Why did Inghams' earnings fall so sharply despite steady revenue?

While revenue remained flat, margins were squeezed by high costs related to excess inventory and "transition inefficiencies" in the supply chain.

How has Inghams Group (ASX:ING) changed its full-year guidance?

The company lowered its FY26 underlying EBITDA guidance to a range of $180 million to $200 million, down from the previous forecast of $215 million to $230 million.

Is Inghams still profitable and paying dividends?

Yes, Inghams remains profitable with an $18.1 million NPAT for the half, though this is much lower than in previous years. The company declared an interim dividend of 4.0 cents per share, which is a significant reduction from the 11.0 cents paid in the prior corresponding period.

What are the main "bull" points for investors looking at ING now?

The bullish case rests on a strong second-half recovery, as earnings are expected to be heavily weighted toward Q4 FY26.

What are the key risks (bear case) for Inghams shareholders?

The primary risk is that the "operational reset" continues to stall, missing the ambitious second-half recovery targets. Additionally, investors are watching for increased competition in the final quarter of FY26, as a competitor’s new processing plant could potentially flood the market with supply and force prices down.

How does Inghams' performance compare to its poultry industry competitors?

While specific financial data for private rivals like Baiada is less transparent, shareholder concerns at the recent AGM highlighted that Inghams has been losing market share.

Agriculture

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Inghams H1 profits plunge amid operational reset

Written by Heidi Cuthbert Published Feb 20, 2026, 12:15 AMLast Updated Jul 6, 2026, 6:52 AM

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.

Inghams H1 profits plunge amid operational reset

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