Company Interview / Inghams roasted by cost-of-living pressures

Inghams Group's (ASX:ING) CEO Andrew Reeves notes a 19% drop in first-half profit due to decreased poultry volumes and market transitions. Despite missing market expectations, Andrew highlights the strong EBIT performance, citing favourable response to Woolworths (ASX:WOW) supply adjustments and eased consumer challenges.

Andrew forecasts a positive outlook as feed prices decline, benefiting profitability. Discussing strong retail sales, Andrew sees continued growth in poultry consumption in Australia and New Zealand. He says the Bostock Brothers acquisition will boost margins, showcasing potential in premium organic products.

Andrew hints at further acquisitions, noting financial capability for strategic growth. CapEx remains steady, with planned automation projects enhancing capacity and efficiency. The group eyes improved consumer sentiment and competition in key markets, anticipating positive shifts ahead.