Inghams Group has reaffirmed its FY26 earnings guidance despite higher-than-expected operational costs across its Australian operations. The poultry producer expects underlying EBITDA pre-AASB 16 to be between $215 million and $230 million, with around $80 million expected in the first half.
The company implemented a new organisational structure in 2Q26, consolidating operations into three divisions:
- Primary Processing and Ingredients;
- Agribusiness & Operations Enablement; and
- Value Add & Turkey.
CEO and managing director, Ed Alexander, said the restructure was aimed at simplifying management layers, improving accountability, and reducing complexity, with anticipated annualised savings of $8-$10 million.
While core poultry volume fell by 1.1 per cent in the first 18 weeks of FY26, volumes have stabilised against FY25 levels. Australian non-Woolworths retail was up 16.5 per cent and quick-service restaurant channels up 8.6 per cent.
Wholesale margins have improved by around 39 per cent year-on-year, and group net selling price per kilogram increased by 0.9 per cent compared to FY25.
But the company reported higher farming and processing costs in late FY25, including elevated egg costs from lower volumes, feed conversion inefficiencies, and temporary production inefficiencies from customer portfolio changes. It said corrective measures have been put in place, with early signs of improvement.
Alexander said while first-half earnings will be affected by these short-term cost pressures, operational improvements and the new structure are positioning the company for stronger second-half results and long-term growth.
The company continues to target $60-$80 million in annualised savings across labour, procurement, and site operations. Capital expenditure has been revised down from $80-$100 million to $70–90 million.
Inghams expects earnings to be weighted toward the second half as operational efficiencies take effect and inventory levels stabilise.
