SPC Global Holdings Lifts Earnings with Shift to Higher-Margin Products

SPC Global Holdings (ASX: SPG) reported net sales revenue (NSR) of $331.8 million for FY26, down from $376.2m as it deliberately moved away from lower-return volume towards higher-margin branded products.

Normalised EBITDA rose 27% to $38.5m from $30.3m, exceeding SPC Global’s 25% growth guidance as both its domestic and international businesses improved margins.

Free cash flow improved to a $4.1m outflow from $22.9m a year earlier, while the normalised net loss after tax was broadly steady at $11.6m compared with $11.5m in FY25.

A fully underwritten $100m equity raising completed in May reduced net debt to $85.8m from $123.7m and cut net leverage from four times EBITDA to around two times.

The result leaves SPC Global entering FY27 with a reshaped manufacturing footprint, expanding international distribution, and a further focus on converting earnings growth into positive free cash flow.

Earnings Quality Improves Further

Domestic NSR declined to $287.7m from $325.4m as private-label volumes were reduced, but EBITDA increased to $22.8m from $16.7m through tighter promotional discipline and a greater weighting towards branded, higher-margin products.

Momentum strengthened in the fourth quarter, when beverages NSR rose 11.7% year on year, tomatoes increased 3.5%, and baked beans and spaghetti grew 4.0%, alongside a further 5.2 percentage-point increase in the branded product mix.

“FY26 was the year we moved from integration to performance, from strategy to delivery, and from ambition to a stronger, more credible platform for sustained growth,” group managing director Robert Iervasi said.

“There is more to do, but we remained focused on one clear objective, to continue to strengthen the foundations of our company so that the business is better positioned to deliver consistent earnings growth, stronger cash generation and attractive shareholder returns over the medium term.”

“SPC Global is a stronger, more focused and better capitalised business than it was twelve months ago, and we enter FY27 with confidence in our ability to convert that platform into stronger earnings and cash flow

International Margins Gaining Ground

International NSR fell 12.5% to $45.9m as SPC Global moved away from lower-margin manufacturing arrangements, while its sales contribution margin increased to about 60.2% from 47.1% and EBITDA rose to $15.7m from $13.6m.

Nature One delivered a strong fourth quarter across China, Indonesia, and South Korea, with promotional activity contributing about $5.5m of NSR and lifting sales around 50.8% year on year.

New commercial arrangements include Black Label ranging with Costco Japan, Black Label Orange Juice through Emart Traders in South Korea, and Juice Lab Wellness Shots through Cold Storage in Singapore contributing to a combined export ambition of about $37m over the next three years.

SPC Global has also signed a memorandum of understanding with ATAYF 2 Pty Ltd for a proposed distribution partnership covering food, beverages, and dairy products across six Middle Eastern markets including the United Arab Emirates, Saudi Arabia, and Qatar.

Synergy Benefits Delivered

More than $20m of synergy benefits have been delivered through procurement, supply chain productivity, overhead reductions and commercial cross-selling, with the broader integration program remaining on track.

The closure of Mill Park, transfer of Juice Lab Wellness Shots production to Shepparton, and third-party co-packing of Black Label juice in Griffith are expected to deliver around $8m of EBITDA benefits in FY27, with annualised benefits expected to exceed $11m and a payback period of less than 12 months.

SPC Global is targeting greater than 10% NSR growth from scalable domestic platforms during FY27, while its international business is expected to deliver growth above the same level as it increases its weighting towards premium branded products.

Across the domestic and international businesses, the group is targeting EBITDA growth of more than 20% and positive free cash flow for the first time in the consolidated group’s history.

Net leverage is targeted to fall further to between one and 1.2 times EBITDA by the end of FY27 as the full-year synergy contribution, manufacturing changes, and lower debt costs support the next phase of the business.