Cobram Estate’s Machinery Acquisition and CEO Shift Signal Operational Risks Ahead
Cobram Estate Olives has reported a record 2025 Australian olive harvest with a 10.2% increase in production and forecasts a strong FY2025 EBITDA of $115 million. The company also announces strategic moves including a CEO relocation to the US and acquisition of farming machinery business Leda Ag.
- 2025 olive oil production rises to 15.3 million litres, up 10.2% from 2023
- FY2025 underlying EBITDA forecast at $115 million, a significant jump from FY2024
- Joint-CEO Leandro Ravetti relocating to California to support US expansion
- Acquisition of Leda Ag to enhance harvester technology and operational efficiency
- Dividend increase to 4.5 cents per share reflecting improved profitability
Record 2025 Olive Harvest
Cobram Estate Olives Limited (ASX, CBO) has successfully completed its 2025 Australian olive harvest, producing a total of 15.3 million litres of olive oil. This marks a 10.2% increase compared to the last comparable 'on-year' harvest in 2023. The company milled over 80,000 tons of olives, with 13.2 million litres coming from its own groves and an additional 1 million litres from third-party fruit processed at its facilities. Supplementing this, CBO secured 1.1 million litres from other Australian millers through supply agreements and spot purchases.
Strong Financial Outlook
Driven by robust sales in both Australia and the USA, particularly for its premium Cobram Estate brand, the company forecasts an underlying EBITDA of approximately $115 million for FY2025. This is a substantial increase from $66.7 million in FY2024 and $40.8 million in the previous on-year FY2023. The strong financial performance reflects both the larger crop and sustained demand for high-quality extra virgin olive oil.
Strategic Leadership Shift
In a move to capitalize on growth opportunities in the US market, joint-CEO Leandro Ravetti will relocate to California in September 2025. This relocation aims to strengthen the company’s executive presence and operational support in the US, which is becoming increasingly important alongside Australian operations. Ravetti will focus on operations and technical aspects, while co-CEO Sam Beaton continues to oversee commercial and financial matters.
Acquisition to Drive Efficiency
CBO has acquired Leda Ag, a Mildura-based farming machinery business and long-term partner, to accelerate the development of more efficient olive harvesters. This acquisition is expected to yield significant cost savings and operational efficiencies across both Australian and US operations. The deal includes an initial payment of $3 million, with an additional $2 million contingent on performance milestones over four years, and brings all Leda Ag employees under CBO’s umbrella.
Dividend Reflects Confidence
Reflecting its improved profitability and cash flow, the company anticipates paying a fully franked dividend of 4.5 cents per share in late November 2025, up from 3.3 cents in the previous year. This signals management’s confidence in the company’s ongoing financial health and growth trajectory.
Bottom Line?
Cobram Estate’s strong harvest and strategic moves set the stage for sustained growth, but investors will watch closely how US expansion and machinery integration unfold.
Questions in the middle?
- How will the integration of Leda Ag impact operational costs and harvester innovation in practice?
- What are the risks to the 2026 harvest forecast given natural agricultural variability?
- How will CEO Ravetti’s relocation influence Cobram Estate’s market share and brand presence in the US?
