- History: The family that owns the business has been active in Olive Oil production for three generations. The Olive Oil Press was established in the present location in 1972 and all of the machinery was renewed in the period 2002-2004.
- Location: The Olive Press is located in one of the prime olive-producing regions of Cyprus, with a long tradition for quality olive-oil. It is within 15 minutes driving distance from Larnaca Port and Larnaca airport.
- Price: The Business with all industrial equipment is offered at EUR 660.000, however there is also an option to buy the freehold land of the business with additional investment of EUR330.000
- Buyer has an option to buy 75% instead of 100% the shareholder that will retain 25% can assist with management and operation of the factory
In summary, the factory has two outputs:
i. Extra Virgin Olive Oil: In most cases, the olive producers only require the service of the factory to produce olive-oil. In this case, the factory only charges for olive oil extraction. In some cases, the factory may also buy the olive-oil and sell it on the wholesale market for consumption in Cyprus or for export. Currently, the business will only buy olive-oil if it already has orders from traders, therefore it does not take any commercial risk.
ii. Olive Kernel Pulp: The centrifugal presses separate the olive kernel pulp, which comes out into a drying area by separate conveyor. The olive kernel always belongs to the factory, regardless of whether the olive-oil is taken by the producer or bought by the factory. This provides additional income since kernel is sold as fuel
i. The olive producers pay the Press about €100 per ton of olives pressed. Currently, the factory presses about 1.000 tons of olives annually, so income from olive pressing is about €100.000.
ii. For every 1 ton of olives pressed, 1 ton of wet olive kernel pulp is produced at the end of the process - about the same weight as the olives, because of the water added during the process. The olive kernel belongs to the Press. About 20% of the kernel is used by the business for its own water boiler, 80% is sold wet at around €30 per ton, so income from olive kernel pulp is about €24.000 (1.000 X 80% X €30).
iii. Therefore, the Gross Income from pressing 1.000 tons of olives, is about €124.000. The main costs of the business are electricity and wages and amount to about €50.000 annually. Therefore, the business currently generates €74.000 Net Profit Before Tax.
Profit may be increased substantially, by bottling and/or trading olive-oil, as discussed below.
The investment proposal presents the following advantages
- Great potential to use the factory as a base to expand to trading of Olive Oil. New owner may add a bottling and packing-plant on-site, to produce and market olive oil under his/her own brand or 3rd party brand. If the Olive Press owner wants to trade the oil, it can be bought around €2,50/kg to €3,30/kg (€2,00 to €2,64 per litre), on the spot, depending on the season.
- Freehold land & factory with plenty of room to expand. The factory is built on a plot with area of 2.676 sq.m. out of which about 2.000 sq.m. are vacant. The additional facilities that can be built on this vacant area are about 1.800 sq.m on two floors (Ground and 1st Floor) with a maximum height of 8,3 m.
- The land, property and factory has no mortgage, Bank debt or any other liabilities
- Production capacity can be increased without adding shifts. Current maximum output is about 1,2 tons of Olive Oil per hour from the two centrifugal presses (in sales value that’s 1,2 tons X €500 = €600 per hour). More business can be generated by offering slightly lower prices for olive pressing than competitors.
- The business is certified for the production of Organic Olive Oil according to the EU standard EN 45011-1998. Organic Olive Oil is a high-profit product with increasing demand worldwide.
- Factory is licensed by the Cyprus Ministry of Health according to the Law for Olive Oil Mills and licensed to operate by the Ministry of Commerce, Industry & Tourism.
- The business has been in operation since 1972 and enjoys an excellent reputation and regular clients.
- The factory is located in one of the best olive-producing areas in Cyprus, in Larnaca District. However, because of its long tradition and excellent reputation it attracts clients not only from Larnaca District but also from Limassol, Nicosia and Famagusta Districts.
- Factory machinery & equipment is of the best quality and is regularly maintained every season to the highest standards.
- Flexible production is possible, factory can handle 12 different batches of olives separately, or the whole system may be combined to process olives in one batch.