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FY26 INTERIM FINANCIAL RESULTSPRESENTATION20 FEBRUARY 2026 For personal use only
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DISCLAIMERImportant noticeThe material in this presentation is general background information about the activities of Inghams Group Limited (Inghams) and its subsidiaries (Inghams Group), and is current at the date of this presentation, unless otherwise noted. The content is information given in summary form and does not purport to be complete. It should be read in conjunction with Inghams Group Limited other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au. This presentation is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor.This presentation includes non-IFRS information including EBITDA, Underlying and Pre AASB16 Leases, which Inghams considers useful for users of this presentation to reflect the underlying performance of the business. Definitions are included in the Appendix defining the non-IFRS information used. Non-IFRS measures have not been subject to audit.Forward looking statements in this presentation should not be relied upon as an indication or guarantee of future performance, and they involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Inghams Group Limited.The financial tables presented in this presentation are subject to rounding.All financial information provided is on an As-Reported (post AASB 16) basis unless otherwise stated. 21H26 Results Presentation | 20 February 2026 For personal use only
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1H26 RESULTS WEBCAST 1H26 Results Presentation | 20 February 2026 3 This presentation accompanies the live webcast, to be hosted by Ed Alexander (CEO & MD) and Gary Mallett (CFCO), scheduled for 11.00am AEDT on 20 February 2026. To register and join the webcast, please use the following link:Øhttps://meetings.lumiconnect.com/300-431-047-532 We suggest participants register and login to the webcast 15 minutes prior to the advised start time.A replay of the webcast will be made available as soon as possible following the conclusion of the event on the Investor Centre of the Inghams Group website. Broiler farm, Queensland For personal use only
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ACKNOWLEDGEMENT OF COUNTRY We respectfully acknowledge the traditional owners both past and present, as custodians of this land we are meeting on today. 4Artist: Kelly Taylor www.ktaboriginalfineart.store1H26 Results Presentation | 20 February 2026For personal use only
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IMPROVING FUNDAMENTALS AS WE ADDRESS NEAR-TERM OPERATIONAL PERFORMANCE AND COST PRESSURES 1H26 Results Presentation | 20 February 2026 Broiler farm, New Zealand5 Ø1H earnings impacted by cost increases•Higher operational costs in Australia across farming, processing and supply chain which arose toward the end of FY25ØInventory levels reduced with production normalised into Q3•Costs elevated due to supply chain changes as new customers and products on-boarded, higher cost-to-serve, and measures taken to reduce excess inventory•Reduced inventory levels supporting a return to normal production settings and improved network efficiency ØThe business returned to volume growth in Q2 driven by new business•Retail customer diversification through strong non-WOW volume growth•Strong QSR growth underpinned return to volume growth in Q2ØPricing improved as Wholesale channel fundamentals improved•Net selling price growth in 1H26 driven by growth in Retail, and recovery in Wholesale pricing due to improved market fundamentals ØNew Zealand remained resilient•Top-line performance reflects stable and efficient operations and price growth•Core volumes were impacted by lower Other Poultry Product sales due to Export channel closures For personal use only
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1H26 KEY PERFORMANCE INDICATORS 1H26 Results Presentation | 20 February 2026 6 GroupAustraliaNew ZealandCore Poultry volume (kt)232.6195.537.2Change on PCP (%)(0.7)(0.5)(1.6)Core poultry net selling price ($/kg)6.436.496.82Change on PCP (%)1.41.14.4EBITDA (Underlying pre AASB 16) ($M)80.658.022.6Change on PCP (%)(35.0)(42.3)(3.4)EBITDA margin5.04.38.8EBITDA2,3/kg (cents)34.729.760.8Change on PCP (%)(34.4)(42.0)(1.5)Cash flow from operations ($M)134.3- -Change on PCP (%)(19.6)- -Group leverage4 2.4x- -Change on Jun-24 (x) 0.6x- -Dividend (fully franked)4.0cps- -Change on PCP (cps)(7.0)- -All data in AUD unless otherwise noted. 1.New Zealand dollars 2.Underlying pre AASB 163.Based on Core Poultry volume4.Based on rolling 12 months Underlying EBITDA pre AASB 16 1 Broiler farm, New Zealand For personal use only
