Welcome to Inghams Financial Year 2024 Interim Financial Results Briefing. Following the formal presentation, there'll be a Q&A session for investors and analysts. Participants can ask both text and live audio questions during today's call. To ask a text question, select the Messaging tab, type your question in the box towards the top of the screen, and hit the arrow send symbol. To ask a live audio question, press the Request to Speak button at the bottom of the broadcast window. The broadcast will be replaced by Audio Questions Interface. Press Join Queue, and if prompted, select Allow in the pop-up to grant access to your microphone. If you have any issues asking a question via the web, a backup phone line is available. Dial-in details can be found on the Request to Speak page or on the Home tab under Asking Audio Questions. Text questions can be submitted at any time, and the audio queue is now open. I will now hand over to Andrew Reeves. Good morning, everyone, and thank you for joining us today. My name is Andrew Reeves, Managing Director and Chief Executive Officer of Ingham's, and it's my pleasure to welcome you to the Ingham's FY24 Interim Results Presentation. On behalf of Ingham's, I would like to respectfully acknowledge the traditional owners, both past and present, as custodians of the land we are meeting on today. Joining me today for today's presentation is our Chief Financial Officer, Gary Mallett, and at the conclusion of the formal presentation, we will be happy to take any questions you may have on our results or the business. I am pleased to report that, as you can see here, Ingham's has delivered a solid set of interim financial results. Without going into too much detail here, as Gary will delve into the financial details shortly, our earnings and profit metrics have shown strong growth. Reflecting the good financial performance achieved, we have declared an FY2024 fully franked dividend of AUD 0.12 per share, which represents an increase of 20% on the final dividend declared in August of 2023 and a significant 166.7% uplift on PCP. The interim FY2024 dividend represents a payout ratio of 71.6%, which is within our target range. Leverage has remained stable versus the level reported at our FY2023 results in August and is comfortably within the target range. As I noted on the previous slide, Ingham's has delivered a strong first-half 2024 result driven by solid operating performance, growth in margin and volume, and in line with the trading update provided in October of 2023. Australia and New Zealand both delivered strong profit contributions in the period, and our underlying EBITDA pre-AASB 16 margin has increased 290 basis points to 8.4%. Our safety focus and our Safety for Life program continue to support improvements in our safety outcomes, with our total recordable injury frequency rate in the first half declining by 23% on PCP. A key driver of our first-half result was growth in net selling prices, or NSP. The cost environment has been and remains a challenging one. While the general rate of inflation across the economy may be moderating a little, costs are still rising, and overall, our costs remain elevated. The NSP increases that were implemented in FY23 and early FY24 reflect the significant increase in costs the business has experienced, including through feed and other commodity and key input costs. New Zealand achieved a solid operating performance driven by a return to stable operations following a period of significant disruption, with sales volume growth of 9.5% reflecting improved supply to meet market demand. An important focus area for management is on our network capacity and capability and enhancing the resilience of our operations. During the period, we completed the opportunistic acquisition of the Bolivar processing plant in Adelaide and the Bromley Park Hatcheries business in New Zealand. The previously announced automation program is progressing well, with installation and commissioning of all 4 new leg deboning machines completed in December ahead of both schedule and budget. Finally, our third new temperature-controlled distribution center at Hazelmere in Western Australia has now been completed and became operational in January. The Company's leverage ratio increased only marginally to 1.5 times, comfortably within our target range of 1-2 times. In recognition of the strong first-half result, we've declared a fully franked interim dividend of AUD 0.12 per share, which is up 20% on the final dividend declared in FY 2023 and represents, as I've already said, a payout ratio of 71.6% of underlying NPAT Group NSP increased 8.5% versus first half of 2023, reflecting the increases applied both in FY 2023 and early FY 2024 in response to significant increases in costs that we have experienced. The movement in NSP in the first half 2024 has also been influenced by a shift in channel mix, with the shift in consumption patterns toward in-home dining seeing retail channel share increase by nearly 2% to be just under 50% of total core poultry sold versus the full year