Inghams Group (ING) H1 2026 earnings summary

Executive summary

• Interim first half results were below expectations due to elevated operational costs in Australia, excess inventory, onboarding new customers, and supply chain inefficiencies, but inventory was reduced and production normalized into Q3, supporting improved efficiency.

• Revenue for the half year ended 27 December 2025 was $1,610.3 million, broadly flat year-over-year, with growth in net selling prices and improved channel mix offsetting lower poultry volumes in both Australia and New Zealand.

• EBITDA declined 33.8% to $139.2 million and Net Profit after Tax (NPAT) fell 64.9% to $18.1 million compared to the prior corresponding period, mainly due to higher costs and lower volumes.

• Positive volume growth returned in Q2, driven by new business wins, strong QSR growth, and retail customer diversification, while New Zealand operations remained resilient despite export channel closures.

• Cost inflation, inventory management, and supply chain inefficiencies contributed to a 5.0% increase in total costs, while internal feed costs declined due to lower input prices.

Financial highlights

• Revenue was flat at $1,610.3M, down 0.1% year-on-year; core poultry revenue up 0.7%.

• Underlying EBITDA (pre AASB 16) fell 35% to $80.6M; Australia down 42.3%, New Zealand down 3.4%.

• Net profit after tax was $18.1M, down 64.9% versus prior corresponding period.

• Total costs increased 5% ($69.7M) due to inflation and operational inefficiencies.

• Cash conversion improved to 113%, up 18.6 percentage points, driven by inventory reduction.

Outlook and guidance

• FY26 underlying pre-AASB 16 EBITDA guidance revised to $180M–$200M, with benefits expected to be more weighted to Q4.

• Second half performance expected to be materially stronger, with improved earnings momentum into FY27.

• Cost reduction program on track to deliver $60M–$80M in annual savings.

• Recovery in supply chain, farming productivity, and Ingleburn transition expected to be more weighted to 4Q26.

• Inventory levels reduced and production settings normalized, supporting improved network efficiency and cost restoration in 2H26.