures by increasing the frequency of in-home dining, which was partially offset by a reduction in volumes in QSR and other out-of-home channels," Inghams said in its results announcement.

"Revenue increased 7.2% to $3.3 billion, driven by the growth in core poultry volume and higher core poultry net selling prices ($/kg) (NSP) of 5.4% following price increases implemented in FY23 and FY24 in response to the significant cost increases borne by the business due to the current inflationary environment."

Inghams CEO and Managing Director, Andrew Reeves, said: “In FY24, Inghams has delivered its highest earnings on an Underlying pre AASB 16 basis since listing in 2016. Our strong results are underpinned by volume growth, improved margins, and good cost control and operational outcomes across both farming and processing. The key long-term fundamentals supporting the poultry sector remain in place, with poultry continuing to be the affordable protein of choice for consumers.”

Inghams has also announced the in-principle renewal of its multi-year supply agreement with Woolworths in Australia. The company completed several important investments during the year, focusing on capability, capacity, and network resilience. Two key network-related acquisitions were completed in FY24.

The company's automation investment program saw the installation of its four new leg deboning machines completed towards the end of the first half of FY24. Total capital expenditure and acquisitions during the period amounted to $168.3 million. Net debt increased by $85.4 million versus PCP to $347.9 million due to various processing equipment, business and property acquisitions completed during the period.

Inghams declared or paid total fully franked dividends of 20.0 cents per share, representing a growth of 37.9% on PCP and a payout ratio of 73.1%. The company's net debt stood at $347.9 million, with a leverage of 1.5x.

The Board declared a fully franked final dividend of 8.0 cents per share.

Looking ahead to FY25, based on normalised FY24 (52-week) results, Inghams provides the following guidance: Core poultry volume growth: -1% to -3%, Underlying EBITDA (pre AASB 16): $236 million to $250 million (representing flat to ~6% growth). Capital expenditure of approximately $100 million is forecast for FY25, excluding the Bostock acquisition which will settle during 1H25.