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KEY DRIVERS OF 1H26 EARNINGS RESULT 1H26 Results Presentation | 20 February 2026 7 Reconciling the movement in EBITDA pre AASB 16 1. Lower feed costs of $24.9 million reflect net reduction in internal feed costs of $21.1 million, grossed up to reflect Farming movement of $3.8 million (1) 124.0 -19.0-6.7-3.8-1.8-9.0 24.9-1.080.6 -27.1 1H25Inventory reductionSupply chain and logisticsFarming Ingleburn transition One-off itemsNet cost growth & inflationLower feed costsGroup revenue1H26$0M $20M $40M $60M $80M $100M $120M $140M 1H25 1H26 For personal use only
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PROGRESS ON FY26 KEY INITIATIVESØStrong customer outcomes and return to volume growth•Group returned to volume growth in Q2; QSR volumes increased, supported by new business•Voice of Customer metrics have improved across major segments; recognised as Woolworths Group Protein Trade Partner of the year and Nando's Supply Partner of the Year Award; high customer service levelsØStrong cash conversion, up 18.6 percentage points to 113.1%•Working capital improvement underpinned strong 1H26 cash conversion•Processed poultry inventories reduced by $27.1MØDelivering FY26 cost-out and organisational restructure•Organisational restructure implemented to drive simplification and clearer accountability; annualised $8-10M saving•Solid progress during 1H26 against Group cost reduction program, targeting annualised savings of $60M-$80MØRestoring Australian operating performance in FY26•Actions underway to improve farming, processing and supply chain performance; Q2 unit costs improved versus Q1, and yield improvements delivered through 1H26•Production settings normalised into Q3 driven by return to normal inventory levels 1H26 Results Presentation | 20 February 2026 Broiler farm, New Zealand8 For personal use only
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Quarterly data shows improving volume trends versus PCP , and sequential growth (versus 2H25) across all markets and major channels CORE POULTRY VOLUME §Australian volume was slightly lower versus PCP (-0.5%), with the decline in Retail channel growth largely offset by solid growth in QSR (+9.0%) and Wholesale (+4.5%)§New Zealand volumes declined 1.6% versus PCP due to lower Other Poultry Product sales (-41.5%) caused by the closure of key Export markets during the period§Retail volumes declined 5.7% due to the net effect of Woolworths-related adjustments in FY25. NZ Retail volumes declined with volume movements across channels to maximise value outcomes-AU Retail (ex-WOW) grew strongly at +16.6% versus PCP and +9.3% versus 2H25, as the Group diversified its customer supply arrangements§QSR growth of 7.6% was driven by strong AU growth of 9.0%, reflecting new Nandos supply agreement, and growth in ‘McNuggets’ volume§Combined Food Service/Wholesale/Export volumes increased 3.8% versus PCP:-Strong AU Food Service growth versus PCP (+11.9%) due to increased customer demand, partially offset by a 15.4% decline in NZ volumes due to reduction in volume into Gilmours, and a previous Food Service buying group customer becoming a direct Wholesale customer-While AU Wholesale volumes grew 4.5% versus PCP , volumes declined 5.0% versus 2H25 as sales volumes were adjusted downward to match demand1H26 Results Presentation | 20 February 2026 9 Core poultry volumes -0.7% versus PCP , with improving trends in Q2CORE POULTRY VOLUME (KT) -0.7%-0.5%-1.6%-5.7%+7.6%+3.8%+2.4%+2.0%+4.5%+2.0%+6.0%+1.6% Group channel performance POSITIVE TREND IN GROUP CORE POULTRY VOLUME GROWTH 234.2196.4 37.8 123.7 34.775.8 232.6195.5 37.2 116.6 37.378.7 GroupAustra liaNew ZealandRetailQSRFood Service,Wholesale, Export 1H 252H 251H 26 1H26 v PCP1H26 v 2H25 10 5.0 11 0.0 11 5.0 12 0.0 1Q2Q3Q4Q20 2520 26 (KT) -1.7%+0.3% Forecast Forecast For personal use only
