Cobram Estate Olives (CBO) H1 2025 earnings summary

Executive summary

• Sales rose 13.5% to AUD 123.5 million for the half-year ended 31 December 2024, driven by strong demand and marketing in both Australia and the USA.

• EBITDA increased 75% to AUD 14.5 million, with net loss after tax improving to AUD 4.5 million from AUD 7.2 million.

• Packaged goods sales grew 20.9% in Australia and 18.5% in the USA; branded sales in the USA up over 100%.

• Operating cash flow before interest and tax rose 36% to AUD 43.6 million.

• FY2025 is an 'on' year for Australian groves, with a materially larger crop expected.

Financial highlights

• Group olive oil sales revenue reached AUD 123.5 million, up 13.5% year-over-year.

• EBITDA was AUD 14.5 million, up 75% year-over-year.

• Net loss after tax improved to AUD 4.5 million from AUD 7.2 million.

• Operating cash flow increased to AUD 43.6 million, up 36% year-over-year.

• CapEx totaled AUD 52.1 million, mainly for U.S. land acquisition and development.

Outlook and guidance

• Sales, profitability, and operating cash flow are expected to remain strong in the second half of FY2025.

• Australian crop is an on-year, with materially higher yields and expected EBITDA/profitability.

• CapEx will focus on U.S. supply growth beyond June 2025 as Australian business shifts to maintenance CapEx.

• Material fair value gain from the Australian olive crop expected to be recognized in FY2025 full year results.

• Demand for Extra Virgin Olive Oil projected to remain strong in both Australia and the USA.