Key Highlights

  • Cobram Estate Olives paid a fully franked 4.5 cent Dividend on 6 November 2026.
  • The payment was unchanged from the prior year despite a statutory loss.
  • The company reported a statutory net loss after tax of $4.2 million for FY26.
  • A reinvestment plan was offered at a 2.5% discount.

Cobram Estate Olives Limited (ASX:CBO) paid a fully Franked Dividend of 4.5 cents per share on 6 November 2026, keeping its annual payment unchanged from the previous year despite reporting a statutory net loss after tax of $4.2 million for FY26. The olive oil producer declared the dividend on 28 August 2026 alongside its annual report. For readers working through the best dividend stocks ASX lists for income, the Cobram case highlights how agricultural businesses with uneven crop cycles set dividends, and why the gap between statutory and normalised Earnings matters when judging whether a payment is covered.

The Dividend Details

Cobram's Appendix 3A.1 notice set the FY26 dividend at 4.5 cents per ordinary share, relating to the twelve months ended 30 June 2026. The dividend was 100% franked at the 30% corporate tax rate. The shares went ex-dividend on 15 October 2026, the Record Date was 16 October 2026 and payment was made on 6 November 2026.

A Dividend reinvestment plan was available for the payment. The election deadline was 5pm on Monday 19 October 2026, and new shares were priced using the Volume weighted average price over five trading days from 20 October to 26 October 2026, less a 2.5% discount. The plan was open to shareholders with registered addresses in Australia or New Zealand, and to certain other holders with Board approval. Shareholders who made no election were paid in cash.

Cobram pays a single annual dividend rather than interim and final payments, and the 4.5 cent amount matched the prior year.

Because the dividend was fully franked at 30%, each 4.5 cents of cash carried a franking Credit of about 1.93 cents, giving a grossed-up value of roughly 6.43 cents per share. Australian resident shareholders include the grossed-up amount in Taxable Income and can then use the credit to offset tax payable, with the benefit depending on their own tax position.

Statutory Loss Versus Normalised Earnings

The statutory result was affected by one-off items linked to the Acquisition of California Olive Ranch, Inc. Reported earnings before tax were a loss of $37.7 million, mainly because of $50.7 million in warrant, Impairment and other transaction and acquisition costs related to the deal. A $33.5 million tax benefit partly offset this, leaving a net loss after tax of $4.2 million.

On a normalised basis, which excludes those items, Cobram reported EBITDA of $61.4 million and earnings before tax of $13.0 million. The company also reports a two-year rolling average of normalised EBITDA, including temporary water costs, which was $90.9 million.

For dividend analysis, this distinction is important. A company that pays a dividend while reporting a statutory loss is not paying from that year's reported profit. Normalised earnings give a closer view of underlying performance, while Cash Flow shows what was available to fund the payment.

Cash Flow and Balance Sheet Coverage

Operating cash flow before interest and tax was $47.5 million in FY26. After interest and tax, Operating Cash Flow was $3.4 million. Net Debt rose to $437.3 million at 30 June 2026, reflecting the acquisition, and net debt to real tangible assets was 34.7%.

Those figures show that FY26 operating cash flow after interest and tax was modest relative to the dividend commitment, with the Business carrying higher debt after its move into the United States. Holding the dividend steady in that context indicates the Board was looking through the off-year crop and the acquisition costs to expected earnings in FY27.

Why the Crop Cycle Shapes the Dividend

Olive groves tend to alternate between larger on-year and smaller off-year crops. FY26 reflected an off-year in Australia. Cobram's Australian harvest finished in early July 2026, producing 11.1 million litres of olive oil from about 74,300 tonnes of olives. Australian EBITDA fell to $52.1 million, a decline the company attributed to the smaller off-year crop, higher temporary water costs and lower prices.

Group olive oil sales still rose 11.9% to $265.5 million, helped by the United States. California Olive Ranch was acquired on 26 March 2026 for total consideration of $245.1 million, so FY26 included about three months of its trading. United States sales rose 47.0% to $95.0 million and the segment delivered EBITDA of $9.4 million. Cobram has set a synergy target of about US$12 million by the end of FY27, rising to more than US$20 million a year by FY30.

The use of a two-year rolling average reflects the company's view that earnings should be read across a full crop cycle rather than year by year, and a steady annual dividend fits that approach.

Outlook and Leadership

The Board expects group EBITDA and operating cash flow in FY27 to be materially higher than in FY26, driven by a larger Australian on-year crop and a full year of California Olive Ranch. The company has said this is subject to agricultural and market conditions, and that trading in July and August 2026 was in line with expectations. The company also noted an ongoing dispute over a US$31.9 million purchase price adjustment claim relating to the acquisition, which the sellers have disputed in full.

Cobram is led by joint Chief Executive Officers Leandro Ravetti and Sam Beaton, with co-founder Rob McGavin as Non-Executive Chair. The company held its Annual General Meeting on 30 October 2026 in Lara, Victoria.

Bottom Line

Cobram Estate Olives paid a 4.5 cent fully franked dividend on 6 November 2026, after an ex-dividend date of 15 October and a record date of 16 October, with a reinvestment plan offered at a 2.5% discount. The amount was unchanged from the prior year even though the company reported a $4.2 million statutory loss, driven by acquisition-related costs.

Normalised EBITDA of $61.4 million, operating cash flow after interest and tax of $3.4 million and net debt of $437.3 million provide the context for that decision. With the Board expecting materially higher FY27 earnings from an on-year crop and a full year of United States trading, the next annual result will show how well the dividend is covered across the crop cycle.