SPC Global Reaffirms 25% EBITDA Growth Target as Q3 Momentum Builds
SPC Global confirms 25% EBITDA growth on track as Q3 momentum builds
SPC Global Holdings has reaffirmed its FY26 guidance with one quarter remaining, reporting continued momentum across domestic beverages and international market expansion in its SPC Global Q3 FY26 Update (ASX: SPG). The food and beverage manufacturer confirmed normalised EBITDA remains on track for a 25% year-on-year increase against the FY25 baseline of $30.3 million, whilst net leverage is expected to fall below 4 times by 30 June 2026.
The update, covering the three months ended 31 March 2026, demonstrates execution across dual growth drivers. Domestic branded beverages now contribute more than 45% of domestic EBITDA, whilst international expansion has delivered material improvements through new market entry and higher-margin product launches. Supply chain optimisation delivered double-digit cost reductions, with the company expecting more than $16 million in synergy benefits across FY26 and FY27 excluding Mill Park transition savings.
Robert Iervasi, Managing Director
“Our Q3 performance reinforces the visibility we have over our full year outlook. The deliberate actions we have taken to reshape revenue, improve margins and strengthen the foundations of the business are delivering structural, long-term benefits.”
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What is normalised EBITDA and why does it matter?
Normalised EBITDA refers to earnings before interest, taxes, depreciation, and amortisation, adjusted to remove one-off items such as restructuring costs or unusual expenses. Companies use this metric to show underlying business performance by stripping out temporary factors that can obscure operational trends.
For SPC Global, normalised EBITDA provides visibility into the company’s core profitability as it executes its transformation strategy. Integration costs associated with the December 2024 listing and facility consolidation activities represent temporary headwinds. By reporting normalised EBITDA, management can demonstrate the underlying earnings power of the business independent of these transition expenses. The 25% growth target against a verifiable FY25 baseline allows investors to assess operational progress rather than accounting noise.
Domestic beverages emerge as the earnings engine
Branded beverages have become SPC Global’s dominant domestic profit driver, now generating more than 45% of domestic EBITDA. Sales of branded beverages increased 11% year-on-year in Q3 FY26, driven by the standout performance of Juice Lab Wellness Shots.
Juice Lab Wellness Shots delivered retail sales value growth of approximately 40% compared to Q3 FY25, translating to an 11% increase in market share during the period. Following successful trials in petrol and convenience outlets across Australia and New Zealand, the company will commence rollout through this On-The-Go (OTG) channel in April 2026 across 200 outlets initially.
The strategic shift toward higher-margin branded products accelerated during the quarter. Branded product mix improved from 77% in Q2 FY26 to 81% in Q3 FY26, with further improvements expected in Q4. This mix shift represents a structural change in earnings quality as the company transitions away from lower-margin private label and commodity-based revenues.
Key domestic growth metrics for Q3 FY26:
- Branded beverage sales up 11% year-on-year
- Juice Lab Wellness Shots retail sales value up approximately 40% versus Q3 FY25
- Juice Lab Wellness Shots market share increased 11%
- Branded product mix improved from 77% to 81%
- 5,000 incremental distribution points secured
- OTG rollout commencing April 2026 across 200 outlets
The company expanded its OTG presence through new pack formats including bag-in-box for food services and catering. Ranging was secured across large-scale institutional catering venues and on-premise customers, with revenue from these new distribution points expected to commence in Q4 FY26 and accelerate in FY27.
New product launches scheduled for Q4 FY26 include Provital functional benefits pouches and the Goulburn Valley premium glass range, both aimed at driving further margin improvement through premium positioning. The company has established a clear portfolio brand architecture which is being progressively deployed to support this higher-value product strategy.
International expansion opens new revenue streams
SPC Global’s international operations transitioned toward higher-margin, higher-quality revenue during Q3 FY26, with tangible progress across multiple Asian markets. The company successfully delivered the first three shipments of Original Juice Co. “Black Label” 1.5L orange juice to South Korea in March 2026, marking the company’s entry into the Korean market.
Sales volumes to Korea are expected to double by June 2026. The total forecast export sales value of the company’s beverages is expected to exceed $10 million across Korea and Japan over the next three years, with these premium products projected to deliver strong margin returns.
In the dairy segment, Nature One is progressing toward the launch of its branded, specialised hypoallergenic infant and children’s formula range in China in Q4 FY26. The initial four-product portfolio is anticipated to generate strong margins, with total export sales for these new dairy segments forecast to reach approximately $10 million over the next three years.
