Cobram Estate Olives (CBO) H2 2024 earnings summary

Executive summary

• Achieved record sales growth, with olive oil sales revenue reaching AUD 220.9 million, up 134.6% year-over-year, and net profit after tax of AUD 18.5 million, up 140.1% from FY2023.

• EBITDA rose 163.4% to AUD 66.7 million, driven by strong sales in both Australia and the USA, improved product mix, and higher average prices.

• Record operating cash flow of AUD 64.1 million, up 18.4% year-over-year.

• Maintained market leadership in Australia, with a combined value share of just under 38%.

• Continued investment in growth assets and sustainability initiatives in both Australia and the USA, positioning for future expansion.

Financial highlights

• Group olive oil sales revenue reached AUD 220.9 million, up 134.6% year-over-year; global packaged goods sales AUD 193.4 million, up 138.4%.

• EBITDA of AUD 66.7 million, up 163.4%; net profit after tax AUD 18.5 million, up 140.1% year-over-year.

• Record cash flow from operations of AUD 64.1 million, up 18.4% year-over-year.

• Australian packaged goods sales AUD 142.9 million (+128.1%), USA packaged goods sales AUD 50.5 million (+178.9%).

• Net assets increased from AUD 287 million to AUD 322 million.

Outlook and guidance

• Positive sales outlook with robust demand in both Australia and the USA; sufficient oil supply secured for FY2025.

• FY2025 is an "on-year" for Australian groves; EBITDA expected to be materially higher, subject to agricultural risks.

• Operating cash flow projected to remain strong, fully funding planned U.S. expansion.

• 15% price increase in the USA effective September 2024.

• Dividend rate maintained at AUD 0.033, anticipated to be fully franked.