Key Highlights

  • AAP shares were quoted at A$0.057 on 29 October 2026, unchanged for the session. The article looks at FY26 profit, operating cash generation, olive production, orchard management and debt reduction.
  • The 2026 olive harvest yielded 639,900 litres, versus 752,600 litres in 2025.
  • Net operating cash inflow was A$1.59 million, compared with A$929,850 in FY25.

Australian Agricultural Projects Limited (ASX:AAP) operates within the consumer and agricultural products market and reported results and operating developments across its latest disclosure period.. AAP was priced at A$0.057 on 29 October 2026, with shares unchanged that day. FY26 profit after tax was A$782,919 compared with A$1.96 million in FY25. The article looks at FY26 profit, operating cash generation, olive production, orchard management and debt reduction.

Profit and operating cash flow

Australian Agricultural Projects reported a A$782,919 profit after income tax for the year ended 30 June 2026, compared with A$1.96 million a year earlier. Net cash generated by operations increased to A$1.59 million from A$929,850. The group used cash to purchase irrigation interests, overhaul harvesting equipment and reduce debt by A$539,000. Funding costs fell to A$402,750 from A$446,271, which the company attributed to scheduled principal repayments.

Harvest results and production cycle

The 2026 harvest was completed in the first week of July and produced 639,900 litres of olive oil compared with 752,600 litres in 2025. Management described 2026 as an off year in the orchard’s biennial production cycle. For comparison with another off year, the company noted 551,500 litres produced in 2024. The latest harvest comprised 428,100 litres from company-farmed areas, 137,400 litres from VOOP II and 74,400 litres from Peppercorn.

Change in farming arrangements

Australian Agricultural Projects began farming for its own benefit a portion of orchard previously leased to the first Victorian Olive Oil Project. The company reported a net benefit of A$2.36 million from this arrangement in FY26. Revenue from lease and management fees was A$1.13 million, reflecting changes to the projects managed. The company also reclassified orchard assets as property, plant and equipment following the end of the lease, changing how they are presented in the balance sheet.

Equipment and orchard development

The company had replanted roughly 200 hectares following removal of the Barnea variety and reported that 54 hectares of replanted trees had yet to reach maturity. It overhauled harvester controls and installed new equipment in the processing shed. New washing and conveyor equipment was intended to address handling bottlenecks. The 2026 season also included flooding in March, although management said the resulting water availability reduced subsequent irrigation requirements.

Supply agreements and balance sheet priorities

Most of the season’s production was classified as extra virgin olive oil and was intended for supply to Cobram Estate under existing arrangements. A smaller quantity was graded as virgin olive oil and covered by the extended supply agreement. The company said it would continue work on orchard management and review irrigation systems, while pursuing debt reduction. An independent valuation of orchard assets was planned for 2027 under its stated periodic valuation policy.

Key Insights

Australian Agricultural Projects recorded FY26 profit after tax of A$782,919 and operating cash inflow of A$1.59 million. The 639,900-litre olive harvest coincided with a change in orchard farming arrangements, continued equipment improvements and further loan repayments.