Oliver’s Reports 96% EBIT Improvement Despite 11.5% Revenue Decline
Oliver’s Real Food Limited posted a 96% improvement in EBIT for the June 2026 quarter despite an 11.5% revenue drop due to store closures. The company’s focus on operational efficiency and cost control drove EBITDA up 24%, while same-store sales edged higher by 1.09%.
- Quarterly EBIT loss shrinks 96% to $13k
- Revenue falls 11.5% due to store closures
- Same-store sales grow 1.09% despite challenging conditions
- Expenses cut by 18.15%, boosting margins
- Two new sites under assessment for expansion
Profitability Edges Closer Despite Revenue Headwinds
Oliver’s Real Food Limited (ASX:OLI) has tightened its EBIT loss to just $13,000 for the June 2026 quarter, a remarkable 96% improvement on the $325,000 loss from the same period last year. This progress comes amid an 11.53% revenue decline to $5.1 million, primarily driven by strategic store closures implemented over the past year.
The company’s EBITDA climbed 24% to $441,000, supported by an 18.15% reduction in expenses, reflecting improved operational efficiency and ongoing cost-cutting measures. Same-store sales nudged higher by 1.09%, signalling resilient customer demand despite a challenging business environment marked by inflationary pressures and disruptions linked to the Iran conflict in April.
Full Year Returns to Profitability with Strong Cash Flow
For the full financial year, Oliver’s posted an EBIT of $946,000, reversing the prior year’s $399,000 loss, while net profit before tax swung to a positive $735,000 from a $2.91 million deficit. The company’s gross margin percentage held steady at around 64%, and expenses were slashed by $2.53 million year-on-year, underscoring the impact of the leaner store network and efficiency gains.
Operating cash flow remained positive at $638,000 for the quarter, contributing to a net cash increase of $293,000. The company’s balance sheet shows $273,000 in cash and $13.5 million drawn from $13.76 million in financing facilities, with no related party payments made this quarter.
Store Network Adjustments and Site Investments
Oliver’s is set to close its Pheasants Nest Southbound store on 19 July 2026, following a deed of surrender with landlord Ampol. Although the store generated strong sales, its high fixed costs made consistent profitability elusive. The closure was anticipated after the Northbound site was surrendered last year.
Meanwhile, the Wyong Southbound store will undergo a refurbishment within six weeks, aligning its look with recently upgraded locations. The store will remain operational during the upgrade, reflecting Oliver’s commitment to enhancing customer experience and brand consistency.
Expansion Plans Gain Momentum
Having stabilised its operations through significant restructuring over the past two years, Oliver’s management is now pursuing growth opportunities. Two new sites are under active assessment, with financial parameters set by the Board to ensure disciplined expansion. Further announcements will follow should these opportunities proceed.
Despite cost pressures from a recent 4.75% wage increase and associated on-costs, the company reports strong same-store sales growth, with July 2026 trading already up 7% year-on-year. The ability to maintain momentum in same-store sales will be critical as Oliver’s navigates inflationary challenges and seeks to capitalise on new locations.
Bottom Line?
Oliver’s improved profitability and positive cash flow set the stage for cautious expansion, but rising wage costs and store closures will test its operational resilience.
Questions in the middle?
- Can Oliver’s maintain same-store sales growth amid ongoing inflation and wage pressures?
- Will the two new sites under consideration deliver meaningful returns to justify expansion?
- How will the closure of Pheasants Nest Southbound impact overall network profitability going forward?
