Cobram Estate Olives reported a weaker 1HFY26 result on earnings and profit, but held packaged goods sales broadly flat, grew its flagship Cobram Estate brand, and significantly strengthened its balance sheet ahead of the proposed California Olive Ranch (COR) acquisition.
For the six months to 31 December 2025, CBO posted revenue from ordinary activities of $116.1 million, down 6.9 per cent on the prior corresponding period (pcp), while net loss after tax widened to $11.9 million from a $4.5 million loss in 1HFY25.
On an operating basis, CBO reported group EBITDA of $9.5 million, down from $14.5 million in 1HFY25, but ahead of its December 2025 guidance range of $4.5-$7.5 million. The decline reflected higher oil costs (including higher fair value cost of oil from own groves and higher third-party oil costs), plus higher USA marketing, packaging and distribution costs.
Snapshot
- Revenue: $116.1m, down 6.92%;
- EBITDA: $9.5m vs $14.5m pcp;
- Net loss after tax: $11.9m loss vs $4.5m loss pcp;
- Operating cash flow (before interest and tax): $9.9m vs $43.6m pcp; and
- Cash generated from operations after interest and tax: $(14.1)m vs $36.8m pcp.
Sales mix: branded resilience, bulk softness
The standout in the half was strength in the premium Cobram Estate brand. Group packaged goods sales were effectively flat at $109.7 million (down 0.6 per cent), while Cobram Estate branded sales increased by $4.9 million.
In Australia, Cobram Estate branded sales rose to $55.4 million (+9.3 per cent), and in the USA to $19.2 million (+0.8 per cent).
By contrast, total group sales were dragged lower by weaker non-EVOO bulk sales, which management attributed to timing and price. CBO said non-EVOO bulk sales fell by about $9.2 million in the first half and are expected to be materially higher in 2H FY26.
CBO emphasised that the 1H FY26 result does not include any fair value gain on the FY26 Australian olive crop, because the Australian harvest occurs later in the financial year and there was limited biological transformation at 31 December. By contrast, the USA crop fair value movement is recognised in the half-year. This is an important point when comparing reported half-year profitability to full-year outcomes.
Outlook
CBO says Australian packaged goods sales remain on track to be broadly in line with FY25’s record result, while second-half USA sales should benefit from increased Californian oil supply. It also expects FY26 EBITDA to be lower than FY25, with the Australian crop an “off year”, though projected to be only moderately below FY25 and well above the prior off-year outcome, subject to seasonal/agricultural risks.
