Inghams Group Profit Squeezed by Labour Costs and Cooking Oil Inflation

Inghams Group Ltd (ASX:ING), Australia's largest integrated poultry producer, reported a sharp fall in full-year profit despite higher revenue and processed volumes. The company cited rising labour, cooking oil, and other operating costs as the main factors behind the decline.

Rising labour costs were a significant contributor to the squeeze on margins, with wages increasing across the poultry network due to persistent wage pressures in a tight employment market. Additionally, cooking oil and other processing inputs became more expensive over the course of the year, further adding to the cost burden.

A bright spot was a decline in feed expenses, as softer grain prices and more efficient procurement practices reduced what has historically been among the largest cost lines for any poultry producer. However, this relief was not enough to offset the combined weight of higher labour, cooking oil, and other processing costs.