Inghams Group, a major poultry producer, experienced a significant drop in its share price on Friday, tumbling over 15 per cent after the company revised its full-year guidance for the 2026 fiscal year. This announcement followed a weaker-than-anticipated first-half performance. Inghams is a leading poultry company that supplies chicken and turkey products to retailers, food service providers, and quick-service restaurant chains across Australia and New Zealand. They operate processing plants and farms throughout both countries.
UBS analyst Evan Karatzas highlighted that Inghams’ first-half results fell short of expectations. The company’s pre-AASB 16 EBITDA was downgraded to a range of $180 million to $200 million, a reduction from the previously projected $215 million to $230 million. This downgrade reflects a slower-than-anticipated realisation of cost-out benefits.
While Inghams indicated a potential earnings recovery in FY27, Karatzas noted that the market would likely require tangible evidence before fully incorporating this recovery into its valuation. There were some modest positives in the report, with wholesale channel pricing showing signs of improvement amid otherwise challenging market conditions. The guidance downgrade represents an approximate 15 per cent reduction at the midpoint of the projected range.
The company’s net profit for the first half was reported at $21 million, which was approximately 6 per cent below analyst expectations. The market reacted negatively to the news, with shares last trading down by 15.2 per cent.
