Cobram Estate Olives Limited (ASX:CBO) Announces Half-Year FY2025 Results
Financial Performance
Cobram Estate Olives Limited (CBO) reported a 13.5% increase in olive oil sales for the first half of FY2025, reaching $123.5 million compared to $108.9 million in the previous year. Packaged goods sales rose by 20.9% in Australia and 18.5% in the USA. The company’s EBITDA surged by 75.4% to $14.5 million, while cash generated from operations grew by 36.2% to $43.6 million.
Operations & Growth Strategy
The company invested $52.1 million in growth projects. The company is currently in the process of acquiring additional land in California, and milling capacity at its Boort olive mill capacity has been increased. These initiatives are expected to support ongoing sales growth and operational efficiency.
Future Outlook
The company anticipates sales, profitability, and operating cashflow to remain strong in the second half of FY2025. FY2025 is expected to be an “on” year for CBO’s Australian groves, with the upcoming harvest projected to be significantly larger than FY2024. CBO also plans to maintain its growth capex program, focusing on increasing USA olive oil supply.
CBO also anticipates FY2025 reported EBITDA to be materially higher than FY2024.
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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