Highlights

  • Cobram Estate Olives (ASX:CBO) is scheduled to release FY26 results on 28 August 2026.
  • The company produced 11.3 million litres of olive oil from the 2026 Australian harvest, impacted by the alternate-bearing cycle.
  • California Olive Ranch integration continues, with synergies tracking towards an initial US$12 million annualised target.
  • Cobram reduced borrowings to A$190.46 million at 31 December 2025 while maintaining available cash and facilities of A$115.38 million.

Cobram Estate Olives (ASX:CBO) is preparing to report FY26 results following a year focused on managing agricultural production cycles, integrating California Olive Ranch and reducing Balance Sheet leverage. The company’s upcoming results will provide further visibility on harvest performance, US operations and financial outcomes.

What happened

Cobram’s most recent operational update was released on 7 July 2026, covering the Australian olive harvest and Business developments.

The 2026 harvest produced 11.3 million litres of olive oil, including 10.6 million litres from Cobram’s own groves and 0.7 million litres from third-party contract processing. An additional 0.8 million litres was secured from other millers, resulting in total available oil of 12.1 million litres.

The harvest was lower compared with 2025, when the company processed 80,000 tonnes of olives and produced 14.2 million litres of olive oil. Crop weight declined 7.1% year on year, while oil content was 13.9% below the long-term average.

Compared with the previous off-year in 2024, production increased 11.9% from 10.1 million litres. Cobram expects the 2027 harvest, which falls in an on-year cycle, to be substantially higher.

The company also provided an update on California Olive Ranch (COR), the US$173.5 million Acquisition completed as part of its expansion strategy. Synergies from COR are tracking towards an initial annualised target of US$12 million, with further implementation expected through FY2027 and a longer-term target of US$20 million annually by FY2030.

Two matters remain unresolved, including a potential US$7.125 million earn-out payment threshold and a purchase price adjustment claim of up to US$31.9 million, which remains under review and disputed by vendors.

The numbers investors need to know

The half-year FY2026 report provides the latest audited financial base ahead of the full-year result. For the six months ended 31 December 2025, sales Revenue was A$116.13 million, compared with A$124.77 million in the prior corresponding period.

Underlying Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) declined to A$9.48 million from A$14.45 million, before A$2.42 million of Transaction Costs related to the California Olive Ranch acquisition.

Statutory net loss after tax was A$11.93 million compared with a loss of A$4.46 million in the prior corresponding half.

Cobram reduced total borrowings to A$190.46 million at 31 December 2025 from A$267.85 million at 30 June 2025. Net Debt ratio improved to 21.7% from 32.7%, supported by Equity raising activities during 2025.

Available cash and undrawn facilities stood at A$115.38 million. Capital Expenditure of A$67.85 million was primarily directed towards the US expansion programme, including A$28.86 million on land and A$21.12 million on grove development.

The Australian segment contributed A$86.67 million in revenue and A$8.78 million in underlying EBITDA during the half-year period.

Business outlook and key considerations

Cobram’s immediate focus remains on FY26 results, integration of California Olive Ranch and execution of its olive production strategy.

The FY26 result is expected to provide updates on earnings performance, net debt, realised US synergies, the purchase price adjustment claim and expectations for the 2027 harvest cycle.

Key operating factors include agricultural conditions, US branded olive oil performance, pricing trends and consumer demand.

Bull case

Cobram has expanded its geographic footprint through California Olive Ranch while maintaining its established Australian olive oil operations. The company has reported progress towards US$12 million of annualised COR synergies, with a longer-term target of US$20 million annually by FY2030.

The 2026 harvest, while lower than the previous year, exceeded the prior off-year production level. The company has also reduced borrowings and maintained available Liquidity to support ongoing operations and integration activities.

Bear case and risks

Agricultural production remains exposed to seasonal variability, with the 2026 harvest impacted by lower oil content and the alternate-bearing cycle. The company reported lower first-half revenue and EBITDA, alongside a wider statutory loss.

The California Olive Ranch integration introduces execution risks, while the unresolved US$31.9 million purchase price adjustment claim remains a potential financial consideration.

Additional risks include consumer Demand conditions, US retail market performance, currency movements, agricultural yields and managing debt obligations.

What comes next

Cobram Estate Olives is scheduled to release FY26 results on 28 August 2026, followed by an investor webinar hosted by joint chief executives Leandro Ravetti and Sam Beaton.

Key areas to monitor include FY26 EBITDA, statutory earnings, net debt position, Dividend decisions, progress on California Olive Ranch synergies, the purchase price adjustment claim and expectations for the 2027 harvest.

Conclusion

Cobram Estate Olives (ASX:CBO) enters its FY26 results period with several important factors influencing its outlook, including a lower Australian harvest, California Olive Ranch integration and balance sheet changes.

The company has progressed US expansion initiatives while reducing borrowings and maintaining liquidity. The FY26 results will provide further detail on earnings performance, synergy delivery and the impact of agricultural conditions on the business.