We Don't Expect a Dramatic Shift in Strategy Under Inghams' New Leadership

We maintain our AUD 3.60 fair value estimate for shares in Inghams following a transition in the firm's leadership. After around two years at the helm, CEO Jim Leighton is stepping down, making way for non-executive director Andrew Reeves to take the reins. Leighton brought extensive experience in the protein and poultry industries to Inghams, with a focus on driving operational improvements and efficiencies. Indeed, under Leighton's tenure, the firm has fixated on operational efficiency and asset optimisation to protect operating margins, with a heightened focus on product development of value-add frozen and ready-to-cook products. Despite the change in personnel, we expect the foundations have been laid for much of the same under Reeves, who has 40 years experience in fast-moving consumer goods and served on the Inghams board since January 2019. We assign Inghams a standard capital allocation rating based on our assessment of balance sheet risk, investment efficacy, and shareholder distribution.