SPC Global’s Debt Shift and Site Closure Pose Execution Challenges Ahead

Strong FY25 Performance Sets Foundation

SPC Global Holdings Ltd (ASX, SPG) has unveiled its consolidated financial results for the 2025 fiscal year, marking a significant milestone following the December 2024 merger of four key Australian food and beverage companies. The group reported proforma net revenue of A$376.2 million and a normalised EBITDA of A$30.3 million, surpassing earlier market guidance. This performance reflects the combined strength of SPC, The Original Juice Co, Nature One Dairy, and Natural Ingredients under a unified strategy.

Notably, the international arm, Nature One, emerged as a standout contributor, accounting for nearly 45% of the group’s EBITDA despite representing just 13.5% of revenue. This highlights the division’s operational efficiency and growth potential, particularly in dairy manufacturing and international markets.

Strategic Integration and Synergies Accelerate Growth

The merger integration has progressed ahead of schedule, with synergy initiatives activated in FY25 expected to deliver an annualised benefit of A$6.2 million in FY26. The group anticipates an additional A$6 million in growth and cost synergies next year, underscoring the value of combining the four businesses. Operational improvements include a new domestic commercial structure targeting five core channels, enabling broader market reach and revenue diversification.

Working capital management remains a priority, with inventory levels aligned to targets and a focus on reducing net leverage from the current 4.1x ratio. The planned closure of the Mill Park juice manufacturing site is underway, expected to yield cost savings with lower-than-anticipated capital expenditure.

Expansion into Premium Beverages and International Markets

SPC Global is expanding its product portfolio with the launch of The Original Beverage Co., a new division focused on premium, better-for-you beverages including functional juices and infused fruit waters. The group has secured partnerships with emerging brands such as Posca Hydrate, Naked Life, and Eclectic Group, aiming to meet growing consumer demand for wellness-oriented drinks.

Internationally, the group is making inroads with Juice Lab products now available in Singapore and New Zealand, exceeding expectations in the wellness shot category. Additionally, Nature One has secured conditional approval to manufacture for Fonterra and entered a strategic partnership with a leading Chinese nutritional food company, further strengthening its regional footprint. The SPC tomato portfolio has also begun distribution in China, signaling a broader export push.

Financial Restructuring and Outlook

In a significant financing update, SPC Global is transitioning its senior lending partner from Scottish Pacific to the Commonwealth Bank of Australia, securing debt financing of A$134 million. This move is expected to reduce annual cash interest costs by over A$3 million, enhancing financial flexibility. The group also raised A$20 million through fixed rate unsecured notes earlier in 2025.

Looking ahead, SPC Global has set an ambitious target to increase normalised EBITDA by 25% in FY26, building on the momentum of FY25. The board-approved Mid-Term Plan for 2026-2030 will be detailed in an upcoming investor webinar, signaling continued strategic focus on growth, operational efficiency, and international expansion.

Group Managing Director Robert Iervasi highlighted the progress made since the merger, emphasizing the strength of the combined businesses and the promising outlook driven by experienced leadership and a diversified product portfolio.