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CORE POULTRY NET SELLING PRICES ($/KG) (NSP)§Group core poultry NSP increased 1.4% versus PCP to $6.43-Australia core poultry NSP +1.1% versus PCP , while NZ NSP (NZD terms) increased 4.4%-Retail NSP increased 1.5%. AU Retail NSP increased 1.5% due mainly to a favourable mix shift to Freezer, predominantly in Further Processed products which have higher price/kg, while NZ Retail NZD pricing increased 3.9% (NZD) due partly to ~11% growth in higher value Further Processed products§QSR NSP eased versus PCP (-1.2%), with a small decline in AU pricing following the conclusion of a new Nandos supply agreement and growth in McDonalds McWings demand which has a lower price/kg§Combined Wholesale, Food Service & Export pricing increased 4.7% versus PCP:-Group Wholesale pricing recovered during 1H26 (+4.5%) versus PCP , driven by AU Wholesale pricing growth of 3.9% as channel supply conditions stabilised-AU Wholesale pricing as at Week 26 showed strong growth (+20.9%) versus Week 52 of FY25, driving strong margin growth over the same period in Wholesale-Export channel pricing growth was strong versus PCP (+20.5%) underpinned by solid growth in both AU (+19.6%) and NZ (+22.6% in NZD terms) as export markets progressively returned to normal operations Modest 1H NSP improvement (+1.4%) underpinned by Wholesale price growth 10 GROUP CORE POULTRY NET SELLING PRICES ($/KG) 1H26 Results Presentation | 20 February 2026 SUSTAINED RECOVERY IN WHOLESALE PRICING +1.4% $5.33 $5.79 $6.28 $6.34 $6.43 1H222H221H232H231H242H241H252H251H26 $4 .00$4 .20$4 .40$4 .60$4 .80$5 .00$5 .20$5 .40$5 .60 Wk 52 (F Y25)Wk 1 (FY26)Wk 2Wk 3Wk 4Wk 5Wk 6Wk 7Wk 8Wk 9Wk 10Wk 11Wk 12Wk 13Wk 14Wk 15Wk 16Wk 17Wk 18Wk 19Wk 20Wk 21Wk 22Wk 23Wk 24Wk 25Wk 26 ($/KG) +20.9% For personal use only
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FINANCIAL RESULTSGary MallettChief Financial and Commercial Officer Broiler farm, QueenslandFor personal use only
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PROFIT & LOSS($M)1H261H25Variance%Core poultry volume (kt)232.6234.2(1.6)(0.7)Net selling price ($/kg)6.436.340.091.4Revenue1,610.31,611.3(1.0)(0.1)Cost of sales(1,279.9)(1,223.0)56.94.7Gross Profit330.4388.3(57.9)(14.9)EBITDA139.2210.4(71.2)(33.8)Depreciation & Amortisation(76.4)(100.0)23.6(23.6)EBIT 62.8110.4(47.6)(43.1)Net finance expense(38.8)(37.7)(1.1)(2.9)FX gain/(loss)1.50.01.5-Tax expense(7.4)(21.2)(13.8)(65.1)NPAT 18.151.5(33.4)(64.9)All figures are As-Reported (post AASB 16). Due to minor rounding differences, figures presented may not add up precisely to totals provided. 12 §Revenue was largely flat (-0.1%) versus PCP due to:‒Higher core poultry revenue (+0.7%) driven by growth in Net Selling Prices in both markets‒Lower By-products revenue (-5.1%) versus PCP due to lower AU pricing ‒A reduction in external feed revenue (-9.9%) due to the combined effects of lower sales and pricing versus PCP§Total Costs increased 5.0% ($69.7M) versus PCP due to:‒Cost inflation across labour, ingredients & cooking oil, utilities, and packaging costs‒Key drivers of elevated unit costs in 1H26 included: reducing excess inventory ($19.0M), incremental supply chain and logistics costs ($6.7M), lower farming performance ($3.8M), and Ingleburn transition inefficiencies ($1.8M). Adjusting for these costs, total cost growth was 2.7%‒Lower internal feed costs (-$24.9M), reflecting the sustained improvement in market pricing of key feed inputs over the past 12 months‒AASB 16 costs declined significantly versus the PCP largely due to the conversion of 68 growers to variable performance-based contracts over the last 18 months. This has resulted in an increase in operating costs (1H25: $29.5M), largely offset by lower AASB 16 depreciation and interest charges§Depreciation declined 23.6% due largely to a reduction in AASB 16 depreciation relating to grower contract conversions over prior periods§Net finance expense increased 2.9% due to a higher average debt balance, partially offset by lower AASB 16 interest due to grower contract conversions 1H26 Results Presentation | 20 February 2026 Revenue flat despite slight volume decline; margin pressure from cost growthFor personal use only
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BALANCE SHEET($M)Dec-25Jun-25VarianceInventories/Biologicals394.5418.8(24.3)Receivables291.4287.63.8Payables(474.4)(479.9)5.5Working Capital211.5226.5(15.0)Provisions(144.3)(142.2)(2.1)Working Capital & Provisions67.284.3(17.1)Property, Plant & Equipment734.2726.97.3Right-of-use Assets744.2809.0(64.8)Other Assets10.72.08.7Lease Liabilities(848.3)(914.2)65.9Capital Employed708.0708.00.0Net Debt(466.1)(430.4)(35.7)Net Tax balances13.4(0.6)14.0Net Assets255.2277.0(21.8)Leverage2.4x1.8x0.6xNote: Due to minor rounding differences, figures presented may not add up precisely to totals provided.13 §Inventories/Biologicals declined $24.3M, including:‒Processed poultry decreased $27.1M, including a $13.7M reduction in turkey inventory and