Highlights

  • Cobram Estate Olives (ASX:CBO) reported FY2026 group olive oil sales of A$265.5 million, up 11.9%.
  • Normalised EBITDA was A$61.4 million, while the statutory result was a net loss after tax of A$4.2 million.
  • USA olive oil sales rose 47.0% to A$95.0 million following the California Olive Ranch acquisition.
  • A final dividend of 4.5 cents per share, fully franked, is payable on 6 November 2026.

Cobram Estate Olives Limited is an Australian extra virgin olive oil producer that manages planting, harvesting, cold pressing and bottling across its own groves, and has added a United States platform through the acquisition of California Olive Ranch. The company released its FY2026 annual report in late August 2026, reporting higher sales, lower earnings and an increased level of debt following the acquisition, with its annual general meeting due next week.

Company Business

Cobram Estate Olives (ASX:CBO) operates in Australia and the USA. In Australia, its groves cover about 7,000 hectares, around 75% of which are mature, and sales are made under the Cobram Estate and Red Island brands alongside bulk oil. In the USA, grove area is about 3,000 hectares, and sales include the California Olive Ranch and Lucini brands.

The California Olive Ranch acquisition completed in March 2026 for total consideration of A$245.1 million, made up of A$161.8 million in cash, A$64.9 million in vendor notes and A$19.8 million in warrants.

Recent Development

In late August 2026 the company released its annual report and declared a final dividend. Management said trading in July and August 2026 was in line with expectations. An earn-out linked to California Olive Ranch was not payable because its EBITDA for the six months to 30 June 2026 fell below the threshold of US$7.125 million. Separately, Cobram Estate Olives claims a purchase price adjustment of US$31.9 million, which the sellers dispute in full. The matter is in a legal process with uncertain timing and outcome.

On operations, a new bottling line at the Artois facility in the USA is due for commissioning between October and December 2026, with operations from January 2027, lifting capacity from 6,500 to 16,000 bottles per hour.

Financial Performance and Sector Context

Group olive oil sales were A$265.5 million, up 11.9%, and packaged goods sales of A$253.2 million represented 95.4% of olive oil sales. Total revenue was A$268.9 million, up 11.3%. Australian olive oil sales were A$170.6 million, down 1.3%, while USA olive oil sales rose 47.0% to A$95.0 million. California Olive Ranch contributed A$35.1 million and Lucini A$6.7 million over about three months of trading.

Normalised EBITDA was A$61.4 million, compared with A$116.6 million in the prior corresponding period, with Australia contributing A$52.1 million and the USA A$9.4 million. Reported earnings before tax were a loss of A$37.7 million after A$50.7 million of warrant, impairment and other California Olive Ranch costs. A tax benefit of A$33.5 million left a net loss after tax of A$4.2 million, compared with a profit of A$49.6 million.

Operating cash flow after interest and tax was A$3.4 million. Net debt was A$437.3 million, with borrowings of A$449.5 million and cash of A$12.2 million, giving net debt to real tangible assets of 34.7%. Net tangible asset backing was A$0.88 per share.

Management pointed to normalising olive oil markets and cost pressures. Australian production was 11.1 million litres, and temporary water prices averaged A$349 per megalitre against a long-term average of A$203. For FY2027, management expects Group EBITDA and operating cash flow to be materially higher, depending on a larger Australian harvest and a full year of California Olive Ranch.

Risks to Consider

Agricultural variability is central, as crop size depends on seasonal conditions, and the company noted that El Niño conditions could mean drier weather and higher water costs in FY2027. Other risks include integration of California Olive Ranch, the disputed purchase price adjustment, cost inflation, tariffs, foreign exchange exposure and logistics disruption. Competition in both markets is expected to remain high.

What to Watch Next

The annual general meeting is scheduled for 11:00am on Friday 30 October 2026 at Lara, Victoria. The final dividend of 4.5 cents per share is payable on 6 November 2026. Operational milestones include commissioning of the Artois bottling line between October and December 2026, the Australian harvest outcome and progress on the purchase price adjustment process. For ASX:CBO, the next set of financial results will show whether the expected FY2027 earnings and cash flow improvement is being delivered.

Key Insights

Cobram Estate Olives (ASX:CBO) entered FY2027 with a larger US presence, higher sales and lower reported earnings than the prior corresponding period. Monitoring points for ASX:CBO include harvest size, water costs, integration progress, net debt and the outcome of the purchase price dispute.