Oliver’s Real Food Posts 192% EBIT Surge Amid Store Closures
Oliver’s Real Food Limited reported a striking turnaround in its September 2025 quarter, with EBIT soaring 192% and operating cash flow swinging positive despite a dip in overall revenue.
- EBIT improved 192% to $185k from prior year loss
- Operating cash flow turned positive by $1.145m
- Revenue declined 4.82% due to store closures and lower royalty income
- Same-store sales grew 3.1%, boosted by holiday trading
- Expenses cut 13.15%, including 9% reduction in employment costs
Strong Profitability Turnaround
Oliver’s Real Food Limited delivered a notably improved financial performance in the September 2025 quarter, posting earnings before interest and tax (EBIT) of $185,000. This represents a 192% increase compared to a loss of $201,000 in the same period last year. The company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) also rose by 57% to $702,000, underscoring a meaningful operational recovery.
Cash Flow Recovery Amid Revenue Dip
Perhaps the most striking development was the turnaround in operating cash flow, which swung from a negative $376,000 in the prior corresponding quarter to a positive $769,000, a $1.145 million improvement. This cash flow recovery is a critical indicator of the company’s improving financial health, even as total revenue declined by 4.82% to $5.782 million. The revenue dip was primarily attributed to the closure of three stores; Lithgow, Coffs Harbour, and Pheasant Nest North; and a reduction in EG royalty income.
Same-Store Sales and Cost Efficiencies
Adjusting for the impact of store closures, same-store sales actually increased by 3.1%, signaling that the company’s core operations are gaining traction. This growth was particularly evident during the recent school holiday period, where same-store sales jumped 8% with a 3% increase in transactions. On the cost side, expenses fell by 13.15%, driven by efficiency initiatives and a 9% reduction in employment costs, which included one-off redundancy expenses related to store closures.
Strategic Focus on Profitability
The company reaffirmed its strategy of concentrating resources on profitable stores while closing underperforming locations. This approach appears to be paying off, with improved operational performance and a better financial outcome despite a challenging retail environment. The board expressed cautious optimism about the upcoming summer trading period, which is traditionally busier and could further enhance results.
Looking Ahead
While the quarter’s results are encouraging, the company remains mindful of ongoing market challenges. The positive momentum in same-store sales and cost management will be critical to sustaining growth. Investors will be watching closely to see if Oliver’s Real Food can maintain this trajectory in the face of broader economic pressures and evolving consumer trends.
Bottom Line?
Oliver’s Real Food’s disciplined focus on profitable stores is driving a cautious but clear path to recovery.
Questions in the middle?
- Can Oliver’s sustain same-store sales growth beyond the holiday season?
- What impact will ongoing store closures have on long-term revenue?
- How will cost reduction initiatives affect service quality and customer experience?
