Inghams Group (ASX:ING) Reports FY26 Revenue Increase as Poultry Sales Volumes Recover

Aditi Sarkar

06 November 2026 10:34 PM AEDT

Inghams Group (ASX:ING) Reports FY26 Revenue Increase as Poultry Sales Volumes Recover

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Highlights

Inghams Group recorded FY26 Revenue of AUD 3,227.4 million, up 2.4%, as poultry sales volumes returned to growth during FY26.
Core poultry volumes increased 1.9% to 470.1 kilotonnes, reflecting a recovery in Demand across its principal operating Australian markets overall.
Net selling prices increased 1.4% to AUD 6.40 per kilogram, contributing to the group revenue increase for the financial year.
The company reported underlying EBITDA of AUD 186.4 million alongside improvements in poultry volumes and net selling prices during FY26.

Inghams Group Limited (ASX:ING) is Australia's number-one poultry food products provider, producing and distributing chicken and turkey under the Inghams brand. The company also produces stockfeed for its own operations and external customers. Founded in 1918 as a family business, Inghams was listed on the ASX in 2016 after being acquired by TPG Capital in 2014. The company operates in both Australia and New Zealand. FY26 results for the year ended 29 June 2026 were released on 21 August 2026.

FY26 Revenue and Volume Performance

Inghams reported FY26 revenue of $3,227.4 million, up 2.4% from $3,152.4 million in FY25. Core poultry volume grew 1.9% to 470.1 kilotonnes (kt), driven by customer wins following the transition of the Woolworths Supply arrangement, partially offset by continued softness in the retail and foodservice channels in the first half. Net selling price increased 1.4% to $6.40 per kilogram, reflecting pricing pass-through on higher input costs. External feed revenue declined, partly due to the loss of some external contracts, but core poultry operations — Inghams' primary Business — showed clear volume recovery in FY26 versus the volume weakness of recent periods.

Cost Pressures and Earnings Impact

Inghams' underlying EBITDA pre-AASB16 was $186.4 million in FY26, down 21.2% from $236.5 million in FY25, but within the revised guidance range of $180–200 million (the original FY26 guidance had been $215–230 million, lowered at the half-year result due to the cost of managing excess inventory and supply chain transition inefficiencies). Statutory NPAT fell sharply to $34.6 million (-61.5%), as EBITDA Margin compression, elevated finance costs under AASB16 (lease accounting), and other costs reduced the bottom line. The 1H FY26 underlying EBITDA of $80.6 million was particularly soft (down 35%), with the second half delivering a materially stronger $105.8 million as operational improvements took effect.

Cost Reduction Program and FY27 Outlook

Inghams announced a cost reduction program targeting $60–80 million in annual savings, encompassing procurement efficiencies, labour optimisation, and supply chain rationalisation. These savings are expected to be realised progressively through FY27 and FY28. Management stated that earnings are expected to improve through FY27, supported by the volume recovery, pricing momentum, and cost savings. The company declared a final FY26 Dividend of 6.1 cents per share (fully franked), bringing the total FY26 dividend to 8.5 cents per share. The ING share price declined approximately 37% over the twelve months to August 2026, reflecting investor concern about the sustained earnings deterioration, though analysts note that the operational improvements and cost program provide a basis for recovery.

Stock Price Information

Shares in Inghams Group Limited (ASX:ING) fell approximately 7.2% on the day of the FY26 results release (21 August 2026), trading around $2.06, as the market weighed the in-line but sharply lower EBITDA and the significant NPAT decline. The share price had declined approximately 37% over the prior twelve months to August 2026. As of 6 November 2026, ING shares were trading at approximately $2.06 on the ASX. Investors should refer to ASX announcements at www.asx.com.au and Investor relations at www.inghams.com.au for current pricing.

FAQs

Q: Why did Inghams' profit fall so sharply in FY26 despite revenue growth?

A: Inghams' NPAT fell 61.5% to $34.6 million in FY26 despite revenue growing 2.4%. The key reasons were: (1) higher costs related to managing excess inventory from supply chain transition inefficiencies after the Woolworths contract change; (2) onboarding costs for new customers to replace Woolworths volumes; (3) cost inflation in feed, labour, and energy; and (4) higher finance costs under AASB16 lease accounting as the company operates a large network of leased processing facilities. The underlying EBITDA decline of 21.2% flowed through to an even sharper NPAT reduction as fixed costs and financing charges remained relatively stable.

Q: What happened to Inghams' Woolworths contract?

A: Inghams Group had a long-standing supply arrangement with Woolworths Group for chicken products. This arrangement changed during FY25/FY26, requiring Inghams to transition supply volumes and find replacement customers in a highly competitive poultry market. Managing the excess inventory during the transition and onboarding new customers created significant costs that depressed 1H FY26 earnings. By 2H FY26, most of this transition impact had been absorbed, with management expecting FY27 to reflect the benefits of the new customer base and improved operations.

Q: What is Inghams' cost reduction target and timeline?

A: Inghams announced a cost reduction program targeting $60–80 million in annual savings, to be delivered progressively through FY27 and FY28. The program focuses on procurement (reducing input costs for feed and packaging), labour efficiency (improving productivity in processing operations), and supply chain rationalisation (streamlining logistics and distribution networks). These savings are expected to partially offset ongoing input cost inflation and restore EBITDA margins toward historical levels. Management has indicated that earnings momentum is expected to improve through FY27 as these benefits build.

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