of FY 2023. Overall, while the significant acceleration in inflation in recent times has seen poultry prices rise to reflect the significant growth in costs, poultry continues to be more affordable than red meat. Turning now to look at the conditions across our channels during the first half. Core poultry volume increased 2.2% on first-half 2023, comprised of growth in Australia of 1% and particularly strong growth in New Zealand of 9.5%. The growth in New Zealand is the result of production capacity returning to normal levels versus the first half of 2023, when production volumes were significantly impacted by lower egg setting in response to labour and CO2 shortages. As you can see from the chart, the broad themes were consistent across Australia and New Zealand. Retail growth was stronger in both markets as consumers responded to cost of living pressures by shifting consumption toward in-home dining options. This shift has come at the expense of traditional out-of-home channels such as quick-service restaurants and food service. In Australia, the decline in quick-service restaurant volume was more than offset by the previous net selling price increases, which were in response to operating cost inflation, while in New Zealand, volume was largely flat as the marginal reduction in consumer demand was offset by increased supply availability. I'll now hand over to Gary to present the financial results in more detail. Thanks, Gary. Thank you, Andrew, and good morning, everyone. Commencing with our profit and loss for the half, as Andrew noted earlier, core poultry volume increased 2.2% with significant growth in New Zealand, meeting demand as operations returned to a normal cadence. The closure of the Wanneroo Feed Mill in Western Australia in April of last year has seen the external feed volumes decline, as we have previously flagged. The growth we have delivered in NSP, combined with an increase in volume, underpinned the 8.7% growth in revenue. Our underlying costs increased 6.9%, or AUD 89 million, feed costs representing AUD 11 million of this amount increased due to the combined effects of growth in volume and a small increase in Australian feed unit costs. Other costs increased 8.5% due to volume growth and inflation, partially offset by efficiencies and an improvement in overall performance. While cost inflation has moderated a little during the period, higher cost growth has been observed across salaries and wages, electricity, ingredients, and repairs and maintenance. Depreciation declined 10.3%, and this was largely due to a reduction in AASB 16 depreciation relating to transitioning some grower contracts to variable contracts and thus off AASB 16, as we have previously discussed. Finally, our net finance expense increased due to the effect of higher interest rates in the period. Turning now to the balance sheet. Firstly, inventories, which increased by AUD 31 million. This was due largely to an increase in inventories to support improved customer service level performance as we were running a bit tight, and an increase in processed poultry inventories due to a softening of demand in out-of-home channels, particularly in Q2. Secondly, PP&E increased by AUD 93 million due to the acquisition Andrew mentioned of the previously leased Bolivar primary processing plant in South Australia and the Bromley Park Hatcheries business in New Zealand for a combined AUD 79 million. Net debt increased AUD 83 million on June 2023 to AUD 346 million, with the Bolivar purchase and seasonal working capital. Combined with the continued improvement in earnings, the company's leverage ratio increased marginally to 1.5 times, which is at our midpoint of our target range. Moving now to cash flow. Starting with our cash conversion ratio for the period, which improved 89.1% due to stronger cash collection despite the increase in inventory in the period. It was a busy period for investment in the business, a key element of our strategy. Total capital expenditure during the period was AUD 118 million. We invested AUD 39 million on CapEx, including continuing investment in the Northern New South Wales Breeder Triangle and previously announced automation investments being the deboners on the DSIs. Other CapEx include the acquisition of Bolivar for AUD 75.6 million and the acquisition of Bromley Park Hatcheries in New Zealand for AUD 6.6 million, which includes working capital. Dividends paid in the period relate to the final FY23 fully franked dividend of AUD 0.10 per share, which was up significantly on the FY22 final dividend. Tax increased AUD 10 million on the back of the higher FY23 earnings. AASB 16 interest and principal repayments declined AUD 16.5 million due to the conversion of some contract growers to variable contracts and a reduction in lease payments due to the closure of the Wanneroo Feed Mill in WA. Now, looking at capital management. Cash flow from operations increased AUD 84 million to AUD 224 million through growth in EBITDA and improved cash conversion, notwithstanding an increase in inventory. Sustaining