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.
Inghams Posts Higher FY26 Revenue but Earnings Fall Back
Highlights:
Overview
Inghams Group Limited (ASX: ING), the largest integrated poultry producer in Australia and New Zealand, delivered a mixed result for the 2026 financial year: higher sales but weaker profit. Its FY26 Annual Report, released in August 2026 and covering the 12 months to 30 June 2026, described progress on operations, customer relationships and strategic investment, alongside persistent cost pressure.
Sales Rise While Earnings Slip
Revenue reached AU$3.23 billion, 2.4% above the AU$3.15 billion booked a year earlier. Rising costs, however, cut into earnings. Statutory EBITDA fell 24.2% to AU$297.3 million, and underlying EBITDA before AASB 16 declined 21.2% to AU$186.4 million.
Statutory net profit after tax dropped 61.5% to AU$34.6 million, compared with AU$89.8 million in FY25. Inghams pointed to cost inflation and extra expenses as the main drivers. These included roughly AU$50 million of embedded inflation and AU$13 million in added transport and packaging costs linked to the Middle East conflict in the second half. Cheaper feed, together with continuous improvement and procurement programmes, delivered AU$82 million in savings that offset part of the pressure. Cash conversion rose to 105.5%, up 8.6 percentage points on the prior year.
Volumes Back on a Growth Path
Core poultry volumes rose 1.9% over the year, with Australia up 2.0% and New Zealand up 1.5%. The customer base also widened across retail, quick service restaurants and food service. Australian food service volumes grew 10.3%, and a new Nando’s contract boosted the quick service restaurant channel.
Inghams kept investing in processing capacity, automation and new product lines. This included expanding the premium poultry business of Bostock Brothers in New Zealand and moving into pet food ingredients through freezing technology at Somerville.
Lower Debt and Strategic Direction
By the end of FY26, net debt had been trimmed by AU$27.1 million to AU$403.3 million. Even so, leverage of 2.2 times underlying EBITDA before AASB 16 remained above the company’s one-to-two-times target range. Fully franked dividends paid or declared totalled 10.1 cents per share, down from 19.0 cents in FY25.
In May 2026, the company introduced its Horizon Strategy, which aims to steady operations, lift margins and pursue opportunities that raise value per bird.
Summary
Inghams’ FY26 result combined higher revenue and poultry volumes with lower earnings, as inflation and operating costs took their toll. Management is focusing on operational efficiency, paying down debt and targeted investment to support sustainable growth and better returns for shareholders.
Note: All data presented is based on information available at the time of writing.
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