Oliver’s Faces Revenue Challenges Despite Record Profit Growth
Oliver’s Real Food reported a remarkable 1926% increase in EBIT to $527k for the December 2025 quarter, despite a 7.7% revenue decline driven by strategic store closures. Same-store sales rose nearly 6%, underpinning a cautiously optimistic outlook.
- EBIT up 1926% to $527k in December quarter
- EBITDA increased 67% to $1.015m
- Revenue declined 7.7% to $6.299m due to store closures
- Same-store sales grew 5.95%
- Expenses cut by 18.5% through cost efficiencies and store rationalisation
Strong Earnings Despite Revenue Dip
Oliver’s Real Food Limited has posted a striking turnaround in profitability for the December 2025 quarter, with earnings before interest and tax (EBIT) soaring by 1926% to $527,000 compared to the prior corresponding period. This leap is particularly notable given the company’s revenue slipped by 7.7% to $6.299 million, primarily due to the closure of four stores including locations at Coffs Harbour and Pheasant Nest North.
The company’s EBITDA also climbed significantly, rising 67% to just over $1 million, signalling improved operational efficiency and cost control. These results underscore the effectiveness of Oliver’s strategic decision to streamline its store footprint and focus on profitability rather than sheer revenue growth.
Same-Store Sales and Cost Reductions Drive Performance
Despite the overall revenue decline, same-store sales increased by 5.95%, reflecting strong customer engagement and successful promotional strategies. This growth suggests that the remaining stores are performing well and that the company’s emphasis on enhancing the in-store experience is resonating with consumers.
Expenses fell by 18.48%, a direct outcome of store closures and ongoing cost reduction initiatives. This disciplined approach to managing overheads has been pivotal in boosting the company’s bottom line and improving margins.
Cash Flow and Financing Position
Oliver’s reported positive operating cash flow of $462,000 for the quarter, with cash and cash equivalents standing at $303,000 at quarter-end. The company also maintains access to $250,000 in unused financing facilities, providing a buffer for operational needs.
The firm’s debt facilities include a mix of secured and unsecured loans with repayments scheduled to commence in late 2026. Interest paid to related parties amounted to $32,000, while directors’ fees totalled $115,000 for the quarter.
Outlook and Strategic Focus
The Board expressed cautious optimism about the company’s prospects, highlighting a continued focus on same-store sales growth, enhancing customer experience, and maintaining tight cost control. The December quarter’s results suggest Oliver’s is operationally stronger than ever, with a management team delivering on key financial metrics.
Looking ahead, the company aims to build on this momentum, balancing growth ambitions with prudent financial management as it navigates a competitive retail food environment.
Bottom Line?
Oliver’s Real Food’s sharp EBIT rebound amid revenue challenges sets the stage for a critical test of sustained growth and profitability.
Questions in the middle?
- Can Oliver’s sustain same-store sales growth to offset revenue lost from store closures?
- How will upcoming loan repayments impact the company’s cash flow and financial flexibility?
- What further cost efficiencies or strategic initiatives might management pursue to maintain momentum?