capital was AUD 18.5 million, which was 70% of depreciation. Investing CapEx, which incorporates our core and high-growth projects, was AUD 24 million and included further expenditure on the Breeder Triangle, our automation investments, and the acquisition of Bromley Park Hatcheries. Strategic CapEx saw the opportunistic acquisition of the previously leased Bolivar plant. While net debt has increased as a result of the acquisitions and investments during the period, the improvement in earnings resulted in leverage only increasing slightly to 1.5 times at the end of the period, within our targeted range of 1-2 times. As Andrew has mentioned, a fully franked interim dividend of AUD 0.12 per share has been declared, which represents a payout ratio of 71.6% within the policy range. Finally, some comments on the feed market. As regular followers of Inghams know, feed is one of our largest costs, and this chart is designed to provide some insight into what we are seeing across feed markets. As noted in our FY23 presentation, feed prices began to stabilize during FY23 following a sharp increase in earlier periods. Overall, global pricing for wheat and soymeal have been moving a little lower since earlier in FY23, with improving production for both inputs as northern hemisphere conditions have improved. Wheat supply has also improved as Black Sea exports have been better than expected. Australian wheat production has moderated compared to record production levels in more recent periods. As we noted earlier in the presentation, Australia saw only a small increase in feed unit costs in the half, while New Zealand saw a decline, following from a period in which a variety of factors, including conflict in Ukraine and significant supply chain issues, combined to drive the international price paid in New Zealand to a high level. Based on current pricing, it is anticipated to see some benefit of lower pricing in FY25 for that. I'll now hand back to Andrew to discuss the segment performance. Thanks, Gary. In Australia, core poultry volume increased 1%, with strong retail channel growth of 9.3%, substantially offset by a decline in QSR and other out-of-home channel volumes as consumers responded to the current cost of living pressures. The decline in external feed is due to the closure of the Wanneroo Feed Mill in April of last year. Revenue grew by 7.2%, driven by core poultry volume growth and an 8.4% increase in core poultry NSP. External feed and ingredients were broadly flat. Cost inflation remains a feature of the operating landscape. Our costs increased 6.4% versus PCP. We recorded an increase of just under AUD 11 million in internal feed costs, which was driven by the increase in volume and a 3% increase in feed unit cost. Other costs increased 7.8% due to higher volumes and general inflation. Higher costs continued to be observed across electricity, ingredients, husbandry, salary and wages, and repairs and maintenance. Turning to New Zealand, we have seen a meaningful turnaround in performance in this period, which is a credit to the efforts of the entire New Zealand team. As I noted earlier, core poultry volume increased 9.4% in the half, reflecting improved production with a return to normal operating cadence and with the PCP impact of labor and CO2 shortages moderating. External feed volumes increased 5.9% due to an increased demand from third-party table egg customers. Revenue was up 17.5% due to core poultry volume growth and an increase of just under 10% of NSP as FY23 price increases carried forward into the half. External feed selling prices declined 3.7%, reflecting some raw material cost reductions. Underlying costs increased 9.3% as growth in other costs excluding feed increased 13.2% through increases in labor, electricity, ingredients, husbandry, repairs, and maintenance. Internal feed cost was flat during the period, with a decline in international feed pricing offset by an increase in volume. Turning now to an update on our key investments during the period, followed by some closing remarks before we move to questions. We have previously spoken that Inghams Growth investment focused on enhancing our network capacity, capability, and efficiency. In line with this strategy, I'm pleased to report that the new distribution center in Hazelmere, Western Australia, has been completed and commenced operations in January of this year. The Hazelmere DC is the third of a three-facility investment program that has seen us open new distribution centers in Truganina, Victoria, and Edinburgh Parks, Adelaide, in August 2022 and April 2023, respectively. The new purpose-built facility, which is around 2 times the capacity of the previous facility, will provide significant operational efficiencies and replaces the previous DC for fresh and frozen chicken to supply across Western Australia. It will also contribute to Inghams achieving its sustainability goals over time. During FY23, Inghams announced a series of new investments in processing technology. The introduction of higher levels of automation has been a key