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Australia's top chicken supplier cut profit forecast after a 65% drop in first-half profits due to rising costs and supply issues.
Inghams Group, Australia's largest chicken supplier, slashed its full-year profit forecast after first-half net profit fell 65% to $18.1 million, missing expectations.
Revenue held steady at $1.6 billion, but rising costs from labor, ingredients, utilities, and packaging—plus $29.5 million in transition expenses from shifting to performance-based grower contracts—weighed on results.
Excess inventory and supply chain adjustments further pressured margins, leading to a 16% share price drop.
Despite a slight improvement in underlying earnings and progress reducing processed poultry inventory, CEO Ed Alexander called the outcome disappointing amid ongoing inflation and operational challenges.
El principal proveedor de pollo de Australia recortó las previsiones de ganancias después de una caída del 65% en las ganancias del primer semestre debido al aumento de los costos y los problemas de suministro.