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Inghams Group Limited (ING) investor relations material

Inghams Group Limited H2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H2 2025 earnings summary22 Aug, 2025

Executive summary

  • Underlying EBITDA pre-AASB 16 was stable at $236.4M, with strong New Zealand growth offsetting Australian challenges amid cost-of-living pressures and a major customer transition.

  • Leadership transition completed with Andrew Reeves stepping down as CEO after stabilizing operations and returning the business to profitability post-pandemic.

  • Group core poultry volume declined 1.4% year-over-year, with Australia down 2.5% and New Zealand up 5.2% due to the Bostock Brothers acquisition.

  • Tight cost control and $57.2M in feed cost savings helped offset revenue and margin pressures, especially in Australia.

  • Successful renewal of the Woolworths contract and customer diversification initiatives were completed.

Financial highlights

  • Group revenue fell 1.5% to $3.15 billion, driven by a 10.3% decline in external revenue and lower feed pricing.

  • Underlying EBITDA pre-AASB 16 was $236.4M (flat year-over-year); Australia contributed $183.7M (down 3.4%), New Zealand $52.7M (up 14.3%).

  • Cash flow from operations was $319.3M, with a strong cash conversion ratio of 96.9%.

  • Net debt increased by $82.5M to $430.4M, mainly due to the Bostock Brothers acquisition and capital expenditure.

  • Fully franked dividends totaled 19.0cps, with a payout ratio of 72.7%.

Outlook and guidance

  • FY26 underlying EBITDA pre-AASB 16 is guided between $215M and $230M, with earnings expected to be weighted toward the second half as cost-out and operational reset benefits materialize.

  • Group core poultry volumes expected to be slightly higher in FY26; Australian growth in non-Woolworths retail and QSR to be partially offset by reduced wholesale.

  • Net selling prices anticipated to be slightly lower, with modest feed cost benefits and operating costs expected to rise modestly.

  • $60–80M in annualized structural cost reductions are planned to offset inflation, with capex of $80–$100M focused on efficiency and automation.

  • Modest volume growth is expected, with continued strong performance in New Zealand.

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Frequently asked questions

Inghams Group Limited, trading as Ingham's, is a producer and seller of chicken and turkey products in Australia and New Zealand. Founded in 1918 by Walter Ingham in Liverpool, New South Wales, the company has grown through a combination of organic growth and acquisitions. It operates across a vertically integrated system that includes primary, free-range, value-enhanced, and further processed poultry products. Inghams Group Limited is committed to delivering high-quality poultry products under the Ingham’s brand name, catering to a wide range of consumer needs, including frozen, gluten-free, and ready-to-cook options. Additionally, the company provides stock feeds for the poultry and pig industries, contributing to the broader agricultural sector. The company is headquartered in North Ryde, New South Wales, and its shares are listed on the ASX.

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