a $12.7M reduction in processed chicken inventory, driven by targeted reduction initiatives‒Feed Inventory reduced $4.4M due to lower feed cost, and overall timing of usage‒Other inventories increased $10.9M due to higher ingredients and packaging inventory§Right-of-use Assets decreased $64.8M (-8.0%), while Lease Liabilities reduced by $65.9M (-7.2%) due to the conversion of a further 68 contract growers to variable performance-based contracts during FY25§Net Debt increased by $35.7M due to lower earnings and ongoing capital expenditure commitments§Tax balances reflect variation in tax instalment rates based on current profitability levels 1H26 Results Presentation | 20 February 2026 Inventory management initiatives deliver lower inventories; debt increased on capex and lower earningsFor personal use only
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CASH FLOW§Cash Flow from Operations was $134.3 million, a decrease of $32.8 million compared to the PCP . The reduction primarily reflects lower earnings, partially offset by lower working capital requirements§Cash conversion improved 18.6 percentage points to 113.1%, driven by improved working capital levels versus PCP§Capital expenditureof $47.6M due to capital spend comprising Stay-in-Business ($13.6M), Core growth ($18.9M) and High growth ($15.1M)§Dividends Paidrepresents final FY25 fully franked dividend of 8.0cps§Settlement of Share Plan: payments for purchase of shares for completed 2023-2025 LTIP program and FY24 deferred STIP awards§Decline in Interest paid reflects a higher debt balance, lower overall rates, and loan establishment fees paid in 1H25§AASB 16 Principal: reduction in lease principal payments due to the conversion of contract growers to performance-based variable contracts over the during prior periods§Tax paiddeclined $9.1M due to lower earnings141H26 Results Presentation | 20 February 2026 ($M) 1H261H25VarianceCash flows from operating activitiesReceipts from customers1,643.71,602.741.0Payments to suppliers & employees(1,490.6)(1,408.3)(82.3)153.1194.4(41.3)Interest received1.31.9(0.6)Income taxes paid(20.1)(29.2)9.1Net cash provided by operating activities134.3167.1(32.8)Cash flows from investing activitiesCapital expenditure(47.6)(38.4)(9.2)Property (acquisitions)/sales0.40.00.4Dividends received from investments0.70.60.1Acquisition of business0.0(31.3)31.3Net cash used in investing activities(46.5)(69.1)22.6Cash flows from financing activitiesSettlement of share plan(6.3)(2.0)(4.3)Proceeds from borrowings(0.0)110.0(110.0)Dividends paid (29.7)(29.7)(0.0)Lease payments - principal(44.8)(74.2)29.4Lease payments - interest(18.2)(19.0)0.8Interest paid(21.8)(24.3)2.5Net cash used in financing activities(120.8)(39.2)(81.6)Net decrease in cash and cash equivalents(33.0)58.8(91.8)Cash and equivalents at beginning of year106.4110.7(4.3)Effects of exchange rate changes on cash and equivalents(2.1)(0.3)(1.8)Cash and cash equivalents at end of year71.3169.2(97.9)Cash Conversion Ratio (%)113.194.518.6ppDue to minor rounding differences, figures presented may not add up precisely to totals provided. Working capital improvement underpins strong 1H26 cash conversionFor personal use only
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15 CAPITAL EXPENDITURE§Sustaining capexStay-in-Business capex spend of $13.6M, 43.2% of depreciation pre AASB 16 ($31.5M)§Investing capexCore & High growth projects of $34.0M, including an upgrade to the Lisarow fully cooked line ($2.4M), various Australian and New Zealand automation upgrades ($18.8M), $6.4M to support new pet food product capability, and the development of new growing sheds for Bostock Brothers (NZ) ($1.6M)1H26 CAPITAL EXPENDITURE: $47.6MSustaining $13.6M Investing $34.0M Broiler farm, Queensland1H26 Results Presentation | 20 February 2026 Disciplined capital allocation supports operational continuity and strategic growth initiativesFor personal use only
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NET DEBT AND LEVERAGELeverage above top of policy range due to lower EBITDA over the last 12 months Leverage xNet Debt $M Group Net Debt and Leverage(Underlying; pre AASB 16)Debt maturity profile ($M) Current committed and undrawn facilities of $199M as at 27 December 2025.§Leverage at the end of 1H26 was 2.4x, above the upper end of Inghams’ Capital Management policy range of 1.0-2.0 times Underlying EBITDA pre AASB 16, due to lower EBITDA over the last 12 months, and higher net debt from ongoing capital expenditure programs 298.0145.0263.8314.7240.2267.3262.5347.9430.4466.2 1.7x 0.7x1.3x1.8x1.2x2.0x1.4x1.5x1.8x2.4x 0. 0 0. 5 1. 0 1. 5 2. 0 2. 5 3. 0 0 10 0 20 0 30 0 40 0 50 0 60 0 FY17FY18FY19FY20FY21FY22FY23FY24FY251H26 16 300445Nov 2027Nov 2029 1H26 Results Presentation | 20 February 2026For personal use only
