Select Harvests Limited – 2024 Annual General Meeting Summary
Website: Select Harvests
Overall Tone
Select Harvests Limited (SHV) reported a significant turnaround in financial performance, achieving a positive net profit after tax (NPAT) of $1.5 million, compared to a substantial loss in the previous year. The company’s record almond crop and improving pricing environment contributed to the recovery. Operational efficiencies and strategic transformation initiatives continue to strengthen the company’s future outlook.
Financial Results Summary
| Metric | FY24 | FY23 | YoY Change |
|---|---|---|---|
| Revenue | $337M | – | – |
| Net Profit After Tax (NPAT) | $1.5M | -$114.5M | +116M |
| Operating Cash Flow | $21.3M | $3.3M | +545% |
| Total Almond Crop | 29,527MT | 19,771MT | +49.3% |
| Average Almond Price | $7.69/kg | – | – |
| Net Debt | $162.3M | – | – |
| Gearing Ratio | 33.8% | 29% (post-capital raise) | – |
Positive Surprises & Potential Concerns
- Positive: Record almond crop of 29,527MT, exceeding expectations and improving margins.
- Positive: Debt reduction of $71.3M, significantly strengthening the balance sheet.
- Concern: Ongoing challenges in NSW operations, with persistent wet seasons affecting yields.
- Concern: Inflationary cost pressures, particularly in labor, fertilizer, and water management.
Outlook Commentary
- Strong global almond demand expected to drive further price increases, with forecasts around $9.20/kg.
- Cost optimization measures to continue, focusing on labor, procurement, and automation initiatives.
- Investment in processing capacity (Project Optimus) to enhance efficiency and increase third-party processing volumes.
Strategic Transformation Initiatives
- Yield and Quality Improvements: Investments in better pollination, harvest techniques, and water management.
- Cost Management: Reducing operational expenses while maintaining productivity.
- Market Expansion: Increased focus on China and India, capitalizing on premium product demand.
- Processing Expansion: Project Optimus to increase capacity by 10,000MT by 2026.
Result vs. Market Expectations
- Stronger-than-expected recovery, with NPAT turning positive after a difficult prior year.
- Higher-than-expected almond prices, driven by lower US stockpiles and strong global demand.
- Operational improvements progressing well, with cost reductions exceeding initial targets.
Market Positioning
- Share price leading into AGM showed positive momentum, reflecting renewed investor confidence.
- Trading near mid-range of its 52-week performance, with further upside potential tied to higher almond pricing.
- Strategic focus on cost control and processing efficiency, positioning SHV as a low-cost, high-quality almond producer.
Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.
Quick Take: 2024AGM ASX:SHV