consideration for Inghams as a part of our network analysis and planning. Under this program, as we have advised at the time, we placed orders for 4 state-of-the-art water jet cutters and 4 modern leg deboning machines, with installation taking place in the first half of 2024 and progressively into FY25. I can report that this investment program is progressing well. The installation of all 4 new deboning machines has already been completed earlier than forecast and ahead of budget. Delivery and installation of the water jet cutters remains on track and is expected to occur progressively through FY25. During the period, we completed 2 strategic network-related acquisitions. In October 2023, following receipt of the relevant regulatory approvals and completion of the required purchase conditions, we completed the purchase of Bromley Park Hatcheries in New Zealand, an owner and operator of breeder farms as well as a hatchery, and who were providing Inghams with up to 15% of its day-old chick requirements. In addition to the key benefits of the acquisition that we've previously outlined, the acquisition represents a compelling opportunity to apply Inghams' knowledge and best-practice approach to generate improved performance. Further, in December 2023, we completed the acquisition of the Bolivar primary processing facility. This opportunistic acquisition of a strategically important asset aligns well with the group's stated desire to own key operational sites on a freehold basis. We're commercially and operationally feasible. It will provide Inghams with greater control over future operations planning at the site and introduce greater flexibility into the broader primary processing networks. Inghams' first half 2024 results are driven by solid operating performance and growth in margin and volume. Pleasingly, we have seen a return to stable operations in New Zealand following a period of significant disruption, and this has underpinned this strong first half result. Conditions for consumers over the second half of FY2024 are expected to remain challenging, underpinning the ongoing shift we have seen already toward in-home dining from out-of-home channels. This will be reflected in the second half 2024 poultry volume and channel mix. The combined effect of modest tax relief and some relative slowing in overall rate of inflation may provide some benefit in FY2025. As you saw in an earlier slide, the pricing of key feed ingredients has stabilized, noting Australian wheat pricing has been adjusting at a slower rate than international pricing. Based on the current market pricing, we anticipate some benefit from lower key feed costs in FY25, while feed costs expect to remain elevated versus long-term levels. SG&A costs have been higher in FY24, period to date due to investment in people capabilities, short and long-term incentive costs, and cybersecurity and IT investments. To help partially offset cost growth across the business, Ingham's maintains its long-term focus on operational efficiency and continuous improvement initiatives, which is a key strategic pillar to deliver cost savings and reduce waste and overall operating costs. Our automation investment is well progressed, and the installation of the new water jet cutters in Australia is expected to occur progressively in the following financial year. Finally, as advised in our training update in October of 2023, the second half 2024 result is expected to be lower than the first half 2024 result due to normal seasonality, continued inflationary headwinds across labor, feed, and other costs, including fuel, energy, and CO2. Before we close and move to questions, I'd like to make a few headline remarks about our business. We believe that Inghams represents a compelling proposition. We have deep relationships with our key customers who prioritize poultry. We operate at scale, which translates to efficiency in a large and growing market, executing against relevant consumer insights. This provides a platform for delivering robust and attractive earnings over the longer term. We are leaders in safety, quality, welfare, and sustainability. We have the right capabilities and experience to execute our strategic plan, underpinned by the financial strength and flexibility that enables us to invest for growth. That concludes the formal presentation. I'll now hand back to the operator, and we will be happy to take your questions. Thank you. Thanks, Andrew. If you have not yet submitted your text question or joined the live audio queue, please do so now. I will introduce each caller by name and ask you to go ahead. You'll then hear a beep indicating your microphone is live. Our first caller is from Craig Woolford. Please go ahead. Good morning, Andrew and Gary. I just wanted to start with a question about the outlook, probably more about the operating environment, in fact, just the scrutiny or what you expect to see on pricing over the next 12 months. There is a backdrop of more scrutiny for all companies, retailers, and suppliers alike around pricing, obviously a Senate inquiry