Cobram Estate posts underlying EBITDA of A$61.4 million in 2026
Key Facts
Cobram Estate Olives’ underlying earnings before interest, tax, depreciation and amortisation were A$61.4 million in fiscal 2026, compared with A$116.6 million the previous year, according to the company’s annual report. Overall, the company recorded a net loss after tax of A$4.2 million, after posting a profit of A$49.6 million in fiscal 2025. Underlying profit before tax fell to A$13 million from A$76.1 million. The results showed a divergence between weaker profitability and growth in some sales activities, as olive oil and packaged goods sales rose during the year. The company forecast that earnings and operating cash flows would be materially higher in fiscal 2027.
The company attributed pressure on its Australian operations to a smaller harvest in a low-production year within the natural alternate-bearing cycle of olive trees. Earnings before interest, tax, depreciation and amortisation for the Australian operations were A$52.1 million, compared with A$110 million in fiscal 2025. Oil production from the Australian harvest was 11.1 million litres in fiscal 2026. Although it described the season as a low year, the company said production from its own and third-party groves exceeded the previous low-year level, recorded in fiscal 2024, by 9.9%. That earlier harvest totalled 10.1 million litres.
The company also cited higher temporary water costs in Australia, with the price per megalitre reaching A$349 in fiscal 2026, up from A$139 the previous year. It also said promotional pricing by imported brands pressured the Australian operations. By contrast, group olive oil sales rose 11.9% to A$265.5 million, compared with A$237.4 million in fiscal 2025. Global packaged goods sales increased 16.8% to A$253.2 million. The company said the 2026 crop reflected a low year in the natural production cycle.
Packaged goods growth was faster in the United States, where sales rose 63.1% to A$87.5 million, from A$53.7 million in fiscal 2025. This result included three months of sales after the acquisition of California Olive Ranch and Lucini, valued at A$35.1 million and A$6.7 million, respectively. Chief Executive Sam Beaton said the acquisition of California Olive Ranch in March 2026 expanded the company’s scale and gave it a platform for growth in the United States. He added that most of the initially estimated annual synergies of about US$12 million had already been realised. The company expected the clearest financial impact of these synergies to emerge in fiscal 2027 and beyond.
Cash flows from operations fell to A$47.5 million in fiscal 2026, from A$83 million the previous year. After interest and tax, operating cash flows were A$3.4 million, compared with A$58.1 million. The company linked the pressure partly to higher temporary water prices, alongside Australian harvest conditions. On August 28, 2026, the day results were announced, the stock fell 14.7% to A$2.82, according to the results conference transcript published on Investing.com. The company declared a final dividend of 4.5 Australian cents per share, payable on November 6, 2026.
Cobram Estate forecast that Australia’s fiscal 2027 harvest would be materially higher than the 2026 harvest and exceed the previous bumper-year harvest in fiscal 2025, subject to seasonal conditions. It said the group’s earnings and operating cash flows in 2027 were expected to be materially higher than their 2026 levels. It also plans to plant about 840 hectares of olive groves in California during fiscal 2027, followed by 420 hectares in fiscal 2028. The company held its annual meeting on October 30, 2026. The final dividend is due to be paid on November 6.