Cobram Estate Olives Reports 167.8% Profit Surge, US Sales Hit A$42.3 Million
Cobram Estate Olives Limited (ASX – CBO) delivered a record FY2025 with a 167.8% surge in net profit and doubled US branded sales, underpinning its growth strategy and sustainability commitments.
- Record net profit after tax of A$49.6 million, up 167.8%
- Revenue increased 6.1% to A$241.7 million
- US branded sales more than doubled to A$42.3 million
- Completed major capital projects including Boort mill expansion and Leda Ag acquisition
- Announced increased fully franked dividend of 4.5 cents per share for November 2025
Strong Financial Performance
Cobram Estate Olives Limited (ASX, CBO), Australia's largest vertically integrated olive farmer and marketer of premium extra virgin olive oil, has reported a landmark financial year ended 30 June 2025. The company posted a net profit after tax (NPAT) of A$49.6 million, a remarkable 167.8% increase from the prior year, alongside a 6.1% rise in revenue to A$241.7 million. This performance was driven by robust demand for its branded products and operational efficiencies across its Australian and US operations.
Growth in Core Markets and Brand Strength
Branded sales continue to be the engine of growth, with Cobram Estate branded sales in Australia rising 21.2% to A$100.7 million. In the United States, the company’s Cobram Estate brand more than doubled sales to A$42.3 million, now accounting for over 65% of total US sales. This surge reflects growing consumer preference for locally produced, high-quality extra virgin olive oil and the company's expanding footprint in the US market.
Strategic Investments and Capacity Expansion
FY2025 saw the completion of significant capital projects, including the expansion of the Boort olive mill to 80 tonnes per hour capacity, positioning the company to process increased volumes from maturing groves and third-party growers. Additionally, CBO acquired Leda Ag Pty Ltd, a trusted partner in manufacturing and servicing its proprietary olive harvesters, enabling internalization of harvester production and anticipated cost efficiencies.
Sustainability Leadership and Environmental Initiatives
Cobram Estate Olives remains committed to sustainability, advancing its 2030 Sustainability Strategy. Highlights include maintaining a better-than-neutral greenhouse gas emissions position, progressing a conservation fence for the threatened Malleefowl, and securing a sustainability-linked loan with Commonwealth Bank of Australia tied to environmental KPIs. The company also reported strong progress in packaging recyclability and waste reduction, aligning with national targets in Australia and the US.
Financial Position and Dividend Outlook
The company’s adjusted asset base grew to A$974.8 million, supported by land acquisitions and inventory increases, while borrowings rose to A$263.9 million to fund growth initiatives. Reflecting its strong cash flow and profitability, the Board declared a fully franked final dividend of 3.3 cents per share for FY2025 and intends to increase this to 4.5 cents per share payable in November 2025, signaling confidence in sustained shareholder returns.
Governance and Leadership
The Board, comprising experienced executives and independent non-executive directors, continues to oversee the company’s strategic direction and risk management. Notably, Joint-CEO Leandro Ravetti will relocate to California to bolster US operations, underscoring the strategic importance of the American market to CBO’s future growth.
Bottom Line?
With record earnings and a clear growth trajectory in the US, Cobram Estate Olives is poised for continued expansion, though agricultural and market risks remain.
Questions in the middle?
- How will the maturation of US groves impact production volumes and profitability in the next 3-5 years?
- What are the potential effects of rising water costs and climate variability on future crop yields?
- How will the sustainability-linked loan KPIs influence operational and financial decisions going forward?
