Almond producer Select Harvests’ profit down 68 per cent
A litany of “uncontrolled events” led to a challenging year for the ASX-listed almond producer.
Almond producer Select Harvests’ profit has dived more than 68 per cent after a year plagued by flooding, a major biosecurity breach and historically low global almond prices.
Australia’s second largest almond producer and marketer has posted a net profit after tax of $4.8 million for its 2022 year ending September 30, down from $15.1 million in the previous 12 month period.
The ASX-listed company described 2022 as a “challenging year” dominated by a litany of uncontrollable events that impacted its bottom line. These included flooding, prolonged periods of wet weather that coincided with harvest and higher interest costs due to increased rates.
A fire also broke out at Select Harvests’ Carina West processing plant in north west Victoria in December last year, causing minor building damage.
Meanwhile global almond prices are at historical lows due to another large crop out California last year.
“Lower than average global almond market pricing, adverse weather events, biosecurity impacts on bee supply and a fire at the Carina West Processing facility. These have all led to operational challenges that have had to be carefully managed to minimise the impact on the FY2022 result,” the company said in a statement to the Australian Securities Exchange on Tuesday.
Sales were down almost 13 per cent to $199.7 million, while earnings before interest, tax, depreciation and amortisation were down 32 per cent to $40 million.
Despite the weather, California’s large almond inventory pushing down global prices and a varroa mite incursion threatening Australia’s bees, a record crop of 29,000MT was harvested.
The 2022 harvest was also spared higher input costs inflicted on farming operations across the globe by a decision to lock in supplies early. This will however be felt as the 2023 crop progresses.
Water costs for this year’s crop were 33 per cent lower than the previous year due to the price of temporary water entitlement pricing, and Select Harvests’ managing director Paul Thompson has predicted a saving of up to $3 million in water costs next year based on current water pricing and full water catchments.
A final dividend of 2 cents per share will be paid.
Select Harvests’ share price fell 4.6 per cent following Tuesday’s announcement.
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