Inghams Group (ASX:ING) reported a challenging first half for the 2026 fiscal year, with underlying earnings falling significantly as the company navigates a complex operational "reset."
For H1 FY26, underlying EBITDA (pre AASB 16) landed at $80.6 million, marking a sharp 35.0% decline compared to the prior corresponding period.
The bottom line saw an even steeper contraction, with net profit after tax diving 64.9% to $18.1 million.
CEO Ed Alexander characterised the results as "disappointing," attributing the slump to a combination of excess inventory costs, supply chain transition inefficiencies, and expenses related to customer on-boarding.
While core poultry volumes saw a slight dip of 0.7%, a recovery in the second quarter—bolstered by new business wins—suggests a shift in momentum.
The group managed to achieve a 1.4% increase in net selling prices, driven largely by a 4.5% lift in wholesale pricing.
However, the full-year outlook has been tempered; Inghams reduced its FY26 guidance for Underlying EBITDA to a range of $180 million to $200 million.