The ASX-listed group has two of the three biggest selling olive oil brands in Coles and Woolworths but investors have indigestion.
Olive oil consumption has almost doubled in the past 20 years in Australia with the home cooking shift during the pandemic providing fresh impetus, but shares in the biggest local player in the industry,Cobram Estate, with its two main brands Cobram Estate and Red Island, has a combined 36 per cent of olive oil sales in Australia and has been usingand former St Kilda AFL star Nick Riewoldt in marketing campaigns to help drive sales.
Leandro Ravetti, joint chief executive of Cobram Estate, said on Tuesday the company was playing a long game and focused on building its business, and sharemarket investors were making their own assessments.
The Australian olive oil business generated EBITDA of $32.4 million in 2021-22 but this was down from $77 million the previous year.The home cooking shift in the depths of the pandemic delivered a big jump in sales of olive oil across the board. “During the pandemic you got a massive spike,” Mr Ravetti said.
The company is expanding its olive mill capacity at a plant at Boort, north of Bendigo in country Victoria, from 30 tonnes of olives per hour to 80 tonnes.
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