ASX Agribusiness Giants Show Robust Growth Post FY24 Results
Cobram Estate Olives saw its share price rise by nearly 3% to $1.60 following the release of its FY24 results. The company reported a significant 34.8% increase in revenue, reaching $227.8 million, driven by a 35% surge in olive oil sales. This revenue growth propelled net profits to an impressive 140% increase, totaling $18.5 million. The strong performance was largely supported by the expanding presence of packaged goods in both Australian and US markets, coupled with increased household penetration in Australia and broader distribution channels in the US. The company’s production levels were equally impressive, with 13.3 million litres of olive oil produced across its operations, including a record US harvest of 3.2 million litres, cementing its status as one of the largest olive oil producers in the United States.
The company’s leadership underscored the year’s successes, noting, "FY2024 was a pleasing year for the Company, characterized by the ongoing robust demand for our extra virgin olive oil (EVOO), as consumers continue to recognize its high quality and positive health attributes." The outlook for FY25 remains optimistic, with sustained demand anticipated despite a global olive oil shortage.
Similarly, Fonterra Shareholders Fund experienced a positive market response, with shares inching up nearly 1% to $4.03. The company’s announcement of an increased FY25 Farmgate Milk Price forecast, now set at a midpoint of $8.50 per kilogram of milk solids (kgMS), reflects recent improvements in Global Dairy Trade (GDT) prices and a solidified balance sheet. The company also updated its FY24 earnings guidance, projecting earnings from continuing operations at the top end of the previously forecasted range of 60-70 cents per share, positioning Fonterra for a strong full-year dividend.
Fonterra’s CEO, Miles Hurrell, emphasized the company’s strong performance, stating, "As we look to close out the books for the year, it's become clear that we have maintained strong performance across FY24. We're on track for a strong full-year dividend."
Both Cobram Estate Olives and Fonterra Shareholders Fund have demonstrated solid growth, positioning themselves as standout performers in the ASX agribusiness sector. Investors are closely watching these developments as the companies continue to build on their FY24 successes and look ahead to further growth in FY25.