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$13.6 million CAPITAL MANAGEMENT OUTCOMESCASHFLOW FROM OPERATIONS 1. Sustaining capital includes maintenance, replacement, regulatory capital.2. Leverage = Net Debt/LTM Underlying EBITDA pre AASB 16, Net Debt comprises of borrowing facilities less cash and cash equivalents. CASHFLOW FOR INVESTING ACTIVITIESNET INTEREST, TAX AND LEASE PAYMENTS SUSTAINING CAPITAL1Annual spend of 75-90% of depreciation (pre AASB 16) on stay-in-business requirements and ESG projects MAINTAINING A STRONG BALANCE SHEETTarget leverage2 (underlying pre AASB 16) of 1.0x to 2.0xDIVIDENDS TO SHAREHOLDERSDividend payout ratio 60-80% of Underlying NPAT STRATEGIC INVESTMENTSAligned with strategy with expected returns in excess of hurdlesSURPLUS CASH TO SHAREHOLDERSCapital returns/special dividends/share buybacksMAXIMISE SHAREHOLDER VALUEOver time the objective is to deliver a Return on Invested Capital in excess of WACC Investing & dividends Cash realisation Service obligations INVESTING CAPITALCore Growth and High Growth projects 17 1H26outcomes $34.0 million 4.0cps (fully franked)Payout ratio of 70% 2.4 times 1H26 Results Presentation | 20 February 2026 Interim fully franked dividend reflects 70% payout ratio on lower 1H26 NPAT For personal use only
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FEED MARKET OBSERVATIONS •The pricing of wheat and soymeal continued to moderate over the course of 1H26, with further benefit expected to be reflected in Inghams’ feed costs during 2H26Soy•Global soybean markets are currently underpinned by ample supply from major producers, with high production in Brazil and elevated U.S. stocks keeping pricing under control •Brazil has emerged as the major world supplier in 2025/26, with forecast record production and competitive export pricing; demand from China remains the key driver of global soybean trade, with large Chinese crush and meal needs supporting underlying fundamentals, while European and other crushers benefit from increased South American supply Wheat•Global wheat markets characterised by healthy supply volumes and elevated inventories, with major exporters all reporting strong 2025/26 harvests and rising ending stocks, keeping prices under pressure and limited near-term upside•ABARES (Dec 2025) forecast an increase in Australian wheat production to ~35.6 Mt for 2025-26 (up vs prior year and well above 10-year average) driven by strong yields in WA and recovery in SA/VIC after the prior drought-affected season. USDA (WHS/Wheat Outlook, Jan 2026) also raised global wheat production forecasts, reflecting stronger yields and larger harvests in several regions•Russia and Ukraine continue to be pivotal to global wheat flows, with Russia maintaining large exportable volumes. Key price drivers continue to be weather and broader Black Sea region geopolitical conditions18 Observed average wheat and soy prices provided further benefit during 1H26 versus PCP 1.Quarterly spot price data is based on the average of daily market observations is shown for illustrative purposes only. Inghams actual consumption prices will differ due to the purchase of delivered grain/soymeal as well as level of forward cover of between 3-9 months. Internal feed cost mostly contains cereal grains, protein meals, vitamins and minerals 1Inghams’ feed cost includes transport and milling costs 2Grain imported by New Zealand operations is purchased on the international market3 LONG TERM WHEAT & SOY EXTERNAL MARKET PRICING1 ($A PER METRIC TONNE) 1H26 Results Presentation | 20 February 2026 $200 $300 $400 $500 $600 $700 $800 FY 16 Q4FY 17 Q1FY 17 Q2FY 17 Q3FY 17 Q4FY 18 Q1FY 18 Q2FY 18 Q3FY 18 Q4FY 19 Q1FY 19 Q2FY 19 Q3FY 19 Q4FY 20 Q1FY 20 Q2FY 20 Q3FY 20 Q4FY 21 Q1FY 21 Q2FY 21 Q3FY 21 Q4FY 22 Q1FY 22 Q2FY 22 Q3FY 22 Q4FY 23 Q1FY 23 Q2FY 23 Q3FY 23 Q4FY 24 Q1FY 24 Q2FY 24 Q3FY 24 Q4FY 25 Q1FY 25 Q2FY 25 Q3FY 25 Q4FY 26 Q1FY 26 Q2 Wh eat ($A)CME Soy ($A) For personal use only
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SEGMENT PERFORMANCEEd AlexanderChief Executive Officer & Managing Director For personal use only
