Inghams Group Ltd. shares dropped as much as 11%, the most since June 22, after the Australian poultry producer warned that higher feed, diesel and packaging costs driven by the war in the Middle East would weigh on earnings in the next fiscal year.

The company said underlying earnings would be between A$155 million ($110 million) and A$180 million ($128 million) for the fiscal year beginning July 1, according to an exchange filing Friday.

The outlook reflects pressure from elevated input costs, with feed and fuel expenses rising due to geopolitical instability. Inghams did not provide a comparable prior forecast in the filing.