Inghams Group (ING) H2 2026 earnings summary

Executive summary

• FY26 results showed core poultry volume growth of 1.9% and revenue up 2.4% year-over-year, but underlying EBITDA pre-AASB 16 fell to AUD 186.4 million, down 21.2%, and underlying NPAT pre-AASB 16 dropped to AUD 56.6 million, a 40.5% decrease.

• Net profit after tax was AUD 34.6 million, down 61.5% year-over-year, impacted by a significant tax provision.

• Cost discipline and procurement initiatives delivered AUD 82.3 million in savings, offsetting some inflation and geopolitical impacts.

• Cash conversion improved to 105.5%, with net debt reduced by AUD 27.1 million to AUD 403.3 million.

• Fully franked dividends for FY26 totaled AUD 0.101 per share (70% payout ratio), with a Dividend Reinvestment Plan introduced.

Financial highlights

• Revenue grew 2.4% year-over-year to just over AUD 3.2 billion, driven by higher core poultry volumes and modest price growth.

• Total costs increased 6.2% due to production increases, input cost inflation, and integration costs.

• Underlying EBIT was AUD 153.6 million, down 30.0% year-over-year.

• Cash conversion ratio improved to 105.5%, supported by working capital initiatives.

• Capital expenditure was AUD 77.4 million, below the AUD 80 million target.

Outlook and guidance

• FY27 guidance for underlying EBIT (post AASB 16) is AUD 155–180 million, representing 1–17% growth year-over-year.

• Core poultry volume growth expected at 2.5–4.0% in FY27.

• Feed costs projected to rise by AUD 40–50 million due to higher input prices.

• Capital expenditure planned at AUD 80 million.

• Assumes no material disruption from H5N1 Avian Influenza.