Highlights:

CBO completes 2025 olive harvest with 15.3 million litres of oil produced

Cobram Estate Olives expects FY25 EBITDA of AUD 115 million, up from AUD 66.7 million in FY24

CBO acquires Leda Ag and announces U.S. executive relocation to support international expansion

Cobram Estate Olives Limited (ASX:CBO), an Australian olive farming and olive oil production company, has completed its 2025 domestic olive harvest, producing 15.3 million litres of olive oil. The company processed more than 80,000 tonnes of olives, with 13.2 million litres coming from its own groves and 1.0 million litres from contract processing for third parties. Additionally, CBO secured 1.1 million litres from other Australian producers through supply agreements and spot purchases.

This harvest result represents a 10.2% increase over the company’s last ‘on-year’ harvest in 2023, which produced 12.9 million litres, despite a temporary reduction in output due to the removal of 100,000 mature trees after the 2023 season. These were replaced with newer, higher-yielding varieties, which are expected to increase long-term productivity.

The company noted that its recent grove development in Boort, covering 410 hectares and nearly 150,000 trees, has not yet begun production. As a result, future harvest volumes are expected to rise as these plantings mature. Olive oil from the 2025 harvest has been reported as high quality and is expected to meet packaged goods sales targets through to the 2026 harvest.

Following a typical alternating yield cycle in olive farming, 2026 is projected to be a lower-yielding ‘off-year.’ However, CBO expects only a moderate decrease in production due to improved tree health and an increasingly mature grove profile. The company reiterated that it anticipates a two-year rolling average production from its Australian groves of more than 20 million litres once all trees reach maturity, though this remains subject to usual agricultural risks.

Sales performance in both Australia and the United States continued to grow in the second half of FY25, led by demand for domestically produced extra virgin olive oil. By the end of June 2025, more than 2.7 million litres of olive oil from the current harvest had already been sold. Sales of the company’s premium Cobram Estate brand were a key driver in both markets.

Based on unaudited internal estimates, Cobram Estate Olives expects underlying EBITDA for FY25 to be approximately AUD 115 million, up from AUD 66.7 million in FY24. This is a notable increase compared to FY23, which was the last ‘on-year’ and recorded EBITDA of AUD 40.8 million. The audited financial results for FY25 will be released on 22 August 2025.

To support ongoing growth in the U.S. market, CBO has announced that Joint CEO Leandro Ravetti will relocate to California in September 2025. The move is intended to enhance leadership presence and coordination between the company’s Australian and U.S. operations, which are increasingly similar in size and importance. Ravetti will continue overseeing operations and technical matters, while fellow Joint CEO Sam Beaton remains focused on commercial and financial functions.

In addition, the company has acquired Leda Ag, a Mildura-based agricultural machinery firm and long-time equipment partner. The acquisition includes all machinery, spare parts, intellectual property, and staff. CBO stated that the transaction supports its in-house development of harvesting equipment, which has been in progress for five years, and aims to reduce long-term servicing and machinery costs across both Australian and U.S. operations.

The acquisition involved an upfront payment of approximately AUD 3.0 million, with a further AUD 2.0 million to be paid over four years, some of which depends on meeting performance milestones.

The company’s board has also proposed a fully franked dividend of 4.5 cents per share, up from 3.3 cents in 2024, with full details to be provided at the Annual General Meeting on 31 October 2025.

As of 7 July 2025, Cobram Estate Olives shares were trading at AUD 2.39, up 11.16% from the previous close.