Select Harvests’ Revenue Climbs 54% as 2025 Almond Crop Forecast Hits 25,250 Tonnes

• Half-year net profit of $28.7 million versus prior loss
• Revenue up 54.1% to $104.5 million on almond price gains
• 2025 almond crop forecast at 24,000–26,500 metric tonnes
• Processing capacity expansion underway at Carina West
• Renewal of $240 million syndicated debt facility with major banks

Profit Turnaround Amid Rising Almond Prices

Select Harvests Limited, Australia's second largest almond producer, has posted a striking financial turnaround for the half-year ended 31 March 2025. The company reported a net profit after tax of $28.7 million, a significant improvement from a net loss of $2.4 million in the prior corresponding period. This result was underpinned by a 54.1% increase in revenue to $104.5 million, reflecting stronger global almond prices and improved operational efficiencies.

Crop Forecast and Operational Progress

The company forecasts its 2025 almond crop to range between 24,000 and 26,500 metric tonnes, with a midpoint of 25,250 tonnes used for accounting purposes. The average selling price is expected to be $10.35 per kilogram, supported by positive quality metrics and favourable market conditions. Select Harvests has processed approximately 35% of the crop by the reporting date, focusing initially on the Nonpareil variety.

Operationally, Select Harvests is advancing its strategy to increase almond volumes and processing efficiency. The Carina West Processing Facility is undergoing a Phase 2 expansion to boost capacity from 40,000 to 50,000 metric tonnes, representing a $6 million investment. The company is also enhancing cost efficiencies across farming and processing, including better fertiliser use, labour optimisation, and packaging cost reductions.

Strategic Market Expansion and Hedging

In line with its growth strategy, Select Harvests has broadened its customer base, particularly in China, India, the Middle East, and Southeast Asia, diversifying its sales channels. As of mid-May 2025, 42% of the 2025 crop volume has been contracted. The company has hedged 86% of its crop against currency risk at an average AUD/USD rate of 64.8 cents, providing some protection against exchange rate volatility.

Financial Position and Debt Refinancing

Following a capital raise in late 2024, Select Harvests has reduced its debt levels compared to the previous year and remains compliant with all banking covenants. Post-period, the company successfully renewed its $240 million syndicated debt facility with NAB, Rabobank, and Commonwealth Bank of Australia. The new facility includes tranches expiring in 2028 and 2030, with covenant tests scheduled bi-annually and annually.

Safety, ESG, and Accounting Updates

The company continues to prioritise safety and sustainability, reporting a stable Total Recordable Injury Frequency Rate and zero environmental incidents during the period. Notably, Select Harvests disclosed a $3.5 million provision for historical superannuation underpayments, reflecting a commitment to regulatory compliance. The half-year financials also include restatements correcting prior revenue recognition errors related to external grower almonds.

Bottom Line?

With a robust crop forecast and strengthened balance sheet, Select Harvests is poised to capitalise on favourable almond market dynamics, though agricultural and geopolitical risks remain watchpoints.

Questions in the middle?

• How will ongoing geopolitical tensions and tariffs impact Select Harvests’ export markets?
• What is the potential impact of the superannuation underpayment provision on future cash flows?
• Can the company sustain its processing capacity expansion and operational efficiencies amid variable crop yields?