INGHAM’S has reported underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $186.4 million for the year ended 27 June, down 21.2 percent on the previous financial year.

The year saw a return to core poultry volume growth in both Australia and New Zealand, lifting 1.9pc overall to 470,100 tonnes.

Group revenue increased 2.4pc to $3.23 billion, driven by the core poultry volume growth and an increase of 1.4pc in core poultry net selling prices to $6.40/kg.

Underlying net profit after tax fell 40.5pc to $56.6M, despite Ingham’s touting $82.3M in cost savings for the full year through continuous improvement and procurement initiatives.

The company said this was due to a 6.2pc or $169.9M increase in total costs, which reflected growth in production volumes, cost inflation, and production inefficiencies.

It estimated the impact of the current Middle East conflict had contributed additional costs of $13.2M during the year.

Ingham’s chief executive officer and managing director Ed Alexander said the company “made significant progress strengthening the underlying business during FY26”.

“During FY26, we returned to volume growth, materially diversified our customer portfolio, reduced inventory and delivered $82 million of cost savings,” Mr Alexander said.

“Importantly, our operational performance improved through the second half, despite geopolitical impacts.

“Inventories have normalised, new customer volumes were successfully delivered, and Australia returned to volume growth.

“While the operating environment remains challenging, we enter FY27 with a more balanced network, a stronger and more diversified customer portfolio, a refreshed senior management team, and clear visibility of the opportunities still to unlock.”

Positive volume growth

Ingham’s reported a 1.4pc decline in core poultry volumes in FY25, in contrast to FY26, which saw Australian volumes jump 2pc and NZ volumes rise 1.5pc.

Ingham’s said the Australian growth was “broad-based across key channels” with quick service restaurants (QSR) volumes increasing 4.7pc, food service rising 10.3pc, and retail up 1.3pc.

“Importantly, retail volumes excluding Woolworths increased 17.2pc, reflecting significant progress in diversifying the customer portfolio.”

NZ volumes, including wholesale, food service and exports, increased 6.4pc, while export volumes alone rose 41.9pc, supported by the reopening of key offshore markets.

Ingham’s estimates core poultry volumes will continue to grow in FY27 at 2.5-4pc.

Figure 1: Quarterly spot price data for wheat and based on an average of daily market observations. These do not reflect Inghams’ actual consumption prices due to the purchase of delivered grain/soymeal as well as a level of forward cover of 3-9 months. Source: Inghams

Feed costs, revenue down

Overall group feed costs declined $27.6M for the year, reflecting the improvement in market pricing of key feed inputs during the second half of FY24 and early FY25.

Australian cost decreases accounted for the majority of this at $27.7M, providing a material offset to inflation elsewhere in the cost base.

NZ feed costs increased $500,000, with the benefit of lower grain pricing offset by volume growth.

Ingham’s reported volumes for Australia declined 3.3pc to 188,700t due to lower export sales.

Australian external feed revenue fell $11.3M to $116.8M in FY26 due to lower pricing as a result of a reduction in key feed input costs, and sales volumes.

“Australian wheat prices increased through 2H26, reflecting tighter domestic supply expectations and stronger global grain markets.

“Soymeal prices have also increased, adding further pressure to feed costs.”

NZ external feed revenue also fell about 8.6pc to $49.2M, driven by lower external sales volumes and pricing due to a reduction in internal feed input pricing during FY26.

External feed volumes declined 1.7pc versus to 69,700t, with strong second-half growth significantly offsetting the first half loss of some external customer business.

Ingham’s has forecast that, based on current market conditions and projected volumes, feed costs will increase by approximately $40-$50M in FY27.

Source: Ingham’s