Cobram Estate Olives (CBO) H1 2026 earnings summary

Executive summary

• Underlying EBITDA for the half was AUD 9.5 million, slightly above 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 transaction expenses.

• 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.

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

• Pending acquisition of California Olive Ranch for US$173.5 million, expected to double U.S. footprint and be EPS accretive from FY 2027, subject to regulatory approval.

• Total group sales declined 6.9% to $116.13 million, mainly due to timing and pricing of non-EVOO bulk sales, with most of these sales expected in the second half.

Financial highlights

• Australian olive oil business EBITDA was AUD 8.8 million, slightly down year-over-year, with higher net selling prices offset by increased production costs.

• USA EBITDA was $0.7 million, down from $2.6 million, due to higher marketing and overhead costs.

• 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 sales.

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

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

Outlook and guidance

• Second half expected to be materially stronger, especially in the USA, with higher oil supply and anticipated growth in packaged goods sales.

• Australian crop is in an off year but expected to be only moderately lower than last year; FY 2026 EBITDA will be lower than FY 2025.

• Packaged goods sales in Australia expected to be broadly in line with last year, with growth in the Cobram Estate brand.

• COR acquisition completion expected post antitrust approval, likely after February 2026.

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