• Underlying EBITDA stable despite challenging market conditions
• Successful Woolworths contract renewal and customer diversification
• Strong New Zealand performance underpinned by business and brand investments
• Tight FY25 cost control and substantial FY26 cost reduction program

Inghams Group Limited (ASX: ING) today announced its FY25 financial results. The company delivered FY25 Underlying EBITDA pre AASB 16 of $236.4 million, slightly above the prior corresponding period (PCP). On an As-Reported (post AASB 16) basis, the company delivered FY25 EBITDA of $392.2 million (-15.3% on the PCP) and NPAT of $89.8 million (-10.2% on the PCP). The decline in As-Reported EBITDA was largely due to the reduction in AASB 16 Leases costs. Core poultry volume declined 1.4% versus the PCP, with a decline in Australian volume (-2.5%) partially offset by solid New Zealand growth (+5.2%). Revenue declined 1.5% on the PCP to $3.15 billion, driven by the modest decline in core poultry volume. Total costs on a post AASB 16 basis increased 0.8% versus the PCP, while total costs (pre AASB 16) declined 1.7% versus the PCP. The company refinanced its existing syndicated finance agreement, providing funding flexibility for operational and automation investment programs. The Board declared a fully-franked final dividend of 8.0 cents per share, with total dividends paid or declared in FY25 representing a payout ratio of 72.7%.

Inghams expects FY26 underlying EBITDA (pre AASB 16) to be between $215.0 million and $230.0 million. Group core poultry volumes are expected to be slightly higher in FY26, with growth in non-Woolworths Retail and QSR, partially offset by a targeted reduction in Wholesale. Net selling prices are expected to be slightly lower in FY26, and operating costs, excluding feed, are expected to rise modestly. Feed costs are expected to provide a modest benefit, contributing to second-half margin recovery, and capital investment is expected to be between $80 million and $100 million.

The company has been and will continue to act decisively to address the issues faced in FY25, reducing excess inventory, adjusting production settings to match demand in each channel, and implementing structural cost reductions across the business. These initiatives are expected to underpin a stronger 2H26 performance and beyond, with the full-year benefit of the cost-out program to be realised in FY27, alongside expected volume growth from expanded customer relationships and the full-year impact of contracts secured in FY26.