Ingham Group Ltd (ING)
ING are now trading near 53 weeks low. What are your thoughts on the stock?
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Answer
Hi Jeremy,
We removed ING from our Hitlist in May following the bird flu worries in Victoria, we’re glad we didn’t try and catch this particular falling knife with the stock subsequently falling another 15-20% but most of this decline unfolded after its FY24 result last month. The stock plunged in September after the company flagged a cautious start to FY25 due to cost of living pressures and changes to its Woolworths contract – the market remains very sensitive to poor forward guidance.
- FY24 EBITDA rose 12.6% and profits rose 68% but FY25 concerns overrode these impressive numbers.
ING will remain Woolworths’ number one poultry supplier, there will be a “phased reduction” in volume under their multi-year supply agreement moving forward. The stocks reaction while aggressive was understandable. We’re not considering ING into weakness yet but value is returning under $3.
