Company Interview / Ingham's looks to hatch a recovery

Key points:

Strategy focused on stabilising then optimising operationsBird flu and feed inflation seen as key headwinds for FY27Poultry demand viewed as resilient with in-home consumption rising

Ingham's Group (ASX:ING) CEO Ed Alexander outlines a stabilise-then-optimise strategy for the poultry producer (ASX:ING), targeting improved performance after a challenging FY26. The company reports a 21% fall in underlying earnings to $186 million, with revenue up about 2% and a full-year dividend of 10.1 cents. Alexander states that FY27 remains difficult, citing Middle East-related costs and up to $50 million in higher feed costs, but maintains that Inghams’ national network is designed to manage biosecurity risks, including H5N1 bird flu.

Alexander views the poultry category as resilient amid cost-of-living pressures, pointing to around 3% ongoing category growth and signs of consumers shifting from out-of-home to in-home consumption. He highlights a 17.2% increase in non-Woolworths retail volumes in FY26 after the loss of the Woolworths business, and positions Inghams as winning new business in the retail market.

On the balance sheet, Alexander notes net debt at 2.2 times EBITDA, above the 1–2 times target range, and aims to reduce leverage to enhance resilience and capital flexibility. He expects the board to maintain a disciplined approach to dividends and rejects current takeover speculation, stressing consistent delivery to rebuild investor confidence in the share price.