Select Harvests (ASX: SHV) has released its latest Select Harvests investor presentation, confirming a marked improvement in performance for Select Harvests FY2025. The almond producer delivered higher pricing, lifted profitability, and a sharp reduction in net debt, supported by tighter operations and favourable global market trends.
The FY2025 briefing outlines a business returning to stability after several challenging seasons. Higher almond prices, stronger sales execution and improved processing efficiency helped drive a substantial lift in margins and cash generation. Despite continued cost pressures and a smaller local crop, the Company’s strategic position in Australia’s almond sector has strengthened.
The recovery across Select Harvests results for 2025 comes at a time when global almond supply remains constrained, adding further support to the Company’s growth pathways.
Key Financial Results Strengthen Balance Sheet
Select Harvests FY2025 delivered solid top-line and earnings growth. Net profit after tax rose to $31.8 million, an improvement of $30.9 million from the previous year. Revenue increased to $398.3 million, helped by a 32.4 per cent rise in the Company’s average almond price to $10.18 per kilogram.
Higher almond prices and improved margins played a key role in Select Harvests’ FY2025 turnaround
Highlights from the Select Harvests investor presentation include:
- NPAT of $31.8 million
- Almond price of $10.18/kg
- Operating cash flow of $118.6 million
- $83.2 million reduction in net debt
- EBITDA of $82.4 million, up 81.5 per cent
- ROCE improved to 6.8 per cent
Net debt fell to $79.1 million, with gearing now sitting at 15.1 per cent. The refinancing of banking facilities also supported lower funding costs and increased liquidity. Management attributed the stronger result to better sales velocity, quicker cash conversion and ongoing discipline across operational costs.
Operational and Crop Performance Overview
The Select Harvests FY2025 crop reached 24,903 metric tonnes, reflecting lower crack-out rates and seasonal conditions. Frost damage reduced output, though the impact was contained through the Company’s 310-fan frost-protection system. Third-party processing volumes were also down 30 per cent due to a lower national crop.
Although production volumes fell, Select Harvests secured a price premium against global benchmarks. The Company expanded direct-to-customer channels and refined its grading mix to improve overall returns.
Key operational indicators included:
- 27% reduction in customer complaints
- Lower Australian crop affecting processing throughput
- Continued gains from Project Optimus
- Stable production costs despite inflationary pressure
Strategic and Economic Advantages
The Select Harvests investor presentation emphasised strong medium-term almond fundamentals. Global demand continues to grow between 5 and 7 per cent each year, driven by consumer trends favouring healthier snacks and plant-based foods. Reduced global inventories and a smaller Californian crop have supported firmer pricing.
Management noted that Australia maintains a clear cost advantage over the United States. California’s almond production fell 8 per cent year-on-year, and new plantings have slowed as growers face higher water costs. With new trees taking six to seven years to reach maturity, global supply is expected to remain tight.
Select Harvests CEO David Surveyor
Select Harvests CEO David Surveyor said the Company is “well placed to capture sustained pricing benefits through FY2026,” highlighting strong sales channels and ongoing operational improvements.
“Our transformation initiatives continue to deliver improvements in farming, processing and sales,” he said. “The business is generating stronger cash flow and maintaining cost discipline.”
Advancements in Processing, Technology, and ESG
Investment across processing, equipment and sustainability also featured strongly in the FY2025 update. Project Optimus Phase 2 continued to enhance throughput at the Carina West facility, while new harvest shakers improved crop quality and labour efficiency.
A kernel recovery line is expected to lift yields by around 3 per cent, reducing waste and maximising the value of each tonne produced. These upgrades position Select Harvests to grow third-party processing volumes as national production normalises.
Market Context and Industry Outlook
Tightening global supply continues to support almond pricing heading into FY2026. Californian acreage appears to have peaked, with lower crop receipts and quality challenges following rain and insect pressure.
Tightening global supply and rising demand continue to support almond pricing into FY2026
Demand remains resilient across food manufacturing, snacking, dairy alternatives and export markets. Industry forecasts point to further growth as health-focused foods expand their share of consumer spending.
Select Harvests expects pricing to remain favourable through the year ahead. Higher horticultural yields, improved harvesting equipment and ongoing sales optimisation are expected to support margins.
Investor Outlook and Share Price Performance
Investor interest strengthened following the release of the Select Harvests results for 2025. Shares last traded at $4.150, up 3.75%, reflecting a daily rise of $0.150. Trading volume reached 3,274,700 shares, and the price moved within a tight $4.140 to $4.150 range across the session.
This places Select Harvests’ market capitalisation at $568.43 million. The improved balance sheet, lower debt position and stronger cashflow profile have contributed to a firmer outlook among analysts and investors.
The Select Harvests investor presentation highlighted ongoing discipline across capital allocation, with a focus on strengthening financial resilience and maintaining operational efficiency.
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Conclusion
The Select Harvests FY2025 update marks a decisive step forward for the Company. Higher prices, improved cash flow and significant debt reduction have helped stabilise performance and strengthen strategic positioning. With supportive global conditions and continued investment across farming and processing, Select Harvests enters FY2026 with stronger foundations and a clearer growth path.
