Inghams cuts FY27 profit guidance by $10M
By Liezl GambeKey points
- Inghams trimmed the top end of its FY27 underlying earnings guidance by $10 million due to higher costs and weak wholesale pricing.
- The poultry producer reported group core volumes rose 5.3% despite an 8.3% drop in Australian wholesale prices.
- The business reached an agreement in principle on a long-term Woolworths supply deal extending beyond 2030 to underpin retail volume growth.
Poultry supplier Inghams Group (ASX:ING) lowered the upper end of its FY27 underlying earnings guidance by $10 million following sustained cost inflation and softer wholesale prices.
While core sales volumes grew 5.3% across the first 18 weeks of FY27, local wholesale prices fell 8.3% against the prior corresponding period.
“While volume growth is encouraging, higher costs and softer wholesale market conditions have impacted earnings, leading us to reduce the upper end of our FY27 guidance,” said Inghams CEO and Managing Director Ed Alexander.
The group reported cost increases across feed, fuel, freight, packaging, and labour alongside a 0.8% pricing decline in New Zealand.
Following the announcement, the Inghams share price was unchanged at $2.23.
The supplier reached an in-principle agreement with supermarket chain Woolworths on a supply arrangement extending past 2030 to protect its core volumes.
Management stated that full-year earnings remain heavily weighted to the second half as operations focus on commercial efficiency and retail channel demand.
