Inghams Group (ING) H2 2025 earnings summary

Executive summary

• Underlying EBITDA pre-AASB 16 was stable at AUD 236.4 million, with strong New Zealand growth from the Bostock Brothers acquisition offsetting Australian challenges, including cost-of-living pressures and Woolworths contract changes.

• Group core poultry volume declined 1.4% year-over-year, with Australia down 2.5% and New Zealand up 5.2%.

• Leadership transition occurred with Andrew Reeves stepping down as CEO after guiding the company through the pandemic.

• Tight cost control and AUD 57.2 million in feed cost savings helped offset revenue and margin pressures.

• Successful renewal of the Woolworths contract and onboarding of new customer volumes.

Financial highlights

• Group revenue declined 1.5% to AUD 3.15 billion, mainly due to lower core poultry volumes and external feed revenue.

• Underlying EBITDA pre-AASB 16 was AUD 236.4 million (flat year-over-year); reported EBITDA was AUD 392 million, down 15.3%.

• Underlying NPAT pre-AASB 16 was AUD 95.2 million, down 11.6% year-over-year; reported NPAT was AUD 89.8 million, down 10.2%.

• Cash conversion remained strong at 96.9%, with cash flow from operations at AUD 319.3 million.

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

Outlook and guidance

• FY26 underlying EBITDA pre-AASB 16 is guided at AUD 215–230 million, with earnings expected to be second-half weighted as cost-out and operational reset benefits materialize.

• Group core poultry volumes are expected to be slightly higher, with Australian growth in non-Woolworths retail and QSR, and continued strong performance in New Zealand.

• Net selling prices are expected to be slightly lower, and operating costs (excluding feed) to rise modestly, offset by cost reduction initiatives targeting AUD 60–80 million in annualized savings.

• Capital investment for FY26 is projected at AUD 80–100 million, focused on efficiency and automation.