- Olive oil grower and producer Cobram Estate Olives (CBO) has completed its first full day of trading after listing on the ASX
- The Australian business listed on the stock exchange on Wednesday, August 11, under the ticker code CBO
- Cobram released a number of business updates ahead of its listing, including an explanation of its olive trees’ biennial fruit bearing cycles
- COB argues its results should therefore be considered over a two-year period, as its profits are often recorded in a year of production and not sales
- Shares in Cobram Estate Olives are trading up 5.65 per cent at $1.97 per share at 2:18 pm AEST in a $720.6 million market cap
Olive oil grower and producer Cobram Estate Olives (CBO) has completed its first full day of trading after listing on the ASX.
The Australian food business listed on the stock exchange on Wednesday, August 11, under the ticker code CBO.
Since listing, Cobram has released a number of business updates including an explanation of its olive trees’ biennial fruit bearing cycles.
Chair Rob McGavin said in a statement that its trees produced large volumes only every second year.
“Olive trees naturally bear fruit in biennial cycles, with a higher yielding crop one year typically followed by a lower yielding crop in the next year,” Mr McGavin said.
As a result, the Cobram Chair explained the company’s profits were often recorded in a year of production and not sales.
“Under the relevant accounting standards, the profit for each year of harvest is adjusted by the difference between the cost of production and the net realisable value of the oil produced in that year,” Mr McGavin said.
“This means that profit is recorded in the year of production, rather than the year of sale.”
CBO has opened its second day of trading on Thursday at $1.90 per share.
Share were up 5.91 per cent at $1.97 per share at 2:18 pm AEST at in a $720.6 million market cap.