SPC sells tomatoes to China, launches new beverage business

SPC Global released its first end of financial year report since the merger of The Original Juice Co, SPC, and Nature One Dairy and Natural Ingredients in mid-December 2024, unveiling a new beverage division and success in new markets. Its pro forma net revenue for FY25 was $326.2 million.

Snapshot

• Proforma net revenue: $376.2m;
• Normalised pro forma EBITDA: $30.3m; and
• Normalised pro forma NPAT: ($12.3m).

Group managing director, Robert Iervasi, said the company had made great progress.

“We have built a resilient and diversified business, delivered key financial metrics and progressed initiatives against our four strategic focus areas.

“We have implemented both growth and cost-savings initiatives, enhanced efficiencies on our production lines and consolidated procurement across some segments,” Iervasi said.

Nature One, SPC’s international business division, delivered 13.5 per cent of revenue and 44.8 per cent of normalised pro forma EBITDA. Juice Lab products are now in Singapore and New Zealand and exceeding expectations in the wellness shot category, the company said.

It has also received conditional approval to act as a third-party manufacturer for Fonterra across the region. And a distribution agreement has been signed for the SPC tomato portfolio to be sold in China.

Domestically, the company structured business into five core channels - Retail, Food Solutions & Industrial, International, On the Go, and Healthcare. Synergies between the units are expected to deliver a $6.2 million annualised benefit in FY26.

It also brought in John Harwood as group chief commercial officer at the end of 2024 as part of the leadership team. Harwood had been the head of transformation at CUB.

The onshore business delivered 82 per cent of normalised EBITDA in H2 FY25 and for the full year normalised pro forma EBITDA, it contributed $16.7 million.

Highlights

• Recorded double digit growth year-on-year for Ardmona Tomatoes and launched a new range of 100% Australian tomatoes pasta sauces;
• Launched Juice Lab in New Zealand;
• SPC and Original Beverage Co. products now available in store and online in Singapore; and
• Integrated business planning has facilitated transition to a demand-led business.

“Our integration and synergy program is tracking ahead of schedule, validating the rationale and strategic intent behind our four business divisions coming together under the umbrella of SPC Global,” Iervasi said.

New beverage division

Iervasi also announced the company was creating a new beverage division - The Original Beverage Co. - to encompass the group’s expansion into premium, better-for-you beverages beyond juice. Its portfolio will include functional juices, fibres, infused fruits, and fruit waters, under The Original Juice Co. brand.

Beverage companies Posca Hydrate, Naked Life, and Eclectic Group are partnering with the new division to significantly expand their distribution.

Iervasi said the partnerships will provide “exciting growth”.

“We’ll also be looking for additional brands to join our portfolio so that we can offer retailers a broad range of options to meet consumers’ demands for beverages that have genuine functional benefits,” he said.