Select Harvests (SHV) H2 2024 earnings summary

Executive summary

• Net profit after tax of AUD 1.5 million, a turnaround from a prior year net loss of AUD 114.7 million, driven by record almond crop volume, higher prices, cost reductions, and transformation initiatives.

• Revenue increased 64% year-over-year to AUD 337 million, supported by a record crop of 29,527 tonnes and higher almond prices.

• Capital raise of AUD 76.3 million (AUD 58.9 million in September, AUD 17.4 million in October) completed, reducing net debt to AUD 162.3 million and gearing to 29% post-raise.

• Transformation program and project management office (PMO) initiatives delivered significant profit and efficiency gains.

Financial highlights

• EBITDA of AUD 46 million, a year-on-year turnaround of over AUD 160 million.

• Record almond crop volume of 29,527MT, up 49.3% year-over-year.

• Average almond price increased to AUD 7.69/kg from AUD 6.42/kg in FY23.

• Operating cash flow improved to AUD 21.3 million, with a net inflow from working capital of AUD 10.9 million.

• Underlying EBIT was AUD 17.1 million, up AUD 136.3 million year-over-year.

Outlook and guidance

• FY25 outlook is positive, with consensus crop around 30,500 tonnes and strong global demand expected to support higher prices.

• Almond production costs expected to remain flat or increase by at most 1% in FY25.

• Almond prices have rebounded to around AUD 8.30/kg, with further upside anticipated.

• SHV focusing on cost control and leveraging transformation initiatives for further margin improvement.

• Project Optimus to add 10,000 tonnes of processing capacity by 2026, with some gains expected earlier.