Half Year 2025 Results presentation

• Cobram Estate Olives Limited (CBO) announced its Half-Year FY2025 results, showcasing significant growth in several key areas.
• Olive oil sales increased by 13.5% to $123.5 million compared to 1HFY24.
• Packaged goods sales saw substantial growth, with a 20.9% increase in Australia and an 18.5% increase in the USA.
• Cobram Estate branded product sales grew significantly in both the USA (103.4%) and Australia (25.7%).
• EBITDA increased by 75.4% to $14.5 million.
• Operating cash flows increased by 36.2% to $43.6 million.
• The company anticipates a materially larger Australian olive crop in FY2025 compared to FY2024, to be harvested between April and June 2025.
• A fair value gain is expected to be recognized for the FY2025 Australian Olive crop in the FY2025 full year financial report.
• The Group significantly expanded its USA landholding in 1HFY25 and continued to invest in growth projects both in the USA and Australia, investing a total of $52.1m during the six-month period.

Score: 8

Explanation: The report presents a positive outlook with strong financial results, sales growth, and strategic expansion initiatives. The company's focus on sustainability and brand building further contributes to a favorable sentiment.

• Olive oil sales increased by 13.5% to $123.5 million in 1HFY25.
• Packaged goods sales increased by 20.9% in Australia and 18.5% in the USA.
• Cobram Estate branded product sales grew by 103.4% in the USA and 25.7% in Australia.
• EBITDA increased by 75.4% to $14.5 million.
• Operating cash flows increased by 36.2% to $43.6 million.
• The FY2025 Australian olive crop is expected to be materially larger than the FY2024 crop.
• The company has increased its debt facilities with CBA to support the purchase of 1,596 hectares of land in California, increasing its existing facilities by $42.2 million.
• The Boort olive mill capacity expansion will be completed prior to harvest commencing in April 2025, and in the absence of further plantings or third-party contracted growers, no further investment to increase capacity will be required at either of CBOs Australian olive mills.

• Significant growth in olive oil sales, particularly in packaged goods.
• Substantial increase in Cobram Estate branded product sales in both the USA and Australia.
• Strong growth in EBITDA and operating cash flows.
• Expected larger Australian olive crop in FY2025.
• Positive trading conditions continuing into January and February 2025.
• Expansion of land holdings in the USA to support future growth.
• Increase in the milling capacity at the Boort olive mill.
• The Group continues to achieve significant growth in operating cashflows, with cash generated from operations increasing 36.2% to $43.6m in 1HFY25 (1HFY24: $32.1m).

• Net loss after tax of $4.5 million, although this is an improvement from the $7.2 million loss in 1HFY24.
• The company's sales growth in both Australia and the USA was constrained by its supply of olive oil.

• The expected Australian crop size is subject to the uncertainties associated with farming.
• The estimated market value of the olive oil produced is calculated, and the actual value will not be known until it is completely sold.
• Supply of Australian olive oil will remain very tight through to the completion of the FY2025 harvest.

CBO expects strong sales, profitability, and operating cash flow in the second half of FY2025, driven by robust consumer demand. FY2025 reported EBITDA is expected to be materially higher than FY2024.

• Sustained demand for CBOs extra virgin olive oil, together with the Companys marketing initiatives, led to robust sales growth and improved trading results in 1HFY25.
• The Company anticipates continued growth in olive oil sales in the second half of FY2025.

The announcement reflects a positive trend in the olive oil industry, with increasing consumer demand for premium extra virgin olive oil. CBO's focus on sustainable practices and vertically integrated operations positions it well to capitalize on this trend.

• CBO's vertically integrated model is similar to that of other large agricultural producers like Costa Group (CGC), allowing for greater control over the supply chain and quality.
• The company's focus on branded products aligns with industry trends towards premiumization, as seen with companies like Bunge Limited in the edible oils sector.
• CBO's sustainability initiatives are comparable to those of global food companies like Unilever, which are increasingly focused on reducing their environmental impact.

• Shareholders: Positive impact due to increased profitability and growth prospects.
• Employees: Positive impact due to company expansion and job security.
• Customers: Positive impact due to continued access to high-quality olive oil products.
• Suppliers: Positive impact due to increased demand for olive oil and related products.
• Creditors: Positive impact due to improved financial performance and debt management.

• Continue growth capex program focused on growing olive oil supply.
• Complete the Boort olive mill capacity expansion prior to the Australian olive harvest in April 2025.
• Continue grove developments in California to meet strong demand for Californian olive oil.
• Commission the new bottling line at the Woodland site in the second half of 2025.

• 31 December 2023: Comparative period for financial figures (1HFY24)
• 30 June 2024: Date of external valuation of trees and irrigation assets
• 31 December 2024: End of the reporting period for Half-Year FY2025 results
• 19 February 2025: Date of water price assessment
• 21st February 2025: Date of ASX Announcement and Results Presentation
• April June 2025: Expected harvest period for the FY2025 Australian olive crop