The Inghams Group Ltd (ASX: ING) share price is in focus after the company reported FY26 earnings in line with guidance, including a return to core poultry volume growth and strong cash generation.
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What did Inghams Group report?
- Revenue rose 2.4% to $3,227.4 million
- Underlying EBITDA pre AASB 16 was $186.4 million, down 21.2% on the prior year
- Net profit after tax (NPAT) dropped 61.5% to $34.6 million
- Core poultry volumes grew 1.9%
- Final fully franked dividend of 6.1 cents per share declared
- Net debt reduced by $27.1 million to $403.3 million
What else do investors need to know?
Inghams delivered $82.3 million in cost savings during the year, hitting the upper end of its target, despite facing $13.2 million in additional costs linked to ongoing Middle East conflict. The company continued to diversify its customer base, particularly in Australia, where retail volumes excluding Woolworths rose 17.2%.
Production inefficiencies earlier in the year and cost pressures from ingredients, freight, and labour weighed on full-year profitability. However, the second half saw operational improvements with inventories and supply chains returning to normal levels.
What did Inghams Group management say?
CEO and Managing Director Ed Alexander said:
We made significant progress strengthening the underlying business during FY26. Encouragingly, our earnings in the second half were materially above the first half, reflecting the improved underlying operating metrics… While the operating environment remains challenging, we enter FY27 with a more balanced network, a stronger and more diversified customer portfolio, a refreshed senior management team, and clear visibility of the opportunities still to unlock.
What's next for Inghams Group?
Looking ahead, Inghams expects its primary earnings measure to shift to underlying EBIT, with FY27 guidance set at $155–180 million. The company forecasts further core poultry volume growth of 2.5–4.0% but anticipates continued cost pressures—including higher transport, packaging, and feed costs—due to both inflation and ongoing geopolitical disruptions.
Management is focused on ongoing cost control, leveraging procurement and continuous improvement initiatives to offset rising expenses. Capital expenditure for FY27 is expected around $80 million, as the group aims to strengthen its network and support future growth.
Inghams Group share price snapshot
Over the past 12 months, the Inghams Group share price has been among the worst performers on the S&P/ASX 200 index (ASX: XJO) with a decline of around 37%.
