SPC Global (ASX: SPG) says it remains on track to deliver 25 per cent growth in normalised EBITDA for FY26, with its Q4 trading update showing the $100 million equity raise completed in the quarter has cut net leverage to below 2x, as restructuring begins at its Shepparton site.
The company said group net sales revenue (NSR) and normalised EBITDA for the quarter ended 30 June improved in line with expectations, keeping it on track against FY25 normalised EBITDA of $30.3 million. The figures remain subject to final audit clearance.
Restructuring of the Shepparton production site began in Q4, with consultation underway on proposed changes to the manufacturing operating model and leadership structure. Additional production is expected to transition to Shepparton in coming months, with selected beverage manufacturing lines relocating from the Mill Park site in Melbourne.
The closure of Mill Park, transition of Juice Lab Wellness Shots production to Shepparton, and co-packing arrangements for extended shelf-life juice in Griffith remain on track for Q1 FY27.
The project is expected to deliver EBITDA benefits of around $8 million in FY27, with payback of less than 12 months. Consolidation of the two factories was flagged when the company raised $20 million through unsecured notes earlier in FY26.
The group said it realised around $9 million in synergy benefits in FY26, including $2 million from SG&A efficiencies, $3.5 million from procurement, $1.5 million from supply chain productivity, and a further $1 million each from non-labour SG&A reductions and commercial cross-selling.
The equity raise reduced net leverage from 3.9-4.0x EBITDA to below 2x at FY26 year-end, with a further reduction to 1.0-1.2x expected in FY27.
Annual interest expense is forecast to fall from around $15 million in FY26 ($19 million including exit costs) to $5-6 million, up from the $4.5-5million guide in May. Cash conversion of normalised EBITDA to free cash flow (before working capital movements) improved from around negative 75 per cent in FY25 to an estimated negative 15-20 per cent in FY26, pre-raise.
Domestically, Beverages NSR rose 11.7 per cent in the quarter, tomatoes 3.5 per cent, and baked beans and spaghetti four per cent, with the proportion of higher-margin branded products up 5.2 percentage points year on year.
The Ardmona range became the exclusive Australian branded canned tomato offering in Woolworths, SPC ProVital fruit pouches begin ranging in major retailers this month, and Naked Life sodas entered Ampol petrol and convenience outlets, adding an estimated 400 distribution points.
Its International division, Nature One, added around $5.5 million in NSR (up 50.8 per cent year on year) through a Q4 promotional program across China, Indonesia and South Korea.
The Original Juice Co. Black Label juice range will enter Costco Japan from late August, while its Black Label Orange Juice 1.5L generated more than $1.2 million in sales through Emart Traders in South Korea in under 12 weeks, with around $10 million in revenue forecast over three years.
In Singapore, Juice Lab Wellness Shots launch in Cold Storage supermarkets this month and NTUC FairPrice during 2026, with multi-channel ranging expected to generate around $2 million in export revenue over three years.
SPC Global managing director, Robert Iervasi, said the Q4 performance demonstrated the company’s ability to “execute with discipline and convert strategy into tangible outcomes”.
“The recent ranging wins with Costco Japan, Emart Traders and NTUC FairPrice show that our premium Australian brands can secure shelf space with leading retailers and scale quickly in attractive markets,” Iervasi said.
“With the equity raise completed, we have transitioned from a materially leveraged balance sheet that constrained growth and cash flow to a position where we can fund growth, absorb volatility and generate higher free cash flow.”
SPC Global listed on the ASX in December 2024 following the merger of SPC, The Original Juice Company and Nature One Dairy. The group employs around 800 people across operations in Australia and Asia.
