Oliver's Real Food Achieves 96% EBIT Growth and $2.9M EBITDA in FY2026 Amid Expansion Plans

Oliver's Real Food Reports 96% Year-on-Year EBIT Improvement to Near Breakeven in June 2026 Quarter

Oliver's Real Food Limited posted an EBIT loss of just $13,000 for the June 2026 quarter, a 96% improvement from the $325,000 loss in the same quarter of 2025. The company’s board described this as a continuation of a positive financial trend amid a challenging business environment, including rising petrol prices and consumer confidence issues tied to international events. Notably, road travel declined significantly during weeks 12 to 17 of 2026, coinciding with the Easter long weekend and April school holidays — traditionally peak trading periods for Oliver's.

The company estimated that disruptions during weeks 12 to 17, partly due to the Iran conflict’s impact on April sales and surging petrol prices raising rationing concerns, led to approximately $400,000 in lost sales and a $250,000 profit impact for the quarter. Despite these headwinds, same-store sales rose by $55,000 (1.09%) compared to June 2025, a notable achievement given a smaller store network, indicating stronger like-for-like performance and supporting management’s confidence in the business’s underlying health.

FY2026 Full-Year Results Show $3.645 Million NPBT Turnaround and EBITDA Margin Growth to 12.66%

For the full year ending June 2026, Oliver's Real Food reported unaudited revenue of $22.917 million, down $1.946 million from $24.863 million in FY2025, primarily due to closing underperforming stores. However, total expenses fell by $2.532 million (15.6%) to $13.712 million, reflecting store closures, operational efficiencies, and ongoing cost-cutting measures from the restructuring program.

EBIT swung from a $399,000 loss in FY2025 to a $946,000 profit in FY2026, a $1.345 million improvement. After $1.012 million in interest charges, the operating loss narrowed to $66,000 from $1.650 million the previous year. A $801,000 lease liability write-back contributed to a net profit before tax of $735,000, compared to a $2.910 million loss in FY2025 — a $3.645 million turnaround. EBITDA of $2.902 million represented a 12.66% margin, up from 8.54% in FY2025. Gross margin improved slightly from 63.72% to 63.96%, indicating better cost of goods sold management despite a smaller network.

Store Closures and Cost Controls Drive 18% Drop in Quarterly Operating Expenses

Oliver's achieved an 18.15% reduction in operating expenses in the June 2026 quarter, decreasing costs by $725,000 compared to the same quarter in 2025. This reduction stemmed from store closures, improved operational efficiency, and continued cost-cutting efforts. Revenue declined by $665,000 (11.53%) due to a smaller store footprint, but same-store performance improved.

Quarterly data for FY2026 shows expenses stabilizing between $3.3 million and $3.5 million per quarter, with gross margins consistently above 63%. The June quarter EBITDA of $441,000 (8.64% margin) was the lowest for FY2026 but still 24% higher than the June 2025 quarter’s $356,000. This consistent performance suggests the restructured cost base provides a more stable operating platform.

Same-Store Sales in 2026 Show Mid-Year Dip and Strong Recovery

Oliver's reported same-store sales for the first 26 weeks of 2026 in three segments. Weeks 1–11 saw sales of $5.132 million, up $351,000 (7.34%) versus 2025, reflecting strong early momentum. Weeks 12–17 experienced a decline to $2.580 million, down $204,000 (7.33%) due to reduced road travel amid rising petrol prices and fuel rationing concerns linked to international conflict.

Weeks 18–26 rebounded with $3.259 million in sales, $244,000 (8.09%) above 2025, indicating the mid-year disruption was temporary. Overall, the 26-week same-store sales totaled $10.971 million, $391,000 (3.70%) higher than the prior year. July 2026 trading started positively, with same-store sales running 7% above 2025 levels, suggesting continued recovery.

