Select Harvests (SHV) H1 2026 earnings summary

Executive summary

• Underlying NPAT for HY2026 rose 32.9% year-over-year to $29.1 million, with reported NPAT at $26.6 million.

• Interim fully franked dividend of 3.5 cents per share declared, with a share buy-back of up to 10% of issued capital announced.

• Profitability improved despite inflationary and almond-specific cost pressures, reflecting a robust turnaround over three years.

• Strategic investments in horticulture, processing, and safety culture have driven operational improvements.

• Ambition set for 65,000MT almond volume and $700m revenue by 2030.

Financial highlights

• Revenue and profit growth driven by improved yields, higher market prices, and increased external grower volumes, with 2026 crop forecast at 29,500MT and price at $10.21/kg.

• Underlying EBIT up 27.2% to $45.4m; EBITDA (pre-AASB 16) at $59.0m, slightly down due to higher production costs and lower hull sales.

• Net debt at $182.6 million, with a net debt/equity ratio of 32.9% and $300 million in facilities available.

• Production costs increased due to inflation, higher water and pollination costs, and one-off wet harvest expenses.

• External grower volumes doubled to 15,400MT, contributing significant profit value.

Outlook and guidance

• Full year underlying and reported NPAT expected to show another substantial profit increase, with 2H earnings to benefit from external grower volumes and value-added sales.

• 2026 almond crop forecast at 29,500MT (range: 28,000–31,000MT), up 18% from FY2025.

• Board sets growth ambition of 65,000MT and $700m revenue by 2030, leveraging both internal and external grower expansion.

• Cost base expected to grow by CPI in 2027, with $7m wet harvest costs not expected to recur.

• Operating cash flows anticipated to improve in the second half as inventory is sold.