Inghams Group (ING) H1 2026 earnings summary

Executive summary

• First half results were below expectations due to elevated operational costs in Australia, including excess inventory, higher onboarding costs, and transitional supply chain inefficiencies, but inventory levels were 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.

• Group Net Selling Prices increased 1.4%, with improved wholesale pricing up 4.5% year-over-year.

Financial highlights

• Revenue was flat at $1,610.3 million, down $1.0 million year-over-year; core poultry revenue up 0.7%.

• Underlying EBITDA pre AASB 16 was $80.6 million, down 35% year-over-year; EBITDA (post AASB 16) was $139.2 million, down 33.8%.

• Net profit after tax was $18.1 million, down 64.9% year-over-year.

• Cash flow from operations was $134.3 million, down $32.8 million year-over-year, but cash conversion improved to 113.1%.

• Leverage at 2.4x underlying EBITDA pre AASB 16, above the internal policy range of 1.0–2.0x; net debt increased by $35.7 million to $466.1 million.

Outlook and guidance

• FY26 underlying EBITDA pre AASB 16 guidance revised to $180–$200 million, down from $215–$230 million, with benefits expected to be weighted toward Q4.

• Operational improvements and cost reductions are underway, with inventory levels normalized and production settings supporting improved efficiency into 2H26.

• Momentum is expected to build into FY27 as operational foundations strengthen.

• Focus remains on restoring unit cost discipline, improving return on capital, and strengthening cash generation.