Australian Agricultural Projects (ASX:AAP) FY2026 Results: Profit Falls as Orchard Operations Shift

Sonal Goyal

31 August 2026 06:05 PM AEST

Australian Agricultural Projects (ASX:AAP) FY2026 Results: Profit Falls as Orchard Operations Shift

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Key Highlights

Australian Agricultural Projects reported FY2026 profit after tax of $782,919, down from $1.96 million in FY2025.
The 2026 olive harvest reached 639,900 litres, below 752,600 litres in 2025 but above the previous off-year result of 551,500 litres in 2024.
Operating cash flow increased to $1.59 million from $929,850, while Loan Debt was reduced by $539,000.
AAP shares were quoted at $0.054 on 31 August 2026, down $0.016 on the day, according to the market data supplied for this article.

Australian Agricultural Projects Limited (ASX:AAP) closed the latest Trading session at $0.054 on 31 August 2026, representing a decline of $0.016 or 22.86% for the day. The move came as the company reported FY2026 financial and operating results showing a lower statutory profit but improved operating cash generation and continued debt reduction. Independent market data also records AAP trading around the mid-five-cent range on 31 August, although intraday pricing can vary between market-data providers. {"fallbackMarkdown":"(Investing.com Australia)","reference":{"matched_text":"","prefix":null,"start_idx":1663,"end_idx":1693,"safe_urls":["https://au.investing.com/equities/australian-agri-projects","https://au.investing.com/equities/australian-agri-projects?utm_source=chatgpt.com","https://www.intelligentinvestor.com.au/shares/asx-aap/australian-agricultural-projects-limited/share-price","https://www.intelligentinvestor.com.au/shares/asx-aap/australian-agricultural-projects-limited/share-price?utm_source=chatgpt.com"],"refs":[],"alt":"(Investing.com Australia)","prompt_text":null,"type":"grouped_webpages","status":"done","fallback_items":null,"style":null,"items":[{"title":"Australian Agri Projects Share Price Today | ASX AAP Stock - Investing.com AU","url":"https://au.investing.com/equities/australian-agri-projects?utm_source=chatgpt.com","attribution":"Investing.com Australia","pub_date":1788134400,"snippet":"","attribution_segments":null,"supporting_websites":[{"title":"Australian Agricultural Projects Limited (ASX:AAP) - Share Price - Intelligent Investor","url":"https://www.intelligentinvestor.com.au/shares/asx-aap/australian-agricultural-projects-limited/share-price?utm_source=chatgpt.com","pub_date":null,"snippet":"","attribution":"Intelligent Investor"}],"refs":[{"turn_index":0,"ref_type":"search","ref_index":6},{"turn_index":0,"ref_type":"news","ref_index":2}],"hue":null,"attributions":null}],"error":null},"showLoginRequiredCard":false}

FY2026 Profit Declines Despite Operating Progress

AAP recorded profit after income tax of $782,919 for the year ended 30 June 2026, compared with $1.96 million in FY2025. The decline reflects the changing composition of the company's agricultural operations and the production characteristics of its olive orchard.

A key development during the year was the company's decision to farm the 285-hectare portion previously leased to the Victorian Olive Oil Project for its own benefit. The company reported a net benefit of $2.36 million from farming this portion of the orchard. At the same time, Lease and management fee Revenue declined to $1.13 million because the company no longer receives the previous lease income associated with that area.

Funding costs moved in the opposite direction, falling to $402,750 from $446,271. The reduction followed scheduled principal repayments during the year. Depreciation, however, increased to $879,001 from $784,858, including $564,771 related to olive trees.

Harvest Volume Reflects the Orchard's Biennial Cycle

AAP's 2026 harvest produced 639,900 litres of olive oil, down from 752,600 litres in 2025. The company describes 2026 as an "off year" within the orchard's natural biennial production cycle. For comparison, the previous off-year in 2024 produced 551,500 litres, making the latest result higher than that comparable period.

