Cobram Estate FY26 Normalised EBITDA Down 47.3%

Cobram Estate Olives Limited (ASX:CBO) released its FY2026 results presentation for the 12 months to 30 June 2026, reporting group normalised EBITDA of $61.4 million against $116.6 million in FY25, a decrease of 47.3 per cent. EBITDA is a non-IFRS measure that the company says has not been subject to audit or review, and has been normalised for transaction costs associated with the acquisition of California Olive Ranch, Inc., one-off costs associated with integrating that business and the profit impact of land and building revaluations. Normalised earnings before tax were $13.0 million, down 83.0 per cent. Reported earnings before tax were a loss of $37.7 million after a $41.8 million warrant expense relating to the COR acquisition, which the company says is a non-cash item reflecting fair value at acquisition and mark-to-market at 30 June 2026, $4.8 million of transaction costs and $4.1 million of other costs; the net loss after tax was $4.2 million after a $33.5 million tax item, against a net profit of $49.6 million in FY25. Sales revenue was $268.9 million against $241.7 million, while total revenue, which includes the net change in the fair value of agricultural produce, fell to $315.5 million from $335.5 million. All currency figures are in Australian dollars unless otherwise stated.

Australian olive oil operations reported EBITDA of $52.1 million against $110.0 million, a decrease the company attributed to a smaller Australian off-year crop, higher grove operating costs, primarily water, and a modest reduction in average selling price in the face of aggressive promotional activity by imported brands. USA olive oil operations reported EBITDA of $9.4 million against $6.6 million, an improvement the company said was driven by roughly three months' contribution from COR, partly offset by higher costs. Global packaged goods sales rose 16.8 per cent to $253.2 million. Australian packaged goods sales rose 1.6 per cent to $165.7 million, while USA packaged goods sales rose 63.1 per cent to $87.5 million from $53.7 million, a figure the company says includes three months of California Olive Ranch sales of $35.1 million and Lucini sales of $6.7 million. Cash generated from operations, before interest and tax, was $47.5 million against $83.0 million, or $3.4 million after interest and tax against $58.1 million. The group invested $101.9 million in capital growth projects and paid $159.7 million for COR net of cash acquired, funded by $179.8 million of proceeds from shares issued, including $177.8 million from the equity raising, and net proceeds from borrowings of $73.4 million. Australian production was 11.1 million litres in the FY26 off-year against 14.2 million litres in FY25. The company declared a final FY26 dividend of 4.5 cents per share, 100 per cent franked, with an ex-dividend date of 15 October 2026, a record date of 16 October 2026 and payment on 6 November 2026, and said FY27 EBITDA and operating cash flow are expected to be materially higher than FY26, driven by the Australian on-year crop and full-year earnings and synergies from the COR acquisition, subject to normal agricultural risks and market conditions.