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AUSTRALIA§Core Poultry volume declined 0.5% versus PCP. Decline in Retail channel growth largely offset by solid growth in QSR (+9.0%) and Wholesale (+4.5%)§External Feed volume declined 2.8% due to lower export sales§Revenue was flat versus PCP, driven by:–Modest growth in core poultry revenue, driven by new business wins over the last 12 months, and improved Wholesale channel fundamentals–By-products revenue declined 6.7% on lower pricing for poultry tallow –Feed revenue from external sales declined due to a reduction in volumes, and a decline in NSP due to lower key feed input costs§Total costs increased 6.4% ($75.3M) versus PCP:–Cost inflation across salaries & wages, ingredients & oil, utilities and packaging–Costs were impacted by inventory-related inefficiencies, elevated cost-to-serve during onboarding of new business and supply chain transition inefficiencies. Excluding these costs, AU total cost growth was 3.7%–SG&A costs increased 11.0%, in part due to additional costs associated with the further centralisation of Group functions, and the effect of one-off items in 1H25 and 1H26. Adjusting for one-off and Significant Items, SG&A declined 1.9% versus PCP–AASB 16 costs declined largely due to the conversion of further growers to variable performance-based contracts over the last 18 months, resulting in an increase in operating costs (1H25: $30.8M), largely offset by lower AASB 16 depreciation and interest charges–Cost growth benefited from lower internal feed costs, which declined $23.8M versus PCP 20 ($M) 1H261H25Variance% Core Poultry volume (kt)195.5196.4(0.9)(0.5)Total Poultry volume (kt)249.8250.6(0.8)(0.3)Feed volume (kt)97.6100.4(2.8)(2.8)Revenue1,354.51,354.6(0.1)(0.0)Core poultry NSP ($/kg)6.496.420.071.1Cost of sales(1,095.4)(1,034.4)(61.0)5.9Gross Profit259.2320.2(61.0)(19.1)EBITDA 107.2181.7(74.5)(41.0)EBITDA (% Rev)7.913.4(5.5)(41.0)EBIT 43.693.8(50.2)(53.5)Underlying (pre AASB 16)Underlying Gross Profit214.3242.2(27.9)(11.5)Underlying EBITDA58.0100.6(42.6)(42.3)Underlying EBITDA (% Rev)4.37.4(3.1)(3.1pp)EBITDA / kg (cents)1 29.751.2(21.5)(42.0)EBIT 32.176.7(44.6)(58.1)1.Based on Core Poultry volume 1H26 Results Presentation | 20 February 2026 Revenue flat with cost growth partially offset by lower feed pricing and cost-out initiatives For personal use only
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NEW ZEALAND 21 §Core Poultry volume declined 1.6% versus PCP due to lower Other Poultry Product sales due to the closure of several key export markets during the period–On a like-for-like basis, excluding OPP, NZ volumes increased 2.7% versus PCP§External Feed volumes declined 8.6% versus PCP due to the loss of some external customer business during the prior period§Revenue declined 0.4% (+1.4% in NZD terms) versus PCP due to:–Decline in core poultry volume growth more than offset by NSP growth of 4.4% in NZD terms–Lower feed revenue lower volumes, and lower NSP due to reduction in feed input costs§Total costsdeclined 2.5% ($5.6M) versus PCP due to: –Feed cost improvement of $1.1M due to lower international input prices–Increases in salaries & wages, utilities, freight, and packaging, partially offset by lower repairs & maintenance and consulting/contractor costs–SG&A costs declined 21.8%, reflecting the further centralisation of Group functions into Australia head office–Royalty payment increased $1.1M (eliminates on consolidation)§FX movement contributed to AUD EBITDA being $0.8M lower versus PCP ($M) 1H261H25Variance% Core Poultry volume (kt)37.237.8(0.6)(1.6)Total Poultry volume (kt)44.443.80.61.4Feed volume (kt)34.037.2(3.2)(8.6)Revenue255.8256.7(0.9)(0.4)Core poultry NSP (NZ$/kg)6.826.530.294.4Cost of sales(184.6)(188.6)4.0(2.1)Gross Profit71.268.13.14.6EBITDA 32.028.73.311.5EBITDA (% Rev)12.511.21.31.3ppEBIT 19.216.62.615.7Underlying (pre AASB 16)Underlying Gross Profit64.462.22.23.5Underlying EBITDA22.623.4(0.8)(3.4)Underlying EBITDA (% Rev)8.89.1(0.3)(30bp)EBITDA / kg (cents)1 60.861.7(0.9)(1.5)EBIT 16.917.6(0.7)(4.0)1.Based on Core Poultry volume 1H26 Results Presentation | 20 February 2026 Lower core volumes offset by NSP growth and cost initiativesFor personal use only
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GUIDANCE & OUTLOOKEd AlexanderChief Executive Officer & Managing Director Essington Distribution Centre, South Australia For personal use only
