Cobram Estate delivers off-year result while COR acquisition transforms USA footprint
In its FY2026 results presentation delivered on 28 August 2026, Cobram Estate Olives Limited reported normalised EBITDA of $61.4m for the twelve months to 30 June 2026, a scheduled Australian “off-year,” alongside the transformational March 2026 acquisition of California Olive Ranch, Inc. (“COR”) that positions the vertically integrated olive oil producer as the USA’s #1 olive oil producer and marketer.
Presented by Joint-CEOs Leandro Ravetti and Sam Beaton, the update detailed global packaged goods sales growth of 16.8% to $253.2m. Management flagged that FY27 EBITDA is expected to be materially higher than FY26, driven by the Australian “on-year” crop and a full-year COR contribution.
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FY2026 results at a glance
The headline scorecard reflected the natural biennial cycle. While normalised EBITDA fell 47.3% against FY25’s on-year figure, the two-year rolling average EBITDA, the more meaningful measure for a biennial business, held effectively flat.
| Metric | FY26 | Change vs FY25 |
|---|---|---|
| EBITDA (normalised) | $61.4m | (47.3)% |
| EBT (normalised) | $13.0m | (83.0)% |
| 2-Year Rolling Avg EBITDA | $90.9m | +0.3% |
| Operating cash flow (pre-tax & interest) | $47.5m | (42.8)% |
| Adjusted asset value | $1.4bn | +43.4% |
| Global packaged goods sales | $253.2m | +16.8% |
| Australia packaged goods | $165.7m | +1.6% |
| USA packaged goods | $87.5m | +63.1% |
The two-year rolling average EBITDA of $90.9m (+0.3%) is the key figure investors should note. It smooths the natural off-year and on-year swing, indicating underlying earnings stability across the cycle rather than a structural decline.
Why an “off-year” matters
Olive trees naturally bear fruit in two-year (biennial) cycles, alternating between a low-yielding “off-year” and a higher-yielding “on-year.” FY26 was an Australian off-year, and management confirmed FY27 is an on-year.
The Australian FY26 harvest produced 11.1m litres, down from 14.2m litres in FY25, yet still 9.9% above the previous off-year of 10.1m litres in FY24. This is a known and managed agricultural rhythm, which reframes the earnings decline as expected rather than a warning sign.
The COR acquisition: a transformational USA step
The strategic centrepiece of the presentation was the COR acquisition, completed 26 March 2026, for total consideration of $245.1m. This comprised cash of $161.8m, COR vendor notes of $64.9m, and purchase price warrants of $19.8m at acquisition, less a $1.3m post-closing adjustment.
The transaction added two brands, California Olive Ranch® and Lucini®, approximately 1,675 hectares of owned and leased groves, around 2,500 hectares of contracted third-party groves, and a large-scale mill, bottling and warehouse facility at Artois, California. Management stated the acquisition positions CBO as the USA’s #1 olive oil producer and marketer and the #3 branded olive oil supplier in USA supermarkets.
The California Olive Ranch takeover, completed on 26 March 2026, also benefited from favourable AUD/USD movements that reduced the upfront cash component of settlement by A$7.1 million, preserving additional balance sheet flexibility at a point when the group was absorbing significant acquisition-related debt.
COR Positioning
“Acquisition of California Olive Ranch, Inc. (“COR”) in March 2026 to deliver transformational sales and production growth in the USA and positions CBO as the USA’s #1 olive oil producer and marketer.”
On integration, management noted most of the initial ~US$12m annualised synergies have been implemented, with the balance targeted by end-FY27. The company is targeting an increase to US$20m by FY30, which includes the impact of higher yields and lower costs per litre.
Importantly, the reported net loss of $(4.2)m was driven by a $41.8m warrant expense, a non-cash item relating to the fair value at acquisition and mark-to-market at 30 June 2026. This is an accounting entry connected to the acquisition structure, not an operational cost.
USA sales surge 63%
The USA emerged as the clear growth engine. USA packaged goods sales rose 63.1% to $87.5m, including three months of California Olive Ranch® contributing $35.1m and Lucini® contributing $6.7m.
Cobram Estate® supermarket sales in the USA, excluding big-box retailer rotations, grew 6.5%. By value, the group’s three brands ranked as follows in USA supermarkets:
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California Olive Ranch® (4th)
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Cobram Estate® (8th)
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Lucini® (9th)
Australian brand strength in a competitive market
Australian operations retained category leadership despite aggressive promotional campaigns run by imported brands. Australian packaged goods sales reached $165.7m (+1.6%), with Cobram Estate® up 2.1% to $102.9m. CBO retained category leadership with a 35.7% combined value share.
Grove cost pressure weighed on cash flow, with the temporary water weighted average price (WAP) rising to $349/ML in FY26 from $139/ML in FY25. Management noted this was a key driver of lower operating cash flow, though water market conditions have recently eased. Continued brand growth against heavy import discounting points to durable consumer demand for locally produced extra virgin olive oil (EVOO).
Balance sheet and capital position
The balance sheet was strengthened following a $178m capital raising completed in September and October 2025, which contributed $177.8m in proceeds. Adjusted asset value stood at $1.4bn against net borrowings of $437.3m, with the net debt ratio at 35.6% (FY25: 32.7%).
Total available cash and undrawn debt facilities were $115.5m as at 30 June 2026, while real tangible asset value was $1.26bn against net debt of $437.3m.
The company declared a final FY26 dividend of 4.5 cents per share, 100% franked, payable 6 November 2026. A Dividend Reinvestment Plan (DRP) is available at a 2.5% discount. Key dates are:
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Ex-dividend date: 15 October 2026
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Record date: 16 October 2026
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DRP final election date: 19 October 2026
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Payment date: 6 November 2026
Growth roadmap and FY27 outlook
Management outlined a forward roadmap anchored on maturing assets across both markets. FY27 is an Australian “on-year,” with the crop expected to be materially larger than FY26 and above FY25’s on-year harvest, subject to normal agricultural risks. On that basis, FY27 EBITDA and operating cash flow are expected to be materially higher than FY26.
In the USA, grove expansion continues at pace. Following 340 hectares planted in FY26, the company plans approximately 840 hectares in FY27 and 420 hectares in FY28, lifting total Californian grove area 42% to ~4,260 hectares by end-FY28.
Over the longer term, average Australian production is expected to rise to ~21m litres per annum as groves mature, with mature Australian grove area expected to increase 33% by FY32. Management identified three levers for USA earnings growth:
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Growing oil supply through maturing groves, improving yields, and reducing production costs per litre.
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Driving branded sales through a stronger retail footprint and improved portfolio architecture.
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Benefiting from a full-year of transaction synergies implemented.
The investment thesis rests on maturation. Management noted debt is expected to decrease over the medium term as immature groves mature, with over $130.2m invested across two years yet to produce income now positioned to convert into sustainable profit and cash flow. Management stated they remain highly optimistic for the medium and long-term outlook across both the Australian and USA businesses.
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