Agricultural & FMCG

The recent ABARE commodities report highlights the leverage play in BGA’s ingredients business. We see this upside potential as underappreciated by the market.

ING’s share price has remained fairly depressed post-1H24 despite the continued downdraft in both domestic wheat and imported soybean pricing.

ING reported a 1H24 underlying NPAT modestly lower than expectations at $63.4m (BPe $65.5m).

We see conditions in general more favourable for ELD in the months following the FY23 result, with improved rainfall patterns in key cropping areas and stronger livestock pricing trends.

AAC reported 1H24 Operating EBITDA ahead or our expectations at $30.1m. Our Buy rating remains unchanged.

CSS’s AGM highlighted a more sombre trading update than we would have expected, with sales volumes broadly flat YOY and frozen inventories building. We downgrade our rating from Buy to Hold.