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FY26 GUIDANCE & OUTLOOK §Guidance revision driven by timing of operational improvements –The guidance update is driven primarily by timing of benefits from operational improvements, with recovery taking longer to flow through to financial results–Key areas include supply chain and logistics performance, farming productivity and Ingleburn transition, where improvements are expected to be more weighted to 4Q26–New Zealand flat first half performance also contributed to the revised outlook§Outlook: foundations strengthened and momentum building into FY27–Inventory levels reduced and production settings have normalised into Q3, supporting improved network efficiency –Actions are in place to restore unit costs through 2H26, including supply chain stabilisation, improved planning and targeted operational initiatives –With growth returning and operational foundations improving, Inghams remains well positioned for improved earnings momentum through 2H26 and into FY27 23 1.FY26 guidance takes into account several key factors, including current operating performance, full period effect of Woolworths Australia supply agreement, a sustained improvement in the price of key feed inputs and Wholesale channel average pricing somewhat above FY25 level. Higher costs drive lower FY26 guidance, with strong 2H uplift expected Revising guidance1 for FY26Underlying EBITDA (pre AASB 16) guidance revised to $180 - $200 million (from $215 - $230 million) 1H26 Results Presentation | 20 February 2026For personal use only
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APPENDIX Free range broiler farm, Waikato region, New ZealandFor personal use only
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APPENDIX: AASB 16 LEASE IMPACT Balance Sheet $M1H26AUNZ1H25Land & Buildings705.8588.6117.2749.9Growers23.618.84.8101.5Equipment14.84.710.112.3Right-of-use Assets744.2612.1132.1863.7Lease Liability(848.3)(704.8)(143.5)(966.6)Capital Employed(104.1)(92.7)(11.4)(102.9)Tax 32.630.22.435.2Net assets(71.5)(62.5)(9.0)(67.7)P&L Impact $M 1H26AUNZ1H25EBITDA63.153.59.692.6Depreciation(44.9)(37.7)(7.2)(70.3)EBIT 18.215.82.422.3Net finance expense(18.1)(14.7)(3.4)(19.1)Tax expense(0.1)(0.3)0.2(1.0)NPAT 0.00.8(0.8)2.2Ave. Term (years)1H26 1H25Land & Buildings10.9 11.0Growers1.6 2.4Equipment2.7 1.5 Balance Sheet:§Land and Buildings: Inghams has a large leased property portfolio. Average term remaining on the portfolio is 10.9 years§Contract Growers: classified as a right-of-use asset due to the fixed and capital component of the fee structure. The variable component of the payments are not captured by this Standard. Average remaining term of contract grower leases (19 leases) is 1.6 yearsProfit & Loss:§AASB 16 leases impact to EBITDA was $63.1M of rental expense “add backs” split between cost of sales ($51.7M), distribution ($8.2M) and sales & administration ($3.2M)§AASB 16 impact on EBITDA of $29.5M due to the conversion of 68 contract growers to variable performance-based contracts over the past 18 months, largely offset by lower AASB 16 depreciation and interest charges. No impact on EBITDA pre AASB 16Average Lease Term:§Growers’ average lease term declined due to the conversion of 68 contract growers to variable performance-based contracts over the past 18 months 261H26 Results Presentation | 20 February 2026For personal use only
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APPENDIX: AASB 16 PROFILERight-of-use Assets $M EBITDA AASB 16 $MDepreciation AASB 16 $M Lease Liability $M Interest AASB 16 $M 27 GrowerL&B/Other GrowerL&B/Other GrowerL&B/OtherGrowerL&B/Other GrowerL&B/Other 1H26 Results Presentation | 20 February 2026 972945928923888855 50148747644525959 FY20AFY21AFY22AFY23AFY24AFY25AFY26FFY27FFY28FFY29FFY30F 828859858830792757 60251646244624052 FY20AFY21AFY22AFY23AFY24AFY25AFY26FFY27FFY28FFY29FFY30F 839697999392 14614314915113874 FY20AFY21AFY22AFY23AFY24AFY25AFY26FFY27FFY28FFY29FFY30F 807577776970 12913413813711852 FY20AFY21AFY22AFY23AFY24AFY25AFY26FFY27FFY28FFY29FFY30F 343335363738 20181717185 FY20AFY21AFY22AFY23AFY24AFY25AFY26FFY27FFY28FFY29FFY30F For personal use only
