The impact of Woolworths reducing Ingham’s supply contract became clear on Friday, when the country’s largest chicken processor presented its FY25 results and reported a 10.2 per cent drop in net profits to $89.8 million. Revenue was $3.1 billion, a drop of 1.5 per cent.
Core poultry volume declined 2.5 per cent on the prior corresponding year (pcp), which the company said reflected the change in supply agreement with Woolworths as well as softer market conditions in key channels during 4Q25.
“At a channel level, Retail volumes declined 4.0kt, driven by the Woolworths transition, and partially offset by new business wins into other Retail and QSR customers. Volumes also declined across Wholesale and Export,” Inghams said.
While group core poultry volumes are expected to be slightly higher in FY26, as well as growth in non-Woolworths Retail and QSR, that will be partially offset by a targeted reduction in Wholesale, where market conditions are forecast to be subdued.
Inghams’ CEO and managing director, Ed Alexander, said the company will be looking to reduce costs by $60-$80 million across staffing, procurement, and site-level operations.
Capital investment is expected to be between $80-$100 million.
