Highlights

  • SPC said net Leverage fell below 2 times normalised EBITDA by June 2026 after a AUD 100 mn Equity raise.
  • FY25 pro forma Revenue was AUD 376.2 mn and normalised pro forma EBITDA reached AUD 30.3 mn.
  • Management expects FY26 normalised EBITDA growth of about 25% and lower interest expense in FY27.
  • Restructuring and Manufacturing changes are targeted to deliver about AUD 8 mn of FY27 EBITDA benefit.

SPC Global Holdings (ASX:SPG) has spent FY26 repairing the part of its story that had become hardest to ignore: leverage. A heavily discounted AUD 100 mn equity raise was painful for shareholders, but it materially reduced Debt and interest costs just as the merged food and beverage group began reporting better underlying Earnings . The next phase is more demanding. Management now needs to show that the balance-sheet reset, factory changes and Merger synergies can convert a collection of familiar brands into a consistently profitable group.

Recent Developments

In its July FY26 fourth-quarter update, SPC said net leverage had fallen below 2 times normalised EBITDA from around 3.9–4.0 times. The reset followed the fully underwritten AUD 100 mn equity raise completed during 2026. Management is targeting leverage of 1.0–1.2 times in FY27 and expects annual interest expense to fall from roughly AUD 15 mn toward AUD 5–6 mn.

The latest trading commentary pointed to FY26 normalised EBITDA growth of about 25% on FY25. Beverages net sales revenue rose 11.7%, tomatoes increased 3.5%, and baked beans and spaghetti grew around 4%, while Nature One continued expanding in Asian export channels.

Why It Matters

The balance-sheet change matters because interest costs previously absorbed a meaningful share of operating profit. Lower debt should allow more earnings to reach the Bottom Line if the operating businesses continue improving.

The merger created a broader portfolio across canned foods, juice and nutritional dairy, but integration remains central. Management has identified procurement, supply-chain and SG&A savings, while factory changes including the Mill Park closure and production shifts are expected to deliver about AUD 8 mn of FY27 EBITDA benefit.

Cash Flow remains important because it shows how much of reported performance is converting into funding capacity.

The Assets described above remain central to the company’s operating and valuation case.

Investment requirements remain tied to the growth and execution milestones outlined above.

Company Overview

SPC Global combines the SPC canned-food Business , The Original Juice Company and Nature One Dairy. Brands include SPC, Goulburn Valley and Ardmona, while Nature One sells infant formula and nutritional dairy products with a growing export footprint in Asia. The current group was formed through the three-way transaction completed in early 2025.

Financial Snapshot

FY25 pro forma net revenue was AUD 376.2 mn and normalised pro forma EBITDA was AUD 30.3 mn, slightly ahead of company guidance. The normalised pro forma net loss was AUD 12.3 mn, while merger and restructuring costs weighed on the statutory result.

Nature One Dairy provides the clearest growth option outside the mature domestic food brands. In the June-quarter commentary, the division generated about AUD 5.5 mn in net sales revenue, up roughly 51% year on year, with new ranging and launches across South Korea, Singapore and Japan. The dollar contribution is still modest beside the broader group, but faster export growth could improve the revenue mix if it scales. That opportunity sits alongside the more immediate task of simplifying manufacturing and proving that merger synergies can be realised in cash, not only in normalised EBITDA adjustments.

Borrowings were AUD 131.1 mn at the FY25 result, but refinancing and the 2026 equity raise materially changed the leverage profile. The raise was priced at 10 cents, creating significant dilution, but management’s pro forma calculations showed leverage falling close to 1.1 times after proceeds were applied.

What to Watch

The audited FY26 result should confirm whether normalised EBITDA grew about 25% as indicated and whether lower leverage is translating into reduced finance costs. Cash conversion will be especially important for a working-capital-heavy food manufacturer.

FY27 execution of the roughly AUD 8 mn restructuring benefit, export growth at Nature One and the targeted AUD 5–6 mn interest expense will define the next stage. The group also needs to show the three merged businesses can operate as one platform rather than remain separate brands under a common Balance Sheet .

Risks

The AUD 100 mn raise caused heavy dilution and highlights the cost of the previous leverage position. SPC still operates in low-margin food categories exposed to supermarket buying power, private-label competition and input costs. Integration and restructuring may take longer than expected, while export growth remains small relative to the domestic base.

What Could Turn SPC’s Debt Reset Into A Profit Recovery

SPC has addressed the immediate balance-sheet problem, but the equity reset only creates the opportunity for a turnaround; it does not complete one. Lower interest costs, synergy delivery and better cash conversion now need to translate into statutory profit. If FY27 savings arrive as planned, the enlarged portfolio could look materially healthier than it did after the merger.