coming, and an outlook for feed costs reducing. Do you expect that poultry prices will hold where they are, or do you see poultry prices falling? So I mean, we're still operating in a reasonably challenging inflationary environment, so there's going to have to be a constant monitoring of those costs and how we think about how we moderate those or how we might pass them through. I certainly don't think you would see the sort of level of pricing we've seen this half and the previous year in the outlook. And I think we've also got to be cognizant of the fact that volume is probably going to be a little bit softer, so we don't want to do things that exacerbate a dampening of demand. So again, we'll remain vigilant on that one, Craig, and take price where it's relevant and justified. But again, my point would be as I think of it, it will be at a decelerate or a decreasing rate from what we've seen in the last 18 months. Good. Only other question was just on the outlook slide, there's a comment about obviously the channel mix, which you've alluded to through the deck. But then you say there's a shift in demand. Volume changes will require a rebalancing of further processing, production, and inventories. Are you trying to signal that there's an additional cost in the second half to do that, or is that within your operations and what you've been dealing with in the first half as well? Hi, Craig. It's Gary. There will be. So QS demand is predominantly in our further processing area. So as that's falling off, we will see, and the buildup of inventory was principally in that area as well. So yes, we do need to rebalance, and there will be some cost that comes with that. Our next question comes from Ben Gilbert. Please go ahead. Hey, my guys. Just wanted to understand some of that channel mix side of things. In terms of sort of the weakening of QSR into the end of the year and food service, is that a function of share or market? So now obviously, KFC, I think, has moved to another distributor or producer for part of their supply to Queensland. Just how do you think you're sort of behaving within there, and how do we think about the trade-off there with the grocery channel that's been short poultry for the last couple of years, and you seem to be getting more range in there in terms of value-added product? I'm just trying to understand how that dynamic feeds into volume, your comments around softer volume outlook, and also margin mix. So it's not a share issue. It's very much a demand issue. And if you talk to QSR customers, they'll talk about the fact they're having challenges with visitation or foot traffic and the size of transactions. So there is definitely a softening of demand in that channel. It's not our view that we're losing share. And on the supply side, really since Easter of last year, supply has improved quite significantly from our point of view, and all of our customer service levels have been consistently high through that period. So we've certainly been able to meet market demand, and we certainly ramped up production over that timeframe because we've gone through a period of significant shortage and disruption to our customer supply levels. So we needed to get that back on track and sorted out. And that's very much in the right place as we sit here today. So supply is good. I think the challenge for all of us at the moment is just the outlook for market demand. On the strategy, I think you sort of talked to aspirations of 10% margins. How are you thinking about that aspiration today in light of obviously it's proven to be the tougher last couple of months? Is that sort of 10% still an achievable number in 2025, 2026, or how are you thinking about the ability to achieve that against this market backdrop and with some potential easing of feed pressures into 2025? Yeah. So look, the margin aspiration hasn't gone away. And I think if you look at our results that we've been announcing, particularly over the last number of years, we've come out of COVID. We've got a positive trend on margin. It's heading in the right direction, and that continues to be our ambition. And we'll continue to work on that through not just 2025 and 2026 but beyond. Certainly, some relief on feed would be helpful to that, but we can't rely on that. We've got to keep doing all the other things that we're in control of that help us improve margin, cost management, capital investment, mix improvement. But the aspiration certainly remains. Thank you. Our next call is from Peter Nelson. Please go ahead. Hi there, Peter. Please go ahead with your question. Moving on to the next question, Evan Karatzis. Please go ahead. Yep, thanks. Great. Okay, thanks. I'm just looking at the metric you guys sort of focused on back at the invest today, that core poultry EBITDA per kilogram. Pretty good effort getting it to AUD 0.57 a kilo. I mean, it's the highest you've ever gotten it to. So just keen to get into the drivers of why it's above previous levels, and then also, I guess, the sustainability of that as you enter a lower feed cost