Here's why the Inghams (ASX:ING) share price is on the rise today

The Inghams share price is up this afternoon following the company's half year results. Here's a closer look at the company's recent performance.

| More on:
three building blocks with smiley faces, indicating a rise in the ASX share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Inghams Group Ltd (ASX: ING) share price is currently up 3.45% today, trading at $3.74 at the time of writing.

The jump follows release of the company's half-year results for the period ended 26 December 2020 (1H FY21).

Let's look at the update from the chicken and turkey products provider. 

What did Inghams report?

In today's 1H FY21 earnings release, Inghams reported a statutory net profit after tax (NPAT) of $35.3 million, up 34.7% compared to the prior corresponding period (pcp). The company's underlying NPAT was $37.5 million, up 28.4% over the pcp.

Cash flow from operations came in at $181.9 million during the half.

Inghams posted a group core poultry volume growth of 4% on the pcp. The company advised that this reflects a strengthened demand across most channels and the return of overall trading volumes to pre COVID-19 levels.

The board declared an interim dividend of 7.5 cents per share, up 2.7% compared to the pcp. The interim dividend represents a payout ratio of 74.3% of Inghams' underlying NPAT.

Commenting on the 1H FY21 performance, CEO and Managing Director Jim Leighton said: 

Today's results are a testament to the great work of our team and their execution of our five-year strategic plan and the resilience in demand for poultry.

These results have been delivered despite the continued impact of COVID-19, ongoing high realised feed prices and the partial closure of Australia's poultry export channels due to industry Biosecurity issues in Victoria. Our strategy is driving performance and delivering improved returns.

Outlook for Inghams

The company advised it will continue to progress its five-year strategy going forward, however, ongoing volatility remains due to COVID-19 and the potential re-opening of some Australian export markets.

The net impact of lower feed prices is expected to be modest in the second half, and the company also advised it expects the second half of FY21 to experience normal seasonal influences.

Snapshot of the Inghams share price

Ingham has a current market capitalisation of $1.3 billion with 371.5 million shares outstanding.

Over the past 12 months, the Inghams share price has remained relatively flat, gaining a modest 4% on this time last year.

Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Woman on the phone at a hardware store.
Broker Notes

Up 21% this year, how much further upside does Macquarie tip for Metcash shares?

Metcash shares tick many boxes for investors.

Read more »

A young couple sits at their kitchen table looking at documents with a laptop open in front of them.
Opinions

Why I'd buy these top ASX 200 shares next

Growing businesses are compelling. These two are growing significantly.

Read more »

Smiling man with phone in wheelchair watching stocks and trends on computer
Share Market News

5 things to watch on the ASX 200 on Tuesday

A much better session is expected for Aussie investors today.

Read more »

Unsure man analysing data on laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a rough start to the week this Monday.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Broker Notes

Guess which popular ASX 200 stock Bell Potter just downgraded

Let's see what the broker is saying on this blue chip.

Read more »

Crude oil barrels rocketing.
ETFs

Why did the BetaShares Crude Oil ETF just spike 4%?

This ETF is attracting buyers in today's seller's market.

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

Woman with an amazed expression has her hands and arms out with a laptop in front of her.
Share Gainers

Why BWP, Metcash, Resolute Mining, and SHAPE shares are pushing higher today

These shares are starting the week on a positive note. But why?

Read more »