The company attributed the lower oil accumulation during 2026 partly to cooler-than-average conditions following flowering and fruit set. Management estimated that oil production could have been 10% to 15% higher if oil accumulation had been closer to historical averages.

The 2026 harvest included 428,100 litres from the company-farmed 285-hectare orchard, 137,400 litres from Victorian Olive Oil Project II and 74,400 litres from the Peppercorn project.

Cash Flow and Debt Position Improve

Operating cash flow provided a more favourable measure of the year's cash performance. Net Operating Cash Flow reached $1.59 million, compared with $929,850 in FY2025. The increase was largely associated with cash receipts from the previous year's harvest, highlighting the timing differences created by the agricultural production cycle.

AAP used operating cash to acquire residual irrigation interests associated with the former Victorian Olive Oil Project for $783,750 and to overhaul harvesting equipment. The company also reduced loan debt by $539,000 and stated that reducing core company debt remains an ongoing objective.

Orchard Investment and Production Capacity

Operational improvements were a significant feature of FY2026. The company completed an overhaul of control systems on its harvesting equipment and installed a new olive washing machine and conveyors. These changes were intended to remove processing bottlenecks and improve the reliability of harvesting operations.

The company is also continuing to refine management systems across approximately 200 hectares of replanted orchard. These areas have a substantially higher planting density of 1,000 trees per hectare compared with 333 trees per hectare in the original plantings. A further 54 hectares of replanted orchard have yet to reach mature production.

Weather remains an important operating variable. Minor flooding in March temporarily restricted access across the orchard, while some trees remained underwater for several weeks. The season was otherwise characterised by cooler-than-average conditions and a period of dryness before the flooding.

Outlook for the Next Harvest

AAP expects the forthcoming harvest to be an "on year", with an initial production budget of approximately 800,000 to 870,000 litres. The estimate will be refined following flowering and fruit-set conditions later in the year, while actual production will remain dependent on weather and growing conditions.

The company also continues to sell its olive oil under an extended Supply agreement with Cobram Estate. The agreement's pricing mechanism is linked to the farm-gate price ultimately derived from packaged olive oil prices in the Australian market. The agreement has been extended for at least five additional harvests.

At the same time, AAP faces higher orchard operating costs. Fertiliser and diesel prices have experienced volatility, water costs have increased following dry conditions and lower water allocations, and contract labour costs remain elevated.

Conclusion

Australian Agricultural Projects enters the next financial year with a mixed FY2026 financial profile. Profit after tax fell materially to $782,919, while harvest volume also declined from the previous year's production. Against those negatives, operating cash flow increased, funding costs fell and loan debt was reduced. The transition to farming the former Victorian Olive Oil Project also changes the company's revenue mix and increases its direct exposure to agricultural production. With an expected higher-production year ahead and further replanted acreage approaching maturity, the company's financial performance will remain closely linked to harvest volumes, oil yields, market pricing, operating costs and seasonal conditions.

FAQs

Q: What was Australian Agricultural Projects' FY2026 profit?

A:AAP reported profit after income tax of $782,919 for the year ended 30 June 2026, compared with $1.96 million in FY2025.

Q: How much olive oil did AAP produce in 2026?

A:The 2026 harvest produced 639,900 litres, compared with 752,600 litres in 2025 and 551,500 litres in the previous off-year of 2024.

Q: What was AAP's operating cash flow in FY2026?

A:Net cash flow from operations was $1.59 million, up from $929,850 in FY2025.

Q: Did AAP reduce its debt during FY2026?

A:Yes. The company reduced loan debt by $539,000 during the financial year and said it intends to continue reducing core company debt.

Q: What is AAP expecting from the next olive harvest?

A:Management expects the next season to be an on year and has initially budgeted for approximately 800,000 to 870,000 litres, subject to flowering, fruit-set, weather and growing conditions.

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