The first thing I did was look at WOW's online availability of ING products, as it's the only supermarket chain making it easy to see this at a glance.
At least in Victoria, 26 of 53 ING products normally ranged are 'out of stock'. I don't know what percentage of sales by volume and revenue that represents for ING, but it must be significant given WOW is Oz's #1 chain, highly regarded by millions of Australians. No reason to think stocks at MTS' IGAs or COL outlets will be any better.
While ING says its debt increase of c$24 million is due to seasonal borrowings and higher tax payments, it seems somewhat vulnerable to higher interest rates.
Against this, with beef in particular and lamb being so much more expensive than chicken, if it can get product to supermarkets, then ING should eventually be in a strong position. In the meantime, higher costs that it outlines are eating into profits.
No media has analysed whether major competitor, unlisted Baiada, is any better off. I've noticed greater penetration of its frozen Steggles brand into WOW supermarkets in the past few months. Not good for ING.
In the past couple of years I've sold ING at a profit, but despite the drop of aropund 19 cents in the SP today, the extremely uncertain outlook and higher costs makes me cautious about a reentry. Yes, I know what Mr Buffett says...
ING Price at posting:
$3.34 Sentiment: Hold Disclosure: Not Held
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