Select Harvests Limited (ASX:SHV) Reports FY2024 Full-Year Results
Fiscal Year 2024 Financial Performance
Select Harvests Limited reported a robust financial turnaround for the year ending 30 September 2024, achieving a Net Profit After Tax (NPAT) of $1.5 million compared to a loss of $114.7 million in FY2023. The company recorded an EBITDA of $46.0 million, a significant improvement from the previous year’s EBITDA loss of $117.1 million.
The almond crop for the year reached 29,527 MT, up 49.3% from FY2023’s 19,771 MT, reflecting strong operational achievements. External grower contributions surged dramatically to 10,520 MT, marking a 208.1% increase year-on-year. The average almond price also rose by 19.6% to A$7.69/kg.
Operational Highlights and Strategic Developments
Select Harvests’ operating cash flow saw a striking improvement to $21.3 million from $3.3 million in FY2023. The company effectively reduced its net debt to $162.3 million from $190.2 million. However, the Board announced that no final dividend will be paid for FY2024.
David Surveyor, Managing Director & CEO, highlighted: “This profit is greater than a $116 million turnaround from FY2023 and shows that the business is returning to normal operations.” He noted the resolution of previous cash receipt delays and the progress in the water rebalancing program, which resulted in a $12.5 million gain on water sales.
The processing capacity of the Carina West Processing Facility increased from 30,000 to 40,000 MT during the year, contributing to lower production costs. The company successfully processed 40,047 MT in FY2024.
Future Outlook
Looking ahead, the macro environment for almonds appears favourable. The company remains focused on improving crop yields, enhancing processing capabilities, and strengthening market sales. The USDA’s objective forecast positions future almond crop sizes favorably, and Select Harvests expects to capitalize on the growing demand, particularly from China and India.
David Surveyor concluded, “We continue our journey towards world-class safety performance while seeking to maximise our earnings going forward.” The company is working to improve its earnings potential as part of a comprehensive strategy for future growth.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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