Half Yearly Report & Accounts

• Cobram Estate Olives Limited (CBO) reported a 9.67% increase in revenue from ordinary activities, reaching A$124.765 million for the half-year ended December 31, 2024.
• However, the net loss after tax attributable to members decreased by 38.19% to A$4.463 million.
• EBITDA profit increased to A$14.45 million, compared to A$8.24 million in the prior corresponding period.
• The company expanded its debt facilities with the Commonwealth Bank of Australia by A$42.24 million to support land acquisitions and grove developments.
• Capital expenditure totaled A$52.07 million, with significant investments in land acquisition and grove development in the USA.
• The FY2025 Californian olive harvest yielded 3.0 million litres of olive oil, a 77.1% increase compared to FY2023.
• The FY2025 Australian harvest is expected to be materially higher than the FY2024 harvest.
• A dividend of A$0.033 per share was paid on November 28, 2024, with a Dividend Reinvestment Plan (DRP) resulting in 923,309 new shares issued at $1.869 per share.
• Net tangible asset backing per ordinary security increased from A$0.62 to A$0.74.

Score: 7

Explanation: The report shows positive trends in revenue and EBITDA, along with strategic investments for future growth. However, the continued net loss and increased debt levels temper the overall sentiment.

• Revenue from ordinary activities increased by 9.67% to A$124.765 million.
• Net loss after tax decreased by 38.19% to A$4.463 million.
• EBITDA profit increased to A$14.45 million.
• Debt facilities expanded by A$42.24 million with the Commonwealth Bank of Australia.
• Capital expenditure totaled A$52.07 million, primarily for land acquisition and grove development.
• The FY2025 Californian olive harvest yielded 3.0 million litres of olive oil, a 77.1% increase compared to FY2023.
• A dividend of A$0.033 per share was paid on November 28, 2024.
• Net tangible asset backing per ordinary security increased to A$0.74.

• Revenue increased by 9.67% to A$124.765 million.
• Net loss decreased by 38.19% to A$4.463 million.
• EBITDA profit increased to A$14.45 million.
• The FY2025 Californian olive harvest showed a 77.1% increase compared to FY2023.
• The company expects a material fair value gain to be recognised for the FY2025 Australian olive crop in the FY2025 full year Financial Report.
• Strong operating cash flows are attributed to increased profitability of olive oil sales.
• Cobram Estate brand achieved 40% growth in sales ($20.04 million).

• Despite increased revenue, the company still reported a net loss of A$4.463 million.
• Net debt ratio increased from 31.5% to 34.4% due to additional borrowings.
• The FY2025 Californian olive harvest was 6.4% lower than the FY2024 harvest.

• The FY2025 Australian harvest is subject to uncertainties associated with agriculture.
• Fluctuations in foreign exchange rates could impact the value of USD-denominated debt and earnings.
• The company's performance is dependent on continued strong customer demand for its products.
• The incentive scheme expiring on 15 September 2027 may impact future land purchases.

The Group expects demand for its high quality Extra Virgin Olive Oil to remain strong into the second half of FY2025 in both Australia and the USA, with new-season Australian olive oil expected to contribute.

Cobram Estate Olives is positioned as a leader in the Australian olive industry and a global leader in sustainable olive farming, focusing on high-quality extra virgin olive oil. The company's expansion in the USA reflects a strategic move to capitalize on growing demand in that market.

• It is difficult to compare Cobram Estate Olives directly to other companies due to its unique focus on olive oil production and its vertically integrated business model.
• However, its revenue growth and EBITDA improvement can be benchmarked against other agricultural and food production companies.
• Companies like Costa Group (CGC) in Australia and large agricultural players in the US could be considered for broader comparison, but their product mix and market focus differ significantly.

• Shareholders benefit from the dividend payment and the potential for future growth.
• Employees may see increased job security and opportunities due to the company's expansion.
• Customers can expect continued access to high-quality olive oil products.
• Suppliers may benefit from increased demand for goods and services.
• Creditors are exposed to increased risk due to higher debt levels, but are also supported by the company's growth and asset base.

• Commence and complete the FY2025 Australian harvest.
• Recognize a material fair value gain for the FY2025 Australian olive crop in the full year financial report.
• Continue expanding Californian groves through land acquisitions and plantings.
• Monitor customer demand and adjust production accordingly.

• November 1, 2024: Cobram Estate Olives Ltd announced its offer to provide its shareholders the opportunity to participate in its Dividend Reinvestment Plan (DRP) at the Annual General Meeting.
• November 12, 2024: The Company signed an amended agreement with the Commonwealth Bank of Australia, increasing its debt facilities by $42.24 million.
• November 28, 2024: Dividend payment date; 923,309 new shares were issued through the DRP at $1.869 per share.
• December 31, 2024: End of the half-year reporting period.
• January 31, 2025: CBO paid a deposit of $3.27 million (US$2.02 million) for the purchase of land.
• February 21, 2025: Date of the ASX Announcement and Directors' Report.
• April-June 2025: Expected commencement and completion of the FY2025 Australian harvest.
• June 30, 2025: Expected date for recording profit relating to the FY2025 Australian crop hanging on the trees.
• September 15, 2027: Expiration date of the incentive scheme related to the land purchase.