Select Harvests (SHV) H2 2025 earnings summary

Executive summary

• Net profit after tax rose to AUD 31.8 million in FY2025, a $30.9 million increase year-over-year, driven by higher almond prices, operational improvements, and disciplined cost management.

• Operating cash flow surged to AUD 118.6 million, up AUD 109.1 million, supported by accelerated sales, improved logistics, and cash conversion.

• Net debt reduced by 51% to AUD 79.1 million, with gearing at 15.1% and a focus on further debt reduction over dividends.

• Strategic investments in processing, yield recovery, and logistics, along with transformation programs, are positioning for future growth.

• No final dividend declared for FY2025 as capital allocation prioritizes debt reduction and balance sheet strength.

Financial highlights

• Revenue increased 35.4% to AUD 398.3 million, with NPAT up $30.9 million to $31.8 million.

• EBITDA rose 81.5% to AUD 82.4 million, including a $5.8 million gain from water rebalancing.

• Average almond price achieved was AUD 10.18/kg, up 32.4% year-over-year.

• Crop size declined 15.7% to 24,903 metric tons due to lower crack-out rates and frost damage.

• Earnings per share increased to 22.44 cents.

Outlook and guidance

• Global almond demand is forecast to grow at a 5–7% CAGR, with supply constrained and positive macro conditions expected to support strong prices.

• Margin gains anticipated from investments in harvesting equipment, processing capacity, and kernel recovery.

• Cost headwinds expected in water, bees, fertilizer, and energy, with PMO initiatives targeting significant offsets.

• No crop size forecast for 2026 yet; operational and sales teams are prepared, with further updates at the AGM.

• Board will continue to balance debt reduction and future dividend payments.