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APPENDIX: PROFIT & LOSS RECONCILIATIONProfit & Loss $M 1H26Excluded from underlying1H26 UnderlyingAASB 16 Leases1H26 Underlying (pre AASB 16)1H25 Underlying (pre AASB 16)Core Poultry volume (kt)232.6 232.6 232.6234.2By-Products volume (kt)61.5 61.5 61.560.2Total Poultry volume (kt)294.1 294.1 294.1294.4External feed Volume (kt)131.6 131.6 131.6137.6Core Poultry Revenue1,495.6 1,495.6 1,495.61,485.6By-Products Revenue28.1 28.1 28.129.6Total Poultry Revenue1,523.7 1,523.7 1,523.71,515.2Feed Revenue86.6 86.6 86.696.1Revenue1,610.3 1,610.3 1,610.31,611.3Cost of sales(1,279.9)(1,279.9)(51.7)(1,331.6)(1,307.0)Gross profit330.4 330.4 278.7304.3Gross profit margin (%)20.5 20.5 17.318.9Distribution expense(104.2) (104.2)(8.2)(112.4)(104.4)Administration and selling(87.4)4.5(82.9)(3.2)(86.1)(76.7)Other income0.1 0.1 0.10.2Share of net profit of associate0.3 0.3 0.30.6EBITDA 139.24.5143.7(63.1)80.6124.0EBITDA margin (%)8.6 8.9 5.07.7Depreciation(76.4) (76.4)44.9(31.5)(29.7)EBIT 62.84.567.3(18.2)49.094.3Finance costs(38.8) (38.8)18.1(20.6)(18.6)FX gain/(loss)1.5 1.5 1.5-PBT 25.54.530.0(0.1)29.975.7Tax (7.4)(1.3)(8.7)0.1(8.6)(21.9)NPAT 18.13.221.30.021.353.8281H26 Results Presentation | 20 February 2026Note: Due to minor rounding differences, figures presented may not add up precisely to totals provided.For personal use only
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APPENDIX: SEGMENT EBITDA RECONCILIATION$M Group AustraliaNew Zealand1H261H25Var1H261H25Var1H261H25VarCore Poultry volume (kt)232.6234.2(1.6)195.5196.4(0.9)37.237.8(0.6)Total Poultry volume (kt)294.1294.4(0.3)249.8250.6(0.8)44.443.80.6Core Poultry Revenue1,495.61,485.610.01,269.11,261.37.8226.6224.32.3Revenue 1,610.31,611.3(1.0)1,354.51,354.6(0.1)255.8256.7(0.9)Cost of Sales(1,279.9)(1,223.0)(56.9)(1,095.3)(1,034.4)(60.9)(184.6)(188.6)4.0Gross Profit330.4388.3(57.9)259.2320.2(61.0)71.268.13.1Gross Profit margin (%)20.524.1(3.6pp)19.123.6(4.5pp)27.826.51.3ppGross Profit pre AASB 16278.7304.3(25.6)214.3242.2(27.9)64.462.22.2EBITDA 139.2210.4(71.2)107.2181.7(74.5)32.028.73.3EBIT 62.8110.4(47.6)43.693.8(50.2)19.216.62.6Excluded from Underlying:Costs related to business acquisitions, divestments and restructuring4.56.2(1.7)4.33.21.10.23.0(2.8)Underlying EBITDA143.7216.6(72.9)111.5184.9(73.4)32.231.70.5AASB 16 impact (63.1)(92.6)29.5(53.5)(84.3)30.8(9.6)(8.3)(1.3)Underlying EBITDA (pre AASB 16)80.6124.0(43.4)58.0100.6(42.6)22.623.4(0.8)Underlying EBITDA margin (%) (pre AASB 16)5.07.7(2.7pp)4.37.4(3.1pp)8.89.1(0.3pp)Underlying EBIT (pre AASB 16)49.094.3(45.3)32.176.7(44.6)16.917.6(0.7)291H26 Results Presentation | 20 February 2026For personal use only
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APPENDIX: NPAT RECONCILIATION 301H26 Results Presentation | 20 February 2026 $M 1H261H25Var% NPAT 18.151.5(33.4)(64.9)Significant items (net of tax):Business acquisition & integration costs -1.8(1.8)NMLegal settlement-2.0(2.0)NMRestructuring3.20.72.5NMExcluded from Underlying3.24.5(1.3)(28.9)Underlying NPAT21.356.0(34.7)(62.0)AASB 16 impact-(2.2)2.2NMUnderlying NPAT pre AASB 16 21.353.8(32.5)(60.4) For personal use only
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DEFINITIONSAverage Capital Invested: Net assets plus net debt plus tax balance plus net liabilities of AASB 16; average calculated over two financial year end periods.Cash Conversion ratio: Cash Flow from Operations divided by EBITDA excluding non-cash items.Core Poultry: refers to chicken and turkey products for human consumption, excluding by-products.EBITDA: Earnings before Interest, Tax, Depreciation and Amortisation.EBIT: Earnings before Interest and Tax.ESG: Environmental, Social and Governance.Gross Profit: Revenue less cost of sales.Leverage: Net Debt ÷ LTM Underlying EBITDA pre AASB 16LTM: Last twelve months.Net Debt: Debt less cash and cash equivalents.Net Operating Profit after Tax (NOPAT): Underlying NPAT pre AASB 16, plus interest (net of tax).PCP: Prior corresponding period. ROIC: Return on Invested Capital; Underlying, pre AASB 16 (full year measure only).Total Costs: Cost of Sales + Distribution + SG&ATotal Poultry: includes core chicken and turkey products and by-products.Underlying Gross Profit pre AASB 16: Underlying Gross Profit excluding AASB 16 leasing impacts.Underlying EBITDA: Underlying EBITDA excluding business transformation costs, any results of sale of businesses, business acquisition legal and integration costs, restructuring costs, impairment and trading results for business sold as a going concern, inclusive of AASB 16 Leases.Underlying EBITDA pre AASB 16: Underlying EBITDA excluding AASB 16 leasing impacts.Underlying NPAT: Net Profit After Tax excluding business transformation costs, any results of sale of businesses, business acquisition legal and integration costs, restructuring costs, impairment and trading results for business sold as a going concern, inclusive of AASB 16 Leases.Underlying NPAT pre AASB 16: Underlying NPAT excluding AASB 16 leasing impacts after being tax effected. NON-IFRS INFORMATION REFERRED TO IN THIS PRESENTATION AND ARE DEFINED BELOW 311H26 Results Presentation | 20 February 2026For personal use only