SPC Global FY26 Normalised EBITDA Rises to $38.5 Million on $100M Equity Raise

Earnings Surge Amid Strategic Reset

SPC Global Holdings Ltd (ASX:SPG) has reported a significant turnaround in its financial performance for the 2026 financial year, delivering a 27% increase in normalised EBITDA to $38.5 million, comfortably ahead of its 25% growth guidance. This improvement comes despite a 12% decline in international net sales revenue and a deliberate reduction in lower-margin volume sales domestically.

The company’s gross revenue rose 5.5% to $404 million, with net sales revenue up 4.2% to $331.8 million, reflecting a strategic shift away from low-return volume towards higher-margin branded products. Gross profit margins expanded from 28.8% to 31.9%, underpinning the earnings growth.

Balance Sheet Strengthened by $100 Million Capital Raise

In May 2026, SPC Global completed a fully underwritten $100 million equity raise, a move that materially strengthened its balance sheet and liquidity position. The proceeds were primarily used to reduce borrowings, cutting net debt to $85.8 million at year-end from $123.7 million a year earlier and slashing net leverage from approximately 4x EBITDA to around 2x. The company targets further deleveraging to between 1x and 1.2x by the end of FY27.

This capital injection has also supported ongoing operational initiatives, including the closure of the Mill Park facility and relocation of Juice Lab Wellness Shots production to Shepparton, expected to deliver $8 million in EBITDA benefits in FY27 with a payback period of less than 12 months.

Domestic Business Gains Momentum on Demand-Led Model

The domestic segment, accounting for the majority of group revenue, posted a 36% rise in normalised EBITDA to $22.8 million. This was driven by a disciplined demand-led operating model focused on margin over volume, tighter promotional spend, and a stronger branded product mix.

Beverages emerged as the standout category, with fourth-quarter net sales revenue up 11.7% year on year. The On-the-Go channel also expanded, supported by new product formats like bag-in-box for food service and retail wins including exclusive canned tomato ranging in Woolworths and the rollout of SPC ProVital fruit pouches.

International Expansion Anchored by Premiumisation

SPC Global’s international division, led by Nature One Dairy, grew normalised EBITDA by 16% to $15.7 million despite a 12.5% sales decline, reflecting a shift toward higher-margin, branded, and specialised nutrition products. The division’s gross margin improved from 47.1% to 60.2%, with strong momentum in the second half of FY26.

Key retail partnerships have been secured in Japan (Costco Japan for The Original Juice Co. Black Label), South Korea (Emart Traders), and Singapore (Cold Storage), supporting the company’s ambition to grow exports across Asia and the Middle East. A Memorandum of Understanding was signed with ATAYF 2 Pty Ltd to expand SPC Global’s portfolio in Gulf Cooperation Council markets, a region identified for long-term growth potential.

Synergies and Operational Efficiencies Drive Margin Gains

Since the merger of SPC, The Original Beverage Co., Nature One, and Natural Ingredients in December 2024, SPC Global has realised over $20 million in synergies through procurement, supply chain improvements, and commercial cross-selling. The company rationalised product ranges by more than 20%, focusing on higher-return SKUs and improving sales contribution margin to approximately 60.2% domestically.

Operationally, the company is progressing its Factory of the Future agenda, including automation upgrades, manufacturing footprint consolidation, and capability enhancements at Shepparton. These initiatives are expected to underpin sustainable margin expansion and support innovation pipelines.

Governance and Leadership Enhancements

SPC Global strengthened its board and executive leadership during FY26, appointing Andrew Reitzer, former Metcash CEO, as Group Chair and Graham Maloney as an independent Non-Executive Director and Chair of the Audit & Risk Committee. The creation of a Group Chief Operating Officer role aims to better align domestic commercial and supply chain functions, with Moataz Ahmad assuming the position from September 2026.

The company also refined its remuneration framework, linking executive incentives to both short- and long-term performance metrics aligned with earnings per share growth and shareholder value creation.

Outlook: Targeting Double-Digit Growth and Positive Cash Flow

SPC Global enters FY27 with a clear growth agenda, targeting more than 10% year-on-year net sales revenue growth and greater than 20% EBITDA growth, underpinned by the full-year benefits of synergy initiatives, manufacturing consolidation, and lower cost of debt. The company also expects to generate positive free cash flow for the first time in its consolidated history.

Key growth drivers include scaling the beverages platform and On-the-Go channel domestically, expanding specialised nutrition and dairy offerings internationally, and leveraging new retail partnerships in Asia and the Middle East to build a repeatable export platform.

While the company continues to navigate integration and restructuring costs, the improved earnings quality, disciplined capital management, and operational momentum position SPC Global to convert its strategic reset into sustainable financial performance.