SPC Global Reports Q3 FY26 EBITDA Growth on Track with Domestic and International Gains

Q3 FY26 Financial Performance and Outlook

SPC Global Holdings Limited (ASX:SPG) has reported a solid third quarter for FY26, with net sales revenue and normalised EBITDA continuing to improve in line with management expectations. The Group confirmed that normalised EBITDA for the nine months to 31 March 2026 is on track to meet full-year guidance, representing a 25% increase on FY25’s $30.3 million. This follows the company’s transformational FY25 performance, which set the foundation for the current growth trajectory and was highlighted by robust international expansion and synergy realisation efforts.

Management reiterated confidence in delivering FY26 guidance, supported by ongoing synergy savings, improved cash conversion, and disciplined operational execution. Net leverage is expected to remain below four times by 30 June 2026, reflecting tight management of net debt and working capital improvements.

Domestic Business Growth and Margin Expansion

The domestic segment showed strong momentum in Q3 FY26, with branded beverage sales increasing 11% year-on-year and contributing over 45% of domestic EBITDA. Juice Lab Wellness Shots were a standout performer, growing retail sales value by nearly 40% compared to Q3 FY25 and increasing market share by 11 percentage points. Following successful trials, the rollout of these wellness shots through petrol and convenience outlets across Australia and New Zealand commenced in April 2026, initially targeting 200 outlets.

The Group is actively reshaping its product portfolio towards higher-margin branded products, with the branded mix rising from 77% in Q2 FY26 to 81% in Q3 FY26. New product launches planned for Q4 FY26 include Provital functional benefits pouches and a premium glass range under the Goulburn Valley brand, aimed at further enhancing profitability. Expansion in the On-The-Go channel continued with new pack formats such as bag-in-box for food services and catering, securing distribution across large institutional venues and on-premise customers. These initiatives are expected to contribute to revenue growth starting in Q4 FY26 and into FY27.

International Expansion and New Product Development

SPC Global’s international business also advanced its transition towards higher quality and margin revenue streams in Q3 FY26. Promotional sales events in Hong Kong delivered results consistent with half-year expectations, with further events planned. The company completed trials for new oat milk products designed for children, with production scheduled to begin soon, expanding its plant-based offerings for emerging consumer segments.

Nature One, the Group’s infant formula brand, is progressing towards launching a specialised hypoallergenic formula range in China in Q4 FY26. The initial portfolio is expected to generate strong margins, with export sales forecast to reach approximately AUD 10 million over three years. Nature One also completed its first export order for infant formula for special medical purposes with Beingmate Co. Ltd, a major Chinese infant formula company, marking a significant milestone in international growth.

Regional expansion efforts included the first shipments of Original Juice Co. “Black Label” 1.5L orange juice to South Korea, with sales volumes expected to double by June 2026. The Group forecasts export sales exceeding AUD 10 million across Korea and Japan over the next three years. Manufacturing and planning activities supporting the Fonterra contract continue to progress, underpinning a positive outlook for FY26. These developments build on the company’s earlier international growth momentum documented in its strong Asia expansion.

Supply Chain Optimisation and Mill Park Facility Transition

Operational efficiencies remain a key focus, with Q3 initiatives delivering a 10.5% reduction in cost of goods sold and an 11.6% improvement in distribution costs relative to prior periods. The introduction of extended shelf-life capabilities at the Shepparton manufacturing facility supports international product expansion and contributes to lowering working capital intensity.

The planned closure of the Mill Park facility and transition of Juice Lab Wellness Shots production to Shepparton and Griffith remains on track for completion in Q1 FY27. Key milestones achieved include finalising main infrastructure and installing a cooling room, supported by a fully funded $3 million capital solution. This transition is expected to generate more than $8 million in annualised EBITDA savings with a payback period under 12 months, enhancing the Group’s financial resilience.

Monitoring Geopolitical Risks and Market Resilience

SPC Global is closely monitoring the ongoing Middle East conflict for potential impacts but currently assesses no material effect on FY26 financial results. The Group’s strong domestic production infrastructure positions it well to meet any increased consumer demand or shifts in purchasing behaviour that may arise. Recent weeks have seen increased sales of staple products such as tomatoes, baked beans, and packaged fruit by 12-20% across major retailers, with the company securing additional materials to meet expected demand over the next 12 to 18 months.