Select Harvests Posts $31.8m NPAT, Cuts Net Debt by Half in FY2025
Select Harvests Limited delivered a robust FY2025 with net profit soaring to $31.8 million and net debt slashed by over 50%, despite a smaller almond crop. Strategic investments in processing and sales underpin a confident outlook.
- Revenue up 35.3% to A$398.3 million
- Net profit after tax surges 3445.8% to A$31.8 million
- Net debt reduced by 51.3% to A$79.1 million
- Almond crop volume down 15.7% but price up 32.4%
- Processing capacity expanded to 50,000MT at Carina West
Strong Financial Turnaround
Select Harvests Limited has reported a striking turnaround in its financial performance for the year ended 30 September 2025. The company’s revenue climbed 35.3% to A$398.3 million, driven largely by a significant increase in almond prices and operational efficiencies. Net profit after tax (NPAT) skyrocketed by 3445.8% to A$31.8 million, a remarkable leap from the prior year’s modest $0.9 million.
Despite a 15.7% decline in almond crop volume to 24,903 metric tonnes, the company benefited from a 32.4% rise in almond prices to A$10.18 per kilogram. This price uplift, combined with disciplined cost management and enhanced sales execution, underpinned the improved profitability.
Debt Reduction and Balance Sheet Strength
One of the standout achievements for Select Harvests in FY2025 was the halving of net debt to A$79.1 million, reducing the gearing ratio to a conservative 15.1%. This was supported by strong operating cash flows of A$118.6 million, a dramatic improvement from the previous year’s A$9.5 million. The company’s refinancing efforts secured favorable terms with a syndicate of banks, extending debt maturity profiles and lowering interest costs.
Operational Advances and Strategic Focus
Operationally, Select Harvests expanded its Carina West Processing Facility capacity to 50,000 metric tonnes, enabling more efficient handling of both company-grown and external almonds. Innovations such as the kernel recovery pilot project promise to boost yields by approximately 3% in the coming season. The company also reported a 27% reduction in customer complaints, reflecting improved product quality and service.
Strategically, the company concentrated on three pillars, increasing almond volumes, leading in processing efficiency, and maximizing crop returns. While the 2025 crop was smaller, investments in new harvesting equipment and horticultural improvements position the company well for future growth. External grower volumes declined by 30.3%, but Select Harvests has added resources to manage and expand these relationships.
Market Dynamics and Outlook
Global almond market conditions remain favorable, with demand growth from key markets including China, India, and Türkiye. The company capitalized on tariff dynamics and geopolitical shifts to secure premium pricing and expand its customer base. Almond paste and other value-added products saw strong sales growth, aligning with rising global demand for plant-based foods.
Looking ahead, Select Harvests anticipates higher almond prices in FY2026, supported by declining US almond acreage and supply constraints in California. The company plans to continue investing in horticulture, processing capacity, and sales velocity while managing rising input costs such as water and bees.
Governance, Sustainability, and Culture
The company maintained a strong focus on safety, achieving a significant improvement in its Total Recordable Injury Frequency Rate (TRIFR) to 5.5. Sustainability initiatives advanced with expanded recycling programs, water efficiency measures, and preparations for mandatory climate-related disclosures. Employee engagement and alignment scores improved, reflecting a positive cultural transformation.
Financial statements were audited by PricewaterhouseCoopers with an unqualified opinion, reinforcing confidence in the reported results.
Bottom Line?
With a strengthened balance sheet and strategic investments in place, Select Harvests is poised to capitalize on favorable market trends, though rising input costs and climate risks warrant close monitoring.
Questions in the middle?
- Can Select Harvests sustain profit growth amid a smaller almond crop?
- How will rising costs for water, bees, and fertiliser impact margins in FY2026?
- What progress will the kernel recovery and processing expansion projects deliver next year?
