SPC Global Improves Earnings and Margins across Domestic and International Operations

Food and beverage business SPC Global Holdings (ASX: SPG) has reported improved net sales revenue (NSR) and normalised EBITDA for the three months to end June, in line with expectations and underpinned by disciplined execution across domestic and international operations.

The group’s domestic business delivered strong growth for the period, supported by category performance and ongoing mix improvement including beverages (with NSR growth of 11.7%), baked beans and spaghetti (4%), and Ardmona tomatoes (3.5%), which recently became the exclusive Australian-branded canned tomato offering in Woolworths (ASX: WOW).

The proportion of branded, higher-margin products in retail outlets increased by 5.2 percentage points compared to the previous corresponding period, contributing to earnings quality and margin improvement.

The group continued to expand its presence in the on-the-go channel—which typically delivers higher margins—with the introduction of new packaging formats including bag-in-box for the food services and catering markets that are expected to attract new customer segments for the domestic business.

Recent ranging of Naked Life sodas within Ampol petrol and convenience outlets is estimated to provide 400 incremental distribution points, with additional distribution achieved across Amazon Australia and Costco Australia during the quarter.

International Markets

SPC Global’s international business division Nature One delivered a promotional program during the quarter across China, Indonesia, and South Korea, driving an uplift in NSR of approximately $5.5 million.

The group secured ranging for The Original Juice Co Black Label beverages in Costco Japan and Emart Traders South Korea, with sales expected to drive incremental growth and validate SPC Global’s branded export model in attractive international markets.

Japan is Costco’s third-largest market outside the US and one of the world’s largest juice markets, valued at approximately US$9.8 billion and forecast to grow at a compound annual rate of approximately 3.3% over the next decade.

The Original Juice Co Black Label range is forecast to contribute approximately $10m in revenue to SPC Global over the next three years, with the launch of additional products in the coming months adding further growth.

Expanded Singapore Presence

SPC Global continued to expand its presence in Singapore through retail chain NTUC FairPrice.

Juice Lab Wellness Shots are scheduled to launch in NTUC stores this year alongside new opportunities to range Original Beverage Co (1 litre) orange juice nationwide, and will also launch this month across the Cold Storage supermarket chain owned by Dairy Farm International.

SPC plans to progressively extend the range into the Esso petrol and convenience channel before year-end.

The multi‑channel ranging is expected to generate $2m in export revenue over the next three years and establish a reference market for SPC Global’s “better‑for‑you” beverage and wellness portfolio.

Efficiency Program on Track

SPC Global remained on track to deliver its synergy program, realising approximately $2m in savings from SG&A (selling, general and administrative) efficiencies, $3.5m from procurement initiatives, and $1.5m from supply chain productivity improvements.

During the quarter, the group commenced the restructure of its Shepparton production site in Victoria to strengthen manufacturing capability, improve productivity and operational efficiency, and support innovation, creating a more resilient platform for future growth and competitiveness.

Additional production will transition to Shepparton in the coming months following the relocation of select beverage manufacturing lines from the group’s Mill Park site in Melbourne, which is scheduled for closure.

SPC Global also completed a $100m equity raising during the period, resetting the balance sheet from leveraged and constrained to low leverage with strengthened liquidity, while disciplined focus on cash generation improved cash conversion.

SPC expects the combination of EBITDA growth, lower interest expenses, and continued working capital focus to drive a step-change in free cash flow over the coming year.