Cobram Estate FY26 slides: COR acquisition drives US growth amid profit decline

Cobram Estate Olives Limited (ASX:CBO) reported a decline in FY26 results, driven by the acquisition of California Olive Ranch (COR) and the challenges of an off-year crop cycle in Australia. The company's shares fell 14.7% to $2.82 following the announcement. While the acquisition is expected to bolster US growth, the normalization of EBITDA fell by 47.3% to $61.4 million, and the statutory net loss widened to $4.2 million.

The significant decline in Australian olive oil EBITDA, attributed to lower production, higher water costs, and modest price reductions, was partially offset by a $33.5 million tax benefit from the recognition of historical US net operating losses. Despite these challenges, Cobram Estate strengthened its balance sheet through a $177.8 million capital raising, resulting in a net debt to real tangible assets ratio of 34.7%.

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