Inghams Group Limited: Cost Pressures Lead to Earnings Decline and Lowered Outlook
Inghams Group Limited (ASX: ING) is a vertically integrated poultry producer operating across Australia and New Zealand, supplying fresh and value-added chicken and turkey products, along with stockfeed products to internal and external customers.
For the half year ended 27 December 2025, revenue remained broadly stable at AU$1,610.3 million, supported by a 1.4% increase in net selling prices, which largely offset a 0.7% decline in core poultry volumes. EBITDA declined to AU$139.2 million, while Net Profit after Tax fell to AU$18.1 million, reflecting elevated operational costs and margin compression.
Higher expenses were driven by excess inventory management, supply chain transition inefficiencies, customer onboarding costs, and broader inflation across labour, utilities, and packaging. Despite weaker profitability, cash conversion improved to 113.1% due to tighter working capital control.
An interim payout of 4.0 cents per share, carrying full franking credits, was authorised by the board. Management also reduced its full-year profit forecast, lowering guidance for Underlying EBITDA to a range of AU$180 million to AU$200 million, citing slower-than-anticipated operational recovery and cost pressures, with improvement now expected to be weighted toward the second half.
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.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
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Inghams Group Limited: Cost Pressures Lead to Earnings Decline and Lowered Outlook
Inghams Group Limited (ASX: ING) is a vertically integrated poultry producer operating across Australia and New Zealand, supplying fresh and value-added chicken and turkey products, along with stockfeed products to internal and external customers.
For the half year ended 27 December 2025, revenue remained broadly stable at AU$1,610.3 million, supported by a 1.4% increase in net selling prices, which largely offset a 0.7% decline in core poultry volumes. EBITDA declined to AU$139.2 million, while Net Profit after Tax fell to AU$18.1 million, reflecting elevated operational costs and margin compression.
Higher expenses were driven by excess inventory management, supply chain transition inefficiencies, customer onboarding costs, and broader inflation across labour, utilities, and packaging. Despite weaker profitability, cash conversion improved to 113.1% due to tighter working capital control.
An interim payout of 4.0 cents per share, carrying full franking credits, was authorised by the board. Management also reduced its full-year profit forecast, lowering guidance for Underlying EBITDA to a range of AU$180 million to AU$200 million, citing slower-than-anticipated operational recovery and cost pressures, with improvement now expected to be weighted toward the second half.
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.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au