Key Highlights

  • Core poultry volumes rose 5.3 percent across the first 18 weeks of FY27, with Australia up 4.8 percent and New Zealand up 8.0 percent.
  • Australian Wholesale pricing fell 8.3 percent against the prior corresponding period.
  • The top end of FY27 guidance has been reduced by $10 million for both underlying EBITDA and underlying EBIT.
  • An in-principle agreement has been reached on a new long-term Woolworths Supply arrangement extending beyond 2030.

Inghams Group Limited (ASX:ING) has issued a trading update covering the first 18 weeks of FY27 to 31 October 2026, dated 12 November 2026. The update combines a rise in poultry volumes with lower pricing in the wholesale channel and higher cost growth across the business. The company has also reached an in-principle agreement on a new long-term supply arrangement with Woolworths, extending beyond 2030.

Volumes and pricing

Group core poultry volumes increased 5.3 percent on the prior corresponding period, with growth in Australia of 4.8 percent and in New Zealand of 8.0 percent. Retail was the main driver. Demand through out-of-home channels was softer, which the company links to cost-of-living pressures. Australian core poultry prices rose 1.9 percent, reflecting channel and product mix, while New Zealand pricing fell 0.8 percent in New Zealand dollar terms.

The Australian Wholesale channel is the most pressured area in the update. Pricing in that channel fell 8.3 percent, and the recovery the company had anticipated has been slower than expected, reflecting softer out-of-home demand and changes in customer behaviour.

Costs and guidance

The company reports meaningful cost growth across feed, labour, energy, fuel and freight, packaging and ingredients compared with the prior period. Those costs, together with pressure on wholesale pricing, led the board to reduce the top end of FY27 guidance by $10 million for both underlying EBITDA before AASB 16 and underlying EBIT. The company expects core volumes and net selling prices to be higher than last year, with Earnings significantly weighted to the second half.

Final Word

Inghams is growing volumes, particularly in retail, but higher costs and softer wholesale pricing are reducing the earnings outlook at the top of its range. The Woolworths agreement gives the Business a longer contractual base, although its financial terms are not disclosed in the update. The second-half earnings weighting means the next updates will be important for judging whether Volume growth can be converted into earnings.