Inghams Group (ING) investor relations material

Strategic Direction and Transformation

• Reaffirmed FY 2026 pre-AASB 16 EBITDA guidance of AUD 180–200 million, despite cost pressures from the Middle East crisis and rising feed, fuel, and packaging costs, managed through procurement and mitigation strategies.

• Strategy is sequenced: stabilize operations, optimize assets, and grow value, shifting from volume-led to value-led growth and prioritizing value per bird and return on capital.

• Leadership team refreshed, with clearer accountabilities and reduced organizational complexity to support transformation.

• Growth targets areas with a genuine right to win, guided by consumer insights, scalable opportunities, and control over raw material input.

• Technology strategy avoids a risky ERP rollout, instead building a modular, AI-enabled Nexus platform and a five-year digital and AI roadmap to enhance planning, data integration, and operational efficiency.

Financial Guidance and Operational Improvements

• Identified AUD 130 million EBITDA improvement opportunity over three years, with AUD 100 million from operational improvements and AUD 30 million from enhanced planning; $17.4 million annualized savings already delivered or in progress.

• Inventory reduced by AUD 25 million year-to-date; new business wins and improved pricing are driving tangible stabilization.

• Capital expenditure for FY26 revised to approximately $80 million, segmented into stay-in-business, optimization, growth, and strategic investments, with a focus on extracting more value from existing assets.

• Working capital reduction and improved planning are expected to further reduce net debt, projected to decline from $440–460 million in FY25 to $380–415 million by FY28, and enhance service levels.

• Dividend policy remains unchanged for now, but may be adjusted if other levers prove insufficient to strengthen the balance sheet.

Customer, Innovation, and Market Positioning

• Customer base diversification and category partnerships are driving 18% retail growth outside Woolworths and strong QSR performance, with a shift to category-led relationships unlocking mix, pricing, and growth.

• Commercial Excellence function and disciplined trade spend are optimizing product mix, with a targeted AUD 30 million opportunity from mix improvements.

• New Zealand business is delivering double-digit branded revenue growth, cost reductions, and is on track for NZD 100 million EBITDA by 2030, supported by automation and premium brands.

• Innovation in value-added products, ingredients, and new categories (e.g., bone broth, premium freezer products) is expanding margin and leveraging the trans-Tasman model, with an advanced facility delivering incremental EBITDA and strategic partnerships.

• Digital enablement and AI integration underpin operational consistency, scalable margin expansion, and high staff engagement, with 90% of staff engaged and dedicated AI champions driving business use cases.