Chicken seller's wings clipped again as profit tumbles

Australia's largest chicken meat supplier has delivered a slump in annual profit on the back of cost increases and says the operating environment remains challenging.

Inghams Group, which farms, processes, and sells chicken and turkeys, made a net profit of $34.6 million in 2025/26, down 61.5 per cent.

The annual result comes on the back of a 65 per cent fall in first-half earnings to $18.1 million reported in February.

Full year revenue was $3.2 billion, a gain of 2.4 per cent, on underlying earnings - before interest, tax, depreciation, and amortisation - of $186.4 million.

The underlying result, which fell by more than 21 per cent, was at the lower end of its guidance of between $180 million and $200 million for the year ended June 30.

"Encouragingly, our earnings in the second half were materially above the first half, reflecting the improved underlying operating metrics," chief executive Ed Alexander said on Friday.

Inghams also racked up cost savings of $82 million after cutting inventory - mainly processed chicken and turkey - and diversifying its customer list, as its key Australian market returned to volume growth.

In total, it processed just over 470 kilotonnes of chickens and turkeys in the year, as the core net selling price increased 1.4 per cent to $6.40 per kilo - still close to its best in at least four years.

Its Australian revenue rose 3.5 per cent to $2.7 billion, on a 2.4 per cent increase in the net country sale price to $6.50 per kilo.

Inghams sells products to supermarket giant Woolworths, but now at a lower volume after a new supply contract was settled in 2025, although this has been offset by gains for other retailers.

Looking ahead, the poultry group said input cost inflation continues to be a challenge, alongside softer Australian wholesale market conditions.

"While the operating environment remains challenging, we enter financial year 2027 with a more balanced network, a stronger and more diversified customer portfolio," Mr Alexander said.

Inghams, which trades around $2.20 per share, declared a final dividend of 6.1 cents per share, taking the total for the year to 10.1 cents.