Cobram Estate Olives (CBO) H1 2026 earnings summary

Executive summary

• Underlying EBITDA for the half was AUD 9.5 million, ahead of guidance but down from AUD 14.5 million year-over-year, with net loss after tax widening to AUD 11.9 million due to higher costs and AUD 2.4 million in transaction costs for the California Olive Ranch (COR) acquisition.

• Group packaged goods sales were nearly flat at just under AUD 110 million, with flagship brand sales up 7% and growth in both Australia and the USA despite aggressive competitor discounting.

• Completed a significant capital raise of AUD 177.8 million, strengthening the balance sheet and reducing the net debt ratio to 21.7%.

• Announced binding agreement to acquire California Olive Ranch for US$173.5 million, expected to close by March 2026, expanding the U.S. footprint and positioning as a leading premium EVOO supplier.

Financial highlights

• Group olive oil sales revenue reached $113.7 million, down 6.92% year-over-year, with packaged goods sales at $109.7 million, nearly flat.

• Cash flow from operations was AUD 9.9 million, down from AUD 43.6 million, mainly due to higher water and third-party oil purchases and timing of bulk oil sales.

• Available cash and undrawn debt facilities totaled $115.4 million at period end, with total liquidity of $267.6 million after new debt facilities.

• Dividend paid increased to AUD 0.045 per share, fully franked, totaling AUD 17.5 million net of DRP.

• Net tangible assets per security rose to $1.05 from $0.74 year-over-year.

Outlook and guidance

• Second half expected to be materially stronger, especially in the USA, due to improved oil supply and timing of bulk sales.

• Australian packaged goods sales anticipated to match last year’s record, with Cobram Estate brand growth continuing.

• FY26 EBITDA expected to be lower than FY25 due to an off year in the Australian crop, though the crop is expected to be only moderately lower.

• Sustaining CapEx in Australia to be AUD 10–15 million per annum going forward.

• Material fair value gain from the FY26 Australian crop expected in the full-year results.