Cobram Estate Olives Posts Record $116.6M EBITDA, Eyes 3,600 Hectares in California
Cobram Estate Olives Limited has reported a record-breaking FY2025, driven by strong sales growth in Australia and the USA, alongside a $178 million equity raise to accelerate its Californian olive grove expansion.
- Record FY2025 EBITDA of $116.6 million, up 75%
- Australian branded sales grow 16.6%, total olive oil production at 14.2 million litres
- Cobram Estate® USA sales double to $42.3 million
- Raised $178 million to fund expansion of Californian groves to 3,600 hectares by 2027
- Declared fully franked final dividend of 4.5 cents per share
Record Financial Performance
Cobram Estate Olives Limited (ASX – CBO), Australia’s largest vertically integrated olive oil producer, has delivered a standout FY2025 with EBITDA soaring to $116.6 million, a 74.8% increase from the previous year. This surge was underpinned by robust demand for its premium extra virgin olive oils, particularly the Cobram Estate® brand, which continues to resonate strongly with health-conscious consumers both domestically and internationally.
The company’s operating cash flow also hit a record $83 million, reflecting the strength of its sales and operational efficiency. Australian operations contributed significantly, with branded sales climbing 16.6% to $141.4 million and total olive oil production reaching 14.2 million litres, marking an ‘on-year’ in the natural biennial crop cycle.
US Market Expansion Accelerates
On the back of this momentum, Cobram Estate Olives completed a $178 million equity raise in late 2025 to fast-track its growth strategy in the United States. The funds will support the acquisition and development of additional farmland in California, increasing the company’s olive grove footprint to approximately 3,600 hectares by the end of 2027. At full maturity, these groves are expected to produce over 9 million litres of olive oil annually, a substantial increase from the current 0.5 million litres.
US sales of Cobram Estate® branded products more than doubled to $42.3 million in FY2025, now representing 65% of total US sales. Despite supply constraints due to the relative immaturity of Californian groves, the company is capitalising on the growing American appetite for high-quality, locally produced olive oil. Cobram Estate® ranks as the ninth top-selling olive oil brand in US supermarkets and second among Californian olive oils, underscoring its rising market presence.
Sustainability and Innovation at the Core
Central to Cobram Estate’s competitive edge is its proprietary Oliv.iQ® system, which optimises productivity, quality, sustainability, and cost-efficiency. This system enables the company to achieve yields and oil extraction rates well above global averages while using significantly less water and fertiliser. Sustainability initiatives remain a priority, with the company maintaining a net carbon sink position and advancing conservation projects such as the Malleefowl habitat restoration in Victoria.
Operationally, Cobram Estate continues to invest in technology and infrastructure, including warehouse automation and bottling capacity expansions, to support its growing production volumes and enhance efficiency.
Outlook and Dividend
Looking ahead, FY2026 is expected to be an ‘off-year’ for Australian olive production due to the biennial crop cycle, with EBITDA anticipated to be below FY2025 levels. However, the company’s maturing groves and expanding US operations provide a strong foundation for future growth. The Board declared a fully franked final dividend of 4.5 cents per share, reflecting confidence in the company’s financial health and growth prospects.
With a vertically integrated model spanning two continents, premium brands, and a clear growth trajectory in the lucrative US market, Cobram Estate Olives is well positioned to continue delivering value to shareholders while championing sustainable agriculture.
Bottom Line?
Cobram Estate Olives’ record results and bold US expansion signal a transformative phase, but investors should watch for biennial crop cycles and execution risks.
Questions in the middle?
- How will the maturation timeline of Californian groves impact supply and profitability in the near term?
- What are the potential risks to the company’s sustainability initiatives amid expansion?
- How might competitive pressures in the US olive oil market affect Cobram Estate’s premium pricing strategy?
