Cobram Estate Olives (ASX:CBO): FY26 Sales Growth, US Expansion and Olive Oil Operations

Aditi Sarkar

22 October 2026 10:12 PM AEDT

Cobram Estate Olives (ASX:CBO): FY26 Sales Growth, US Expansion and Olive Oil Operations

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Highlights

Cobram Estate Olives (ASX:CBO) reported FY26 sales revenue of AUD 268.9 million.
Group olive oil sales reached AUD 265.5 million, up 11.8% year on year.
Normalised FY26 EBITDA declined to AUD 61.4 million from AUD 116.6 million.
The company declared a 4.5-cent fully franked final dividend, payable in November 2026.

Cobram Estate Olives Limited (ASX:CBO) grows, processes, bottles and markets extra virgin olive oil through integrated operations in Australia and California. The group reported higher olive oil sales for FY26 while earnings declined as Australia's smaller harvest and increased growing costs affected results. On 22 October 2026, Cobram Estate Olives (ASX:CBO) closed at AUD 2.61. The company has also expanded its US brand portfolio through its 2026 acquisition of California Olive Ranch.

Company Business

Cobram Estate Olives operates olive groves, mills, bottling facilities, storage assets and associated research operations. Its principal Australian farming assets are at Boundary Bend, Boort and Wemen in Victoria. The group's Australian groves cover approximately 7,000 hectares and contain more than 2.6 million olive trees. Milling capacity at its two Australian mills totals 144 tonnes of olives per hour.

In California, operations include company-owned and leased groves and processing facilities at Woodland and Artois. The business markets olive oil under the Cobram Estate, Red Island, California Olive Ranch and Lucini brands. Cobram Estate Olives (ASX:CBO) sells products through retail and other channels, giving its sales mix exposure to consumer purchasing, retailer promotional activity and harvest conditions in both countries.

Recent Development

During 2026, the company acquired California Olive Ranch, extending its US branded product range and distribution. The FY26 accounts include California Olive Ranch sales from 25 March to 30 June 2026 rather than a full financial year. That timing matters when interpreting year-on-year US revenue growth: acquired sales contributed to the increase alongside the existing business.

Cobram Estate Olives (ASX:CBO) reported Australian packaged-goods sales of AUD 165.7 million in FY26, up 1.6% from AUD 163.1 million in FY25. Cobram Estate branded Australian sales increased 2.1% to AUD 102.9 million. Australian bulk sales declined to AUD 4.8 million from AUD 9.6 million, with the company identifying softer selling prices and the timing of some sales.

Financial Performance and Sector Context

Group sales revenue increased from AUD 241.7 million in FY25 to AUD 268.9 million in FY26. Group olive oil sales, which exclude other revenue, rose 11.8% to AUD 265.5 million. US olive oil sales increased to AUD 95.0 million from AUD 64.6 million. Within the US business, packaged-goods sales reached AUD 87.5 million, compared with AUD 53.7 million a year earlier. The reported increase includes sales attributable to the California Olive Ranch acquisition.

Earnings moved in the opposite direction. Normalised group EBITDA was AUD 61.4 million in FY26, compared with AUD 116.6 million in FY25. Australian olive oil operations contributed AUD 52.1 million in normalised EBITDA, down from AUD 110.0 million. The company identified the smaller Australian crop, higher grove costs, particularly water, and lower average selling prices among the factors affecting this segment. US normalised EBITDA increased to AUD 9.4 million from AUD 6.6 million.

The FY26 annual financial statements recorded a loss before tax of AUD 37.7 million, compared with a profit before tax of AUD 76.1 million in FY25. Reported earnings were affected by acquisition-related items, warrant expenses and an impairment associated with the Harter Avenue facility in California. These items mean reported EBITDA and the company's normalised EBITDA are not interchangeable. Cobram Estate Olives (ASX:CBO) also reported AUD 47.5 million of operating cash flow before tax and interest, versus AUD 83.0 million in FY25.

Risks to Consider

Agricultural yield remains an important variable for the group. Olive production is affected by weather, water availability and the biological cycle of trees, while harvesting, processing and storage create ongoing operating costs. Selling prices can respond to international crop supply and competition from imported oils. The US acquisition adds integration, supply-chain and execution considerations, alongside the capital required for grove development. Changes in exchange rates can also affect Australian-dollar reporting of US operations.

What to Watch Next

Cobram Estate Olives (ASX:CBO) has scheduled its annual general meeting for 30 October 2026. The declared final dividend of 4.5 Australian cents per share is fully franked and scheduled for payment on 6 November 2026 to eligible shareholders recorded on 16 October. Subsequent company updates may provide information on the US integration, grove development, production volumes, inventory management and the balance between branded and bulk sales.

Key Insights

Cobram Estate Olives finished FY26 with higher group sales revenue and expanded US operations, but substantially lower normalised EBITDA and a statutory pre-tax loss. Performance was mixed across Australia and the US, reflecting harvest conditions, operating costs and the effects of a major acquisition. For Cobram Estate Olives (ASX:CBO), future disclosures on crop yields, water costs, acquired business performance and cash generation will help clarify how these factors develop.

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