Inghams Group Ltd

ASX:ING

Result Miss: Inghams' first half performance was below expectations, impacted by elevated operational costs and supply chain inefficiencies, particularly in Australia.

Guidance Downgrade: FY26 EBITDA guidance was lowered to $180–200 million, with management citing slower-than-expected operational recovery and improvements now expected mainly in Q4.

Cost Reduction Progress: $40 million in cost savings achieved so far in FY26, on track for full-year target of $60–80 million, though savings are being offset by inflation and transitional inefficiencies.

Inventory Normalization: Processed poultry inventory was reduced by $27 million, improving working capital and supporting a return to normal production and lower unit costs.

Volume Growth Returning: While group poultry volumes were down 0.7% for the half, the trend improved and positive volume growth resumed in Q2, especially in non-Woolworths retail and QSR channels.

Balance Sheet: Net debt rose to $466.1 million and leverage reached 2.4x, above policy range, but is expected to decline as earnings recover.

Dividend Maintained: An interim dividend of $0.04 per share was declared, in line with payout policy.