Inghams (ASX: ING)Share Price and News
About Inghams
Inghams Group Limited is an Australian-based food company primarily engaged in poultry production and processing. Inghams produces a wide range of fresh and frozen poultry products, serving both retail and foodservice markets across Australia and New Zealand.
Inghams Company History
Inghams traces its origins back to 1918 and was a family-owned poultry business for several decades. Over time, it expanded into turkey and stockfeed and became a supplier towards major retail and quick service restaurants. Chicken is a popular food option because it is cheaper and healthier than red-meat. 70% of Australian families have it at least 3 times a week.
The company was sold to private equity giant TPS in 2013 and went public in 2016. TPS sold roughly half its stake at listing and gradually sold it down once the escrow period expired, exiting for good in 2020. The aftermath of the pandemic has proven challenging for Inghams as it battles cost inflation.
Despite good FY24 results, including a $101.5m profit, 68% above FY23, investors were spooked about warnings of growing costs and its forward guidance for FY25 that that poultry volume growth would be between 1 and 3% lower than the year before, while EBITDA would be flat at best, 6% backwards at worse. The company met that guidance in 1H25 and has confirmed it is on track to reach that for the full FY25
Future Outlook of Inghams (ASX: ING)
Inghams is poised for a steady future, with positive growth drivers aligned to its strategic goals. The demand for poultry is expected to remain strong, fuelled by health-conscious eating trends and population growth in key markets. However, rising input costs (e.g., feed) and climate impacts on supply chains could pose challenges.
Inghams is investing in new facilities and technologies, such as plant-based protein initiatives, to diversify its product range and reduce environmental impact. These efforts position the company well for future market shifts.
But in the short-term, managing inflation will be a challenge.
Is ING a Good Stock to Buy?
Inghams stock presents an attractive proposition for investors seeking stable returns in the consumer goods sector. Here's a breakdown of key investment considerations. Inghams' current valuation is competitive relative to its earnings potential, making it an appealing option for conservative investors.
While not a high-growth stock, it offers solid dividends and stability. Inghams has a history of paying reliable dividends, supported by its robust cash flows. The dividend yield is attractive, especially for income-focused investors. The stock comes with moderate risk due to exposure to fluctuating commodity prices and potential regulatory shifts.
However, Inghams' strong market position and consistent earnings provide some mitigation. While growth prospects are tempered by industry challenges, Inghams' efforts to innovate and diversify – including its expansion into plant-based proteins – could provide upside in the long term. Analysts have generally rated Inghams as a “Hold,” with some upgrades due to its attractive dividend yield and stable market presence.
However, external risks such as inflation and feed costs should be closely monitored. Overall, Inghams may be a good buy for those looking for reliable dividends and a stake in Australia’s food sector, though investors should consider the broader economic and sectoral risks.
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Frequently Asked Questions
Inghams typically offers a stable dividend yield, with recent figures around 4-5%. This makes the stock an attractive option for income-focused investors seeking consistent returns.