The ING result is quite poor, and the balance sheet is under considerable pressure.

Whether they squeak by without a capital raise seems to be a function of how quickly chicken prices recover, and how quickly wheat costs (which are moderating) feed through into improved feedstock outcomes.

Interestingly, Aussie prices experienced quite a different trajectory to international poultry prices, for example, consider the below US and EU outcomes….

…vs what ING have reported over the past 10 or so months.

ING will remain a high-risk, reward prospect for now, we’d suggest. Not one for the faint of heart, although, should input prices normalise, and chicken prices maintain or recover further, the reasonable track record of cashflow generation should permit ING to de-gear quite quickly, at which point we’d become interested for the Core Equity Portfolio.

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