Inghams profits fall -10% YoY; cites challenging market and accounting rules

Ingham’s Group (ASX:ING) was down -20% to around $2.80 in late morning Friday trades as the company’s NPAT fell -10% YoY.

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Profits after tax came in at $89.8M, for which the company ‘largely’ blamed technical changes around AASB 16 reporting rules which address leases.

(That’s related to the FY24 acquisition of a $76M processing facility in South Australia, the company bought two years ago, which it has been leasing since 2014.)

But those don’t necessarily address why revenues had also fallen, for which the Australian segment dropped -2.6% vs pcp, or expressed another way, saw 4,000 tonnes less chicken sold in FY25. The Aussie company pointed to “softer” demand, especially in the last three months, or so (4Q25).

Probably most important for risk sentiment, the company cited “challenging Australian market conditions,” which, explained in a sentence, was a bleaker story than what a good-vibes market that just hit 9,000pts may have wanted to hear.

That said, Ingham’s has renewed a contract with Woolworths this year, and that was a headlining success point in the Friday disclosure.

“We remain confident in our long-term value proposition, underpinned by solid business and market fundamentals and a clear strategic agenda,” Inghams’ CEO Ed Alexander said, framing the chicken giant’s earnings with language not unlike what you get from junior explorers.

To be fair, it’s obvious demand for the most widely consumed bird on earth isn’t going to go anywhere in the long term and that Australia’s increasing population poses relatively promising indications for the future of the company.

ING last traded at $2.85/sh.

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