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, onboarding costs, 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, 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 $1.0M year-over-year; core poultry revenue up 0.7%.

• EBITDA declined 33.8% to $139.2M; underlying EBITDA (pre AASB 16) fell 35% to $80.6M.

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

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

• Leverage increased to 2.4x underlying EBITDA (pre AASB 16), above the 1.0–2.0x internal policy range, with net debt at $466.1M, up $35.7M.

Outlook and guidance

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

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

• Stronger second half performance anticipated, with improved earnings momentum into FY27.

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

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