Cobram Estate Olives (CBO) H1 2025 earnings summary

Executive summary

• Sales increased by 13.5% year-over-year to AUD 123.5 million for the six months to 31 December 2024, driven by strong demand and effective marketing in both Australia and the U.S.A.

• EBITDA rose 75% to AUD 14.5 million, while the after-tax loss improved to AUD 4.5 million from AUD 7.2 million last year.

• Packaged goods sales were the main growth driver, with Australia up 20.9% and the U.S.A. up 18.5%; Cobram Estate® branded sales soared 103.4% in the USA and 25.7% in Australia.

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

• FY2025 is an 'on' year for Australian groves, with the crop expected to be materially larger than FY2024.

Financial highlights

• Group olive oil sales revenue: $123.5m, up 13.5% year-over-year; net loss after tax: $4.5m, improved from $7.2m loss in 1HFY24.

• EBITDA: $14.5m, up 75.4% year-over-year.

• Cash flow from operations: $43.6m, up 36.2% year-over-year.

• CapEx for the half was AUD 52.1 million, mainly for U.S. land acquisitions.

• Net assets at AUD 316 million; adjusted asset value at AUD 890 million.

Outlook and guidance

• Expect continued strength in sales, profitability, and operating cash flow in the second half, driven by robust demand in Australia and the USA.

• CapEx will continue but at a lower level, with future focus on U.S. supply expansion; Australian capex to shift to maintenance after Boort mill expansion.

• Anticipate materially higher EBITDA and profitability due to an on-year in Australia and a larger crop.

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