Cobram Estate Olives (CBO) H1 2025 earnings summary

Executive summary

• Sales grew 13.5% to AUD 123.5 million (or $123.5m), driven by strong demand and marketing in Australia and the USA, with Cobram Estate branded sales up 83% in the US and 23–25.7% in Australia.

• EBITDA increased 75–75.4% to AUD 14.5 million, with net loss after tax improving to AUD 4.5 million from AUD 7.2 million.

• 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

• Australian operations EBITDA rose to AUD 11.9 million; U.S. operations EBITDA increased to AUD 2.6 million.

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

• Dividend of AUD 12.1 million paid, net of reinvestment plan.

• Adjusted asset value of AUD 890 million; net borrowings of AUD 240 million; adjusted net debt ratio 27.9%.

• Net tangible assets per security increased to $0.74 from $0.62 year-over-year.

Outlook and guidance

• Continued strength in sales, profitability, and operating cash flow expected in the second half, with a materially higher Australian crop and EBITDA anticipated.

• CapEx to 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.