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 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 37.9% value share for Cobram Estate® and Red Island®.

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

Financial highlights

• Australian packaged goods sales increased 28.1% to AUD 142.9 million; USA packaged goods sales surged 78.9% to AUD 50.5 million.

• EBITDA in Australia reached AUD 60.1 million; U.S. EBITDA grew to AUD 5.8 million from AUD 2.9 million.

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

• Adjusted asset value (including trees and irrigation infrastructure) rose to AUD 845 million from AUD 718 million.

• Net debt ratio increased to 31.5% from 29.8% as of June 30, 2024.

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.

• Australian CapEx to shift toward maintenance, with U.S. growth projects prioritized.

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

• Board anticipates a fully franked dividend of 3.3 cents per share in December 2024.