Pheasants Nest Southbound Store to Close on 19 July 2026 Following Ampol Notice

Oliver's confirmed the Pheasants Nest Southbound store will cease operations on Sunday, 19 July 2026, following a 90-day notice from Ampol under a deed of surrender linked to the July 2025 closure of the Pheasants Nest Northbound site. Ampol exercised its right to reclaim the Southbound site, an expected outcome given the original agreement.

The store had a high fixed cost base, making consistent profitability challenging despite strong sales. While recent financial results improved, the closure was anticipated and factored into company planning. The full financial impact on FY2027 revenue was not disclosed but will be important for investors to monitor.

Wyong Southbound Store Upgrade to Start Within Six Weeks as Part of Network Modernisation

Oliver's announced plans to refurbish its Wyong Southbound store within six weeks, aligning it with the updated design already implemented at Wyong Northbound. This upgrade is part of a broader brand modernisation effort aimed at delivering a consistent, contemporary customer experience across the network. The store will remain open during renovations with some expected disruption.

This investment signals management’s commitment to enhancing existing locations while evaluating new expansion sites. The refurbishment cost was not disclosed. The Wyong corridor, located on a major highway between Sydney and the Central Coast, is a strategic asset for the company.

Two New Sites Under Review as Oliver's Pursues Expansion Following Restructuring

Significantly, Oliver's revealed it is assessing two new sites as part of its first expansion initiative since completing major restructuring. The board has set financial criteria for new site evaluations, and the two locations under consideration show promising potential for network growth and market reach. Further details will be shared if the company proceeds with either site.

This marks a strategic shift from focusing solely on restructuring to pursuing growth. With FY2026 delivering positive EBIT and improved EBITDA margins, Oliver's appears ready to responsibly invest in expansion. Financial parameters for site assessments were not disclosed.

Wage Inflation and 4.75% Minimum Wage Rise Present Major Cost Challenges

Oliver's identified the recent 4.75% minimum wage increase—effectively about 6% including on-costs—as its largest ongoing cost pressure. Labour costs are significant for this highway-based, labour-intensive food service business. Staff costs totaled $1.763 million in the June quarter and $7.628 million for FY2026, making payroll the largest expense.

The company emphasized that strong same-store sales growth offsets wage pressures, with early July 2026 sales up 7%. However, if sales growth slows while wages continue rising, margin gains from FY2026 could be at risk. Inflation and consumer confidence, especially regarding road travel, remain key factors to watch.

Positive Operating Cash Flow Maintained Throughout FY2026

Oliver's maintained positive operating cash flow in all four FY2026 quarters. The June quarter generated $638,000 in operating cash flow, following $665,000 in March, $462,000 in December, and $769,000 in September. Full-year customer receipts totaled $23.517 million, with positive cash generation confirmed by the Appendix 4C. Interest and finance costs paid were $140,000, with no income taxes or dividends paid.

This consistent cash flow performance reflects operational stability from the restructuring, indicating sufficient cash to fund operations, meet obligations, and potentially reinvest. The June quarter’s Appendix 4C showed $5.199 million in customer receipts, $1.763 million in staff costs, $2.429 million in manufacturing and operating expenses, and $107,000 in marketing. No related party interest or directors’ fees were paid.

FY2027 Outlook Focuses on New Sites, Wage Management, and Sustaining Sales Momentum

Looking ahead to FY2027, Oliver's key priorities include the outcome of new site evaluations, maintaining positive same-store sales growth, and managing wage cost pressures. The company’s highway-based model ties performance closely to road travel volumes, influenced by petrol prices, consumer confidence, and economic conditions.

The Wyong Southbound refurbishment, expected within six weeks, marks the first capital reinvestment under the growth phase. The closure of Pheasants Nest Southbound will reduce revenue, making the pace of new site openings critical to stabilizing or growing top-line revenue. The board’s disciplined approach to new investments, with defined financial parameters, aligns with lessons from restructuring. Investors await further updates on the two sites under review.