environment, which may impact, I guess, end-selling prices as well. Just how you think, yeah, that sustainability of that level of profitability per kilogram is? Well, again, as I said in my answer to the previous question, that's a part of our long-term ambition and our planning is around how do we keep improving that metric, which translates to a better margin. And it goes to the things that we've been talking about in today's deck, and we've been talking about the investor day, which is this continual and disciplined focus we have on cost management. We don't just accept the fact that costs go up. We work very diligently and focus very much on how do we mitigate those cost increases. We don't want to just be willy-nilly passing prices on. But that's important. Obviously, the investments in capital that we're making, particularly in automation, are significantly beneficial when it comes to lowering unit costs and therefore improving that profit per unit metric. The improvements in mix, we continue to work with our customers on how do we drive volume into higher value, higher margin products, and there's been no slowdown in that effort, and it continues. And of course, sensible price recovery. So all those four levers that we're focused on, we continue to focus on. And if we get that right, even in a challenging environment, we should be able to see a good, steady, and sustained increase in both margin and EBIT per kilogram. All right. Cool. Let's go, Carla. Just the second quote or final question I had. Just with this 1H, 2H EBITDA Pre-AASB skew, historically, it's been around that 52-48 mark towards the 1H. I mean, just given your outlook comments, The skew, obviously, will be probably higher this year, maybe around the 55-40 mark. Is that in the ballpark, I guess? Any sort of additional info or color you can provide there would be helpful as well. Evan, I think that's a bit bordering on guidance, so I think we will leave that one alone. Thank you. The next question is from Phil Kimber. Please go ahead. Hi, guys. It's Phil here. I just wanted to maybe explore that. If I look at your Pre-AASB EBITDA at the group level, it's gone from 83 to 100 to 138. And I get that. I I think your period might have finished slightly earlier, so there might be more public holidays impacting the second half, which might be part of the reason why that second half number should be lower than the first half. But that trajectory seems quite different from your commentary. I don't know if you're just being overly conservative, or are there things that have changed in your business in the last couple of months that's why your sort of outlook commentary seems to be more tempered? Well, I mean, the seasonality is the first thing. I mean, and we had many, and particularly in the third quarter, the one we're in now, we had many more public holidays. So that tends to be one of the things that puts down the pressure on the earnings. I guess where the caution is coming in is what we've been seeing in terms of demand, which is definitely back end of last calendar year and into the new year. There's definitely been some moderation and softening there. But Phil, it's exactly what we said. It's consistent with what we said in the trading update in October, that we would expect that trajectory would slow in the second half, still leading to an overall good result for the year. But we're not just going to be able to maintain that trajectory through the second half. Sure. But I guess, yeah, I'm trying to work out, is the 100 that you did in the second half last year, is the 138 just sort of an abnormal blip? You've gone from 100 to 138. Do you go back to, I don't know, down 15%-20% from that, or are we talking down 5%-10%? I mean, you're probably not going to answer that because it's sort of guidance. But I guess that's what we're grappling with because we get that it's going to come down, but trying to understand what are you trying to say? It's going to come down materially, like 20%+ type levels? Phil, we can't answer that. From the first, yeah. Okay. And then can I ask also, the one thing that you were banging along with your guidance at EBITDA, but the NPAT number was actually, on a Pre-AASB basis, a little bit lower than what you had guided to. So I think you'd guided to AUD 71 million. You came in at AUD 69 million. I noticed the tax rate was a little bit higher. Is that the main thing that changed, and how should we think about the tax rate going forward? So I mean, you go into a point forecast, and obviously, we set around, so 1.5's pretty close. But yes, it was principally around tax was where the difference is because you can see that EBITDA was bang on. Going forward with tax rates, I mean, outside of the R&D credits, we're pretty consistent. We don't have much of a difference between our, I guess, prima facie and actual tax rates outside of R&D. I can confirm there was no R&D in the first half. We'll have to see what happens in the second half. It's still a fair bit to do, so there's no guarantee there'll be anything in the second