The Inghams Group Ltd (ASX: ING) share price is up 2% today after the poultry farmer announced it will build a new $46 million hatchery in Victoria, Australia.
The group's chief executive, Jim Leighton, said: "This significant investment demonstrates our commitment to all of our stakeholders in supporting infrastructure projects that deliver profitable growth".
The new hatchery is due for completion in 2020 and the company expects it will increase productivity and capacity in helping grow profits over the medium term.
In FY 2018 Inghams posted a net profit up 12.6% to $114.6 million on EBITDA of $212 million, which was up 8.7%.
The group paid a final dividend of 11.6 cents per share to take full-year dividends to 21.1 cents per share fully franked. This places it on a trailing yield of 4.45%. It trades on 14.4x trailing earnings per shares of 30.8 cents. Net debt stands at $145 million.
Inghams reports that it's well positioned to place to benefit from rising consumer demand for poultry products.
