Inghams flags up to $10m impact to FY26 earnings from higher fuel costs
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The news: Poultry producer Inghams has reaffirmed its FY26 underlying earnings before interest, tax, depreciation and amortisation (EBITDA) guidance to between $180 million and $200 million after recording a slight increase in core poultry volumes during the first nine months of the financial year.
The numbers: For the first half of FY26, group core poultry volumes increased 1.1% from the prior corresponding period, with the Australian business rising 1.2% and New Zealand advancing 0.5%. Group core poultry net selling prices increased 1.1% from the prior year.
Inghams has also flagged a material impact on its FY26 earnings of between $7 million to $10 million due to higher diesel fuel costs and fuel levies for its transport providers.
The context: The company stated that the guidance reflects modest poultry volume growth and operating cost growth, which are materially offset by $60 million to $80 million in annualised savings from labour and site operations initiatives.
It added that feed costs are expected to provide modest benefit to the FY26 outlook compared to the prior financial year. It also expects revised capital expenditure to be approximately $80 million.
The source: ASX
