The Inghams Group Ltd (ASX: ING) share price is getting slammed today.
Shares in the S&P/ASX 200 Index (ASX: XJO) poultry producer closed yesterday trading for $3.55. In earlier trade on Friday, shares just crashed to $2.78 each, down 21.7%. At time of writing, shares are changing hands for $2.84 apiece, down 20.0%.
The selling action follows the release of Ingham's full year financial results (FY 2025).
The company noted that with FY 2024 including a 53rd trading week, all year on year comparisons are provided on an amended 52-week versus 52-week basis.
Now, here's what's got investors overheating their sell buttons today.
Image source: Getty Images
Inghams share price tumbles on shrinking profits
The Inghams share price is tumbling after the ASX 200 stock reported a 1.5% year on year decline in revenue to $3.15 billion. That was driven by a 1.4% decline in core poultry volume over the 12 months.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at $392.2 million, down 15.3% from FY 2024.
Positively, the net selling price edged up 0.5% year on year to $6.31 a kilogram.
But that wasn't enough to stop a big year on year fall in profits. With net profit after tax (NPAT) of $89.8 million down 10.2%, the Inghams share price is catching stiff headwinds today.
On the passive income front, the board declared a final fully franked dividend of 8.0 cents per share, in line with last year's final dividend. That brings the full year Inghams payout to 19 cents per share, down 5.0% from FY 2024.
If you want to grab that dividend, you'll need to own Inghams stock at market close on 16 September. The ASX 200 stock trades ex-dividend on 17 September.
What did management say?
Commenting on the results pressuring the Inghams share price today, CEO Ed Alexander said:
FY25 was a year of significant change, and I am proud of how the business responded, successfully completing the Woolworths contract renewal and onboarding of new customer volumes despite challenging Australian market conditions.
We remain confident in our long-term value proposition, underpinned by solid business and market fundamentals and a clear strategic agenda focused on outstanding customer service, cost optimisation, and margin enhancement.
What's ahead for the Inghams share price?
Looking at what could impact the ASX 200 poultry producer in the year ahead, the company forecasts FY 2026 underlying EBITDA to be between $215.0 million and $230.0 million.
Management noted that those earnings are expected to be "significantly weighted" to the second half of the 2026 financial year.
Inghams expects core poultry volumes to be slightly higher in FY 2026, while it expects net selling prices to be slightly lower.
The company expects that its cost reduction initiatives across labour, procurement and site-level operations will deliver annualised savings of between $60 to $80 million, which should then largely offset general cost inflation over the year.
With today's big intraday fall factored in, the Inghams share price is down 26% since this time last year.
