S&P/ASX 300 Index (ASX: XKO) food stock Inghams Group Ltd (ASX: ING) is charging higher 6.2% to $1.80 on Monday. The market reacted positively after the chicken and turkey producer reassured investors with a steady earnings outlook and signs of improving operational momentum.
Despite today's rally, the ASX 300 stock remains heavily down over longer periods. Inghams shares have fallen 28% year to date and are down 53% over the past 12 months. By comparison, the S&P/ASX 300 Index (ASX: XKO) has gained around 5% over the same period.
So, what exactly did the ASX 300 stock report?
Image source: Getty Images
Poultry volumes and prices rise
The ASX 300 food stock reaffirmed FY26 underlying EBITDA guidance of between $180 million and $200 million before AASB 16 adjustments, giving investors confidence that trading conditions have stabilised despite ongoing cost pressures.
Inghams also revealed that group core poultry volumes rose 1.1% during the first nine months of FY26 compared with the prior corresponding period. At the same time, core poultry net selling prices also increased 1.1%.
Investors appeared particularly encouraged by the ASX 300 stock's operational progress and cost-saving measures. Inghams said its annualised cost-saving initiatives are expected to deliver between $60 million and $80 million in benefits.
Inghams additionally revised FY26 capital expenditure guidance to approximately $80 million.
Commenting on the result, Chief Executive Officer and Managing Director Ed Alexander said:
We are seeing improved operational performance and positive momentum from initiatives already delivered, while reaffirming our FY26 guidance in a challenging environment.
Reduced frozen inventory
The ASX 300 food stock highlighted stronger operational execution across several areas, including yield improvements, labour productivity, and inventory management. Inghams also reduced frozen inventory by $25 million, helping improve system balance and strengthen cash flow generation.
However, the food producer still faces meaningful challenges. Management warned that cost pressures remain elevated across feed, diesel fuel, and packaging. Inghams expects higher fuel costs alone to create a net $7 million to $10 million impact during FY26, although pricing actions and operational efficiencies are expected to partially offset the pressure.
Inghams noted that feed costs are currently well covered for FY26, but higher costs are expected to emerge in FY27.
What next for Inghams?
Even so, Inghams said it remains focused on stabilising operations, improving asset utilisation and increasing value per bird. Management believes ongoing operational improvements and tighter cost controls should continue supporting earnings growth despite uncertain input costs.
The ASX 300 food stock is also pursuing growth opportunities beyond its traditional poultry operations. Inghams is expanding its ingredients and higher-value product divisions while leveraging recent investments and scaling new initiatives, including the launch of the Bostocks brand in Australia.
For investors, today's strong rally suggests the market was relieved to see the consumer staples share maintain guidance and demonstrate improving execution after a difficult 12 months.