half. But yeah, it was a slight difference in tax was what drove that slightness compared to the point. Thank you. Our next caller is Mitchell Hawker. Please go ahead. Thanks for the question. I just wanted to talk about the New Zealand Pre-AASB 16 margin growing to 11% from 4%. I can see that their volumes have grown 9%. You've got price increase 9% and underlying cost 9%. Is the difference in margin largely due to the increase in volume? And in light of, I guess, the commentary and the questions on the call today, is this 11% underlying EBITDA margin sustainable into the future? Well, just to put it in perspective, that 4% margin was really a very poor outcome, which was driven by really difficult operating conditions in that prior period, so massive labor shortages and particularly a very, very severely disrupted supply of CO2, which really affected our further processing production, which primarily is the product that goes into the quick-service restaurants market. There were periods there where we were producing well below what the demand was. It's a little the volume, while it looks very impressive at a headline level, is really just about recovering supply and being able to meet the normal level of demand. Clearly, it's been very advantageous to have that volume back in the system, and it's helped us recover that margin. But New Zealand has historically had a high margin than Australia because of the nature of the structure of the market and some of the ways in which we service a number of our customers in that market. So the channel mix and the customer mix is a little bit more favorable from a cost-to-serve basis, which feeds into that margin piece. So it certainly is, again, goes back to my comments about Australia. We think in both markets, our ambition to continue to responsibly expand margin through those four levers I talked about remains on track. Thank you. The next question comes from Ross Curran. Ross, please go ahead. Thanks. This is AJ from Macquarie. Just a question around that shift away from QSR and towards the retail side of the business. How should we think about is there any potential risk to margins moving between these segments? Is there anything we should think about there? So we don't give margin guidance. We don't give margin guidance between the channels, so we're very happy to be supplying into both of those markets. So no, there's not going to be a material shift as a result of that. Got it. Thanks. Just one other thing in regards to pushing price through, given that the retail customers are now facing a bit more regulatory pressure and inflation's coming off, is it becoming more challenging to pass through those cost increases? Well, price increases are never easy, and none of our customers ever like it when we take them price increases. But it's our job to responsibly engage with them when they're necessary and when we need to recover costs. So I don't think it's going to, I mean, I think it'll definitely moderate. I said that in my earlier comments. I don't think we'll be seeing the level of increase we've seen over the last couple of years as inflation comes off and some of the costs improve. But there'll definitely be opportunities for some level of price increase, and we'll continue to pursue those where it's relevant. Thank you. The next call is from Richard Amland. Richard, please go ahead. Hi, guys. Can you hear me okay? Yeah, sure. Gotcha. Okay. I'm struggling with the technology stuff. Just a couple of questions. The marketing strategy that you guys outlined in the investor day in November regarding QSR oh, sorry, the supermarkets and the attempt to sort of move the higher margin products, what's the sort of timeframe that that can be affected over? Is that a do you guys expect that you'll sit in the context of this swing to retail, will those benefits have a near-term impact, or is that sort of a multi-year sort of timeframe? That's my first question. Yeah. Well, certainly, it's not an instant hit. That's for sure. I mean, you've got to work with those customers in part with them on the category and working through the opportunities there. But it's ongoing, and it's a constant part of our engagement and our joint business planning process with our customers. There's certainly strong alignment between what we're trying to achieve there and what the customer is happy to support because the returns are attractive to both of us. So it's mutually beneficial, and it's a multi-year effort. It's improving mix, improving the propositions you take to market, improving the value of those propositions. Richard, it's a constant theme. So hopefully, as we see this continuing margin trend over time continue to steadily grow and improve, that will continue to be a big contributor to that. But it's not a sugar hit, that's for sure. I guess just looking for some clarity in terms of whether or not there's enough momentum right now sort of to have a positive impact as early as 2H FY2024, or should we assume that, yeah, the historic margins are sort of it'll take longer? That's what I'm