Inghams Group Financial Results for H1 2026: Stability Amid Rising Costs

Inghams Group has reported its financial outcomes for the first half of the 2026 fiscal year, showcasing stable poultry volumes and overall revenue figures compared to the previous year. Nevertheless, the company faced increased costs that notably impacted its earnings.

Core Poultry Production and Revenue

During the six-month period, Inghams’ core poultry production totalled 232,600 metric tons, reflecting a minor decline of 0.7% compared to the same timeframe last year. This slight decrease was counterbalanced by a 1.4% rise in net selling prices, allowing total revenue to reach approximately AUD 1.61 billion (US$ 1.14 billion), showing only a marginal year-on-year reduction.

Impact of Rising Expenses

Despite a stable top-line performance, the company experienced a 5% increase in total expenses across its operations. The surge in costs can be attributed to several factors, including:

• Excess inventory management
• High logistics and supply chain expenses
• Decreased farming performance
• Challenges associated with transitioning all value-added production to the Ingleburn facility

These cost pressures culminated in a significant 34% decline in EBITDA, which fell to AUD 139.2 million compared to the previous year.

Cost-Reduction Initiatives

Amidst the rising costs, Inghams reported progress in its cost-reduction efforts. Internal feed costs were successfully decreased by nearly AUD 25 million, providing some financial relief during challenging operational conditions.

Performance in Australia

Inghams’ major operating segment, Australia, generated over AUD 1.35 billion in revenue for the half-year, effectively matching revenue figures from the same period in 2025. While core poultry volumes experienced a slight decline due to the company’s adjustments following the loss of volume from Woolworths, stronger pricing in retail and wholesale sectors facilitated a 1.1% increase in net selling prices. However, external feed sales in Australia fell by more than 9%, impacted by lower volumes and pricing. Operating costs in the Australian segment climbed 6.4% year-on-year, although reduced feed ingredient prices helped cut feed expenses by nearly AUD 24 million compared to the first half of the previous financial year.

New Zealand Performance

In New Zealand, Inghams demonstrated resilient performance, with revenue nearing AUD 256 million. This represented a slight decline in Australian dollar terms, but a 1.4% increase when considered in local currency. Poultry revenue increased by 1%, bolstered by robust branded product sales driving a 4% increase in net selling prices in New Zealand dollars. However, the closure of several export markets led to a 1.6% fall in core poultry volumes. Feed revenue in New Zealand dwindled by nearly 12% due to decreased sales volumes and softer pricing. Unlike Australia, overall costs in New Zealand declined by 2.5% year-on-year, primarily due to lowered internal feed prices.

Conclusion

Overall, Inghams Group’s results reflect a company sustaining revenue stability within its key markets, all while navigating significant cost pressures that adversely affected profitability during the first half of FY2026.