Nature One has also completed its first export order of infant formula for special medical purposes for Beingmate Co. Ltd, a major listed Chinese infant formula and baby food company with a market capitalisation of approximately $1.3 billion. This achievement provides validation of SPC Global’s capability to supply major Asian food companies and demonstrates credibility in a highly regulated category.
| Market | Product | Status | 3-Year Sales Forecast |
|---|---|---|---|
| Korea | Original Juice Co. 1.5L OJ | First shipments March 2026 | >$10 million (with Japan) |
| Japan | Beverages | Planned | >$10 million (with Korea) |
| China | Nature One hypoallergenic formula | Q4 FY26 launch | ~$10 million |
| China | Infant formula (Beingmate) | First order completed | Ongoing |
Major sales events held in Hong Kong in January and March 2026 delivered results in line with expectations communicated at the H1 result, with a further sales event scheduled for June 2026. The company continues to progress manufacturing and planning activities in support of the Fonterra contract, with shipments of the SPC portfolio expected to continue through Q4 FY26.
Oat milk for children enters production
As part of its International Dairy Strategy, SPC Global has successfully completed trials for new oat milk products designed for children. Production is scheduled to commence in the coming months, marking entry into the plant-based category for young consumers. This demonstrates the company’s innovation pipeline and responsiveness to emerging consumer segments in plant-based nutrition.
Supply chain overhaul delivers double-digit cost reductions
Productivity initiatives undertaken during Q3 FY26 delivered measurable improvements in cost structure. The company achieved a 10.5% reduction in cost of goods sold (COGS) relative to Q3 FY25 and Q2 FY26, alongside an 11.6% improvement in distribution costs over the same period. Performance improvements were driven by enhanced operational efficiencies and the reduction of fixed costs at the Shepparton site.
The planned closure of the Mill Park facility and transition of Juice Lab Wellness Shots production to Shepparton, alongside co-packing arrangements for extended shelf-life juice in Griffith, remains on track for completion in Q1 FY27. The transition is supported by a fully-funded capital solution costing $3 million. Upon completion, the facility rationalisation is expected to deliver EBITDA growth exceeding $8 million in FY27, with a payback period of less than 12 months.
The company remains on track to deliver its FY26 and FY27 synergy programme. Expected synergy benefits for FY26 include:
- Selling, general and administrative (SG&A) efficiencies: $2.0 million
- Procurement initiatives: $3.5 million
- Supply chain productivity improvements: $1.5 million
- Non-labour SG&A reductions: $1.0 million
- Commercial cross-selling activities: $1.0 million
The annualised outlook for FY27 is expected to be materially improved, supported by an expanded pipeline of integration initiatives. Total synergy benefits are expected to exceed $16 million across FY26 and FY27, excluding the Mill Park transition benefits.
Mill Park closure milestones achieved
Two major milestones in the Mill Park closure project were achieved during Q3, with the finalisation of the main infrastructure and the installation of a cooling room. The completion of these milestones ensures the closure remains on schedule, de-risking the FY27 savings target and providing visibility into the step-change in profitability.
Geopolitical backdrop creates potential demand uplift
The company is monitoring the Middle East conflict and any potential impacts across the short and medium term. Based on current assessment, SPC Global does not believe the conflict will have a material impact on the company’s financial results for FY26.
As a leading domestic food manufacturer with resilient local production infrastructure supporting Australia’s food security, the company is positioned to respond to increased consumer and customer demand that may arise during the conflict. Potential impacts include reduced availability of imported competitor products, increased household stockpiling, or more conservative consumer spending behaviour shifting toward pantry staples.
Weeks four and five of the conflict demonstrated potential for increased demand, with sales of tomatoes, baked beans and packaged fruit increasing between 12% and 20% across major retailers. Strategic production planning has resulted in the company securing additional materials and volume to ensure sufficient supply to meet incremental demand across the next 12 to 18 months.
The company’s product portfolio comprises predominantly non-perishable food and beverage staples that support everyday household nourishment and are commonly held across Australian pantries. This defensive characteristic may provide upside if consumer stockpiling or import disruptions persist.
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What comes next for SPC Global
Several near-term catalysts provide multiple opportunities for positive newsflow before year-end:
- Provital functional pouches launch (Q4 FY26)
- Goulburn Valley premium glass range launch (Q4 FY26)
- Nature One China formula launch (Q4 FY26)
- Korea beverage volumes expected to double by June 2026
- Mill Park closure completion (Q1 FY27)
Balance sheet strengthening initiatives continue, with management implementing further improvements in the cash conversion cycle through renegotiated customer and supplier terms, focused inventory management, and margin uplift across the retained product portfolio. The company continues to assess additional capital management strategies aimed at further reinforcing its financial position.
With FY26 guidance reaffirmed and clear visibility into FY27 earnings improvement through the Mill Park savings, SPC Global is executing its transformation with measurable results across both operational performance and strategic positioning.
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