Ann: ING FY2024 Full Year Financial Results Announcement, page-35

Have you ever been a buyer at WW or a supplier of fresh goods to WW?

The reality is Woolworths has looked at the risks it is running, by getting all its chickens from one supplier.

It comes back to supply chain risk and the pricing power of having one supplier, for one of its main sellers in the supermarket.

Same as the supplier of Coke. Woolworths is the supply taker and doesn't like it for numerous reasons.

Also, if there were a supply chain issue with Inghams, ie bird flue, what are its other options. it needs to try to mitigate risk if possible.

You cant replace a supplier who provides over 400,000 tonnes overnight. This supply chain has been built by Inghams over 20 years at a huge cost.

It cant be replicated easily or quickly.

Collins foods sales are down, as are other fast food sellers. People still have to eat and chicken is one of the cheapest source of protein.

They will replace there spend at fast food outlets with supermarket purchases.

The guidance looks good for the company. 0 to 6% increase. Earning 27cps on a share price of $3.09.P/E of 11.

Management is doing a great job with new acquisitions and plant improvements/ efficiencies.

What's not to like.

DYOR

GLTA