Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
Can Poultry Producer Costs and Mining Explosives Growth Shift ASX Investor Focus?
Highlights:
Two ASX Updates Highlight Different Earnings Conditions
Inghams Group Limited (ASX: ING) and Orica Limited (ASX: ORI) released company updates on 12 November 2026, outlining contrasting conditions for Australian-listed businesses. Inghams shares traded at AU$2.240, up approximately 0.448%, while Orica shares stood at AU$22.940, up approximately 0.614%.
Inghams’ Volume Growth Faces a Cost Test
Inghams reported a 5.3% increase in group core poultry volumes during the first 18 weeks of FY27 compared to the prior corresponding period. Australian volumes grew 4.8% and New Zealand volumes rose 8.0%, with retail demand providing the main support. Demand through out-of-home channels, including restaurants and pubs, was softer.
The volume growth has not fully translated into stronger earnings. Australian core poultry prices rose 1.9%, supported by changes in sales channels and product mix, while wholesale prices declined 8.3%. Inghams said the anticipated improvement in wholesale conditions was slower than expected. Lower demand and revised customer sourcing arrangements added to the market’s excess supply.
The company reduced the top end of its FY27 underlying EBIT guidance by AU$10 million to AU$170 million. The revised range is AU$155 million to AU$170 million. Underlying EBITDA guidance, measured before AASB 16, is now AU$190 million to AU$210 million, also AU$10 million below its former upper limit.
Inghams reported higher expenses for feed, staffing, power, fuel, transport, packaging and ingredients. Its guidance assumes AU$40 million to AU$50 million of higher feed costs and AU$30 million in additional transport and packaging expenses associated with the Middle East conflict. Capital expenditure is forecast at AU$80 million.
A proposed long-term supply arrangement with Woolworths (ASX: WOW) has reached agreement in principle on key commercial terms. The arrangement would extend the relationship beyond 2030, though the terms remain confidential. Inghams expects earnings to be weighted towards the second half, assuming wholesale pricing improves progressively.
Orica’s Diversified Earnings Base Expands
Orica delivered FY2026 revenue of AU$8,263.5 million, up 1%, and earnings before interest and tax of AU$1,056.9 million, up 7%. Excluding significant items, Orica delivered AU$589.7 million in after-tax profit, a 9% year-on-year increase. Statutory net profit was AU$264.2 million and included AU$325.5 million in after-tax significant items.
Digital Solutions and Specialty Mining Chemicals each grew EBIT by 25%, together contributing nearly 23% of group earnings. Blasting Solutions remained the largest segment, with EBIT up 2% to AU$880.9 million. Orica’s net operating cash flow was AU$758.3 million after AU$344.2 million in cash outflows related to significant items. Leverage stood at 1.46 times, within its target range.
The company declared a final dividend of 35.5 cents per share, bringing its full-year dividend to 64 cents, up 12%. It also completed a AU$500 million on-market share buy-back. For FY2027, capital expenditure is expected to be AU$470 million to AU$500 million, excluding approximately AU$130 million for the Hunter Valley Hydrogen Hub.
Execution Will Shape the Next Results
Inghams’ near-term performance depends on controlling costs and achieving the expected wholesale recovery. Orica enters FY2027 with growth across more of its portfolio, but must convert that momentum into durable returns while managing investment and operating demands. The companies’ next results will show how effectively each addresses those priorities.
Note- All data presented is based on information available at the time of writing.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.Disclosure: The information mentioned above has been sourced from the company reports and a third-party database, i.e. Koyfin. Investors are advised to use strict stop-loss to protect their investments in case of any unfavorable/uncertain market events.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au