Cobram Estate Olives (CBO) H2 2024 earnings summary

Executive summary

• Achieved record FY2024 results with olive oil sales revenue of AUD 220.9 million, up 134.6% year-over-year, and net profit after tax of AUD 18.5 million, driven by strong growth in both Australia and the USA.

• EBITDA rose 163.4% to AUD 66.7 million, supported by improved product mix and higher average prices.

• Packaged goods sales accounted for 87.5% of olive oil sales, with significant growth in both Australian and US markets.

• Maintained market leadership in Australia, with Cobram and Red Island holding a combined 37.9% value share.

• 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 operating cash flow of AUD 64.1 million, up 18.4% from the previous year.

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

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

Outlook and guidance

• 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.

• U.S. packaged goods price increase of 15% effective September 2024.

• Board anticipates a fully franked dividend of AUD 0.033 per share in December 2024.

• Australian CapEx to shift to maintenance mode; U.S. growth to drive future capital projects.