sort of getting at. Yeah. I don't think I've got much more to add to what I've already said on that one. Again, at the investor day, the GM in New Zealand suggested that the NZ recovery, the business recovery that they could double the earnings over the next several years. I guess where are we in terms of that sort of pathway considering the uplift year-over-year in this first half? Yeah. Well, obviously, they've made really good progress given this first-half result, and that's consistent with, again, with that ambition of those earnings from that market becoming even stronger. So certainly, the forward planning in the New Zealand business suggests that we're on track to do that over the next couple of years, and the team haven't backed away from that ambition. Thank you. The next call is from Ben Gilbert. Ben, please go ahead. Thanks. So just another quick one from me. In terms of the moderation around cost inflation and the benefit of feed, what are you thinking in terms of cost inflation for the second half ex-feed? I think you said around 7% for the first half. You're sort of thinking a point or two less. Just what are you seeing in terms of those run rates? And just that dynamic of easing feed costs into 2025, how much confidence, I suppose, are you taking long-dated hedging at the moment? Are you shortening or just keeping in line with how you usually hedge in forward order, some of the inputs? Yeah. So, hedging policies is the before 3-9 months, and we're within that as we always are. We're seeing some signals. We don't think that will have much impact at all in the balance of FY24, so it's buying opportunities that will be seen in the coming months that will drive that. So yeah, we're seeing some positive signs at the moment, but that has to continue. So we might have a house view as to where grain prices are going to go. And then inflation-wise, again, you'll potentially have a better view than me on that. But yeah, we would expect to see some moderating. I suppose the new South Australian facility, Bolivar, if you bought should provide some tailwinds around EBITDA, albeit obviously then EPS neutral because of the high debt associated, right? I'm sorry. I missed that, Ben. Didn't get that, Ben. Sorry. Apologies. In terms of some of the acquisitions, albeit obviously small from an operations standpoint, but the new facility or the facility you bought in South Australia and then presumably the WA one coming on should provide some cost benefits in the second half? So the automation projects that we've been talking about, so Andrew mentioned the automatic deboners or the automatic leg deboners, so they're now implemented. So that will progressively deliver its benefits coming through. So absolutely from that. The Bolivar acquisition, we did previously lease that facility, so it's not a huge change when you look at that. There's a difference in balance sheet when you look at AASB 16 and how that flows through, but we've still got the same facility there. But yeah, absolutely, as Andrew mentioned before, margin improving that EBITDA per kilogram, those investments are one of the key planks in that and will deliver benefits over the coming years. Thank you. We have another question from Evan Karatzis. Evan, please go ahead. I didn't actually have a question, but I'll take advantage of it. Do you want to maybe just speak to how some of that pricing is going through the wholesale channel and just broader industry supply? We sort of as industry back up all the challenges probably the last 2 years, 18 months. Do you think the industry's back to a normal cadence and run rate in general as well? Well, yeah, that would be our assessment, that certainly there's been a significant improvement in a whole series of the farming conditions, certainly across our network and what we can understand of the other producers. Supply seems to be at pretty healthy levels. Certainly, the wholesale channel is still holding up, still performing well, and still contributing well. I think I'd probably characterize it saying the market's in pretty good balance at the moment. Great. Okay. Thanks for that. Appreciate it. Thank you. To ask a text question, select the messaging tab, type your question in the box towards the top of the screen, and hit the arrow symbol to send. To ask a live audio question, press the request to speak button at the bottom of the broadcast window. Follow the instructions on screen to join the queue. Just give it a couple of moments to see if we have any other questions come through. Okay. Next question is from Mitchell Hawker. Mitchell, please go ahead. Oh, sorry. I didn't have another question. Apologies. I might have pressed the wrong button. That's all right. Talk to me later. Okay. There are no further questions at this point, so I'll now hand back to Andrew. Thank you. Great. Thank you. Thank you, everyone, for joining us today. Thank you for your questions. I know we'll talk to quite a few of you later in the day, so happy to expand on those themes. So yeah, thank you again. I think that concludes.