Inghams: 2H23 recovery provides confidence in the outlook

About the author:

Author name:

By Belinda Moore

Job title:

Senior Analyst

Date posted:

18 August 2023, 7:30 AM

Sectors Covered:

Agriculture, Food & Beverage, Travel and Chemicals

• Pleasingly, despite all the headwinds it faced during the period, Inghams' (ASX:ING) FY23 result was materially better than expected. Importantly, the 2H23 showed that a strong earnings recovery is well underway. The large final dividend was a strong sign of confidence from the Board in the company’s outlook.
• The 2H23 run-rate bodes well for strong earnings growth in FY24/25. We have upgraded our forecasts.
• With the foundations now clearly in place to deliver an earnings recovery and an undemanding valuation (FY24 PE of 12.2x and EV/EBITDA of 6.9x), we maintain an Add rating. ING also offers an attractive dividend yield (FY24 4.9% ff).

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