Inghams Group (ASX:ING): Why Did FY26 Revenue Rise While Earnings Declined?

Aditi Sarkar

26 October 2026 11:31 PM AEDT

Inghams Group (ASX:ING): Why Did FY26 Revenue Rise While Earnings Declined?

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Highlights

Inghams Group (ASX:ING) reported FY26 revenue of AUD 3.227bn, up 2.4% YoY.
Core poultry volume increased 1.9% YoY to 470.1kt, alongside a 1.4% rise in net selling prices.
Underlying EBITDA before AASB 16 declined 21.2% YoY to AUD 186.4mn.
Management reported AUD 82.3mn in cost savings and lower net debt during FY26.

Inghams Group (ASX:ING) produces and distributes poultry products in Australia and New Zealand, supplying retail, foodservice and other customers through an integrated operating network. Its FY26 results showed a return to core poultry volume growth, although profitability remained below the previous year. The shares were quoted at AUD 2.12 in the price information dated 26 October 2026. Against this market backdrop, the company’s latest full-year update draws attention to a contrast between improving sales volumes and the continuing pressure on earnings.

Company Business

Inghams Group (ASX:ING) operates across poultry breeding, farming, processing and distribution, with activities in both Australia and New Zealand. The company sells chicken and turkey products and produces stockfeed for internal consumption and external customers. Its performance is shaped by production volumes, processing efficiency, selling prices, customer contracts, feed and energy costs, and the utilisation of its production network.

FY26 Results: Sales and Earnings Diverged

For the 52 weeks ended 27 June 2026, Inghams Group (ASX:ING) recorded revenue of AUD 3.227bn, compared with AUD 3.152bn in FY25, an increase of 2.4% YoY. Core poultry volumes rose 1.9% YoY to 470.1kt, while net selling prices increased 1.4% to AUD 6.40/kg. These figures indicate that both volume and average pricing contributed to top-line growth.

However, statutory EBITDA decreased 24.2% YoY to AUD 297.3mn. Underlying EBITDA before AASB 16 was AUD 186.4mn, down 21.2% YoY, within the company’s guidance range of AUD 180mn–200mn. Statutory net profit after tax fell 61.5% YoY to AUD 34.6mn from AUD 89.8mn. These measures show that revenue growth did not fully offset pressure on operating costs and profitability.

Volume Recovery and Cost Program

In its August 2026 results announcement, Inghams Group (ASX:ING) reported AUD 82.3mn of cost savings through procurement and continuous-improvement initiatives. The company also stated that earnings in the second half exceeded those in the first half, reflecting changes in operating conditions and network management. Core poultry volumes returned to growth in both Australia and New Zealand.

In Australia, the company reported a 2.0% increase in core poultry volumes. Growth in foodservice and quick-service restaurant channels accompanied a broader customer portfolio. Inventory levels also normalised during the year. These operational measures form part of management’s effort to improve production efficiency and customer diversification.

Balance Sheet and Operating Risks

Cash conversion reached 105.5% in FY26, while net debt declined by AUD 27.1mn. Nevertheless, leverage stood at 2.2 times underlying EBITDA before AASB 16, above the company’s stated target range of one to two times. This places continued emphasis on cash generation and earnings recovery.

Inghams Group (ASX:ING) remains exposed to movements in feed, energy, logistics and labour costs, together with processing efficiency and shifts in customer demand. The FY26 earnings decline demonstrates that operating margins can weaken even when poultry volumes and selling prices increase. Performance across individual sales channels and the pace of productivity improvements therefore remain relevant.

What to Watch Next

The key operational indicators for FY27 include growth in core poultry volumes, the sustainability of net selling prices, the progression of cost-saving programs and further diversification of customer contracts. Reported earnings, cash conversion and leverage will also indicate whether operational improvements are translating into stronger profitability. Any new company guidance should be assessed alongside actual trading results rather than treated as an established outcome.

Key Insights

Inghams Group (ASX:ING) entered FY27 after posting higher FY26 revenue and poultry volumes but lower statutory and underlying earnings. Cost savings, reduced inventories and lower net debt provided evidence of operational adjustments, while leverage and margin pressure remained important considerations. The next results will show whether volume recovery and efficiency measures are reflected in improved financial performance.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.