Why this consumer share is up 10% on earnings guidance

This company's shareholders have seen their holdings gain 46% in a year.

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The Cobram Estate Olives Ltd (ASX: CBO) share price is pushing higher on the back of its earnings guidance released today.

The olive oil producer saw its share price up about 10% at one point during morning trade.

Australia's largest vertically integrated olive farmer is forecasting underlying EBITDA of approximately $115 million for FY25.

That would see company realise an earnings increase of around 72% on its FY24 figure.

Cobram posted EBITDA of $66.7 million for FY24, which represents an increase of about 63% on the company's result for FY23.   

Woman presenting financial report on large screen in conference room.

Image source: Getty Images

Bumper crop

Cobram stated its 2025 Australian olive harvest produced 14.2 million litres of oil  from 80,000 tons of olives.

The company, with farms in Australia and the United States, also stated it secured an additional 1.1 million litres of olive oil from other Australian millers.

A Cobram spokesperson said that brings the company's total olive oil production from its 2025 Australian harvest to 15.3 million litres.

Due to the natural biennial cycle of olive yields, 2025 was, as expected, a higher-yielding crop year ('on-year') in most of CBO's Australian olive groves.

Our total production (CBO's and long term third party processed) was 10.2% higher than our last 'on-year' harvest in 2023 of 12.9 million litres.

A strong past 12 months

It's been a good year for Cobram shareholders, with the company's share price gaining about 40% over the past 12 months.

Cobram shares are now changing hands for around $2.34 each, an all-time high.

Cobram owns a portfolio of premium olive oil brands including Cobram Estate and Red Island.

The company's olive farming assets include over 2.6 million olive trees planted on 7,000 hectares of farmland in central and north-west Victoria.

Cobram also has 790,000 trees planted on 1,025 hectares of long-term leased and freehold properties in California.

The company also owns mills and bottling facilities, in addition to other farming assets, firmly positioning Cobram as a leader in the Australian olive industry.

And the company is pushing ahead with its expansion plans.

Cobram recently acquired farming machinery business Leda Ag in a deal worth around $5 million.

The olive oil producer stated the acquisition of its former partner will allow Cobram to realise significant "cost savings and operational efficiencies" in Australia and the US.

Motley Fool contributor Steve Holland has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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