On 29 November 2018, the chairman of Select Harvests Limited (ASX: SHV) Michael Iwaniw, highlights the performance of the company in FY2018. In the initial phase of the annual general meeting, he introduces the board of members to the investors. The list is as follows: Michael Iwaniw who is the chairman of the company since November 2011. Michael Carroll is the non-executive director of the company since March 2009. Fred Grimwade wade is the non-executive director of the company since July 2010. Nicki Anderson is the non-executive director of the company since January 2016. Fiona Bennett is the non-executive director of the company since July 2017 and Paul Thompson is the non-executive director of the company since July 2012. Michael Carroll and Fred Grimwade are standing for the election.
Further, as the meeting proceeds the chairman highlights the financial overview of the company. There is an increase in the almond volume by 11.3%. This year the total almond volume is 15,799 MT. There was also an increase in the EBITDA by 62.3%. The reason for EBITDA is $51.7 million was due to the higher volume of almonds produced and pricing, at a lower cost. As a result of higher earnings and working capital management, the company was able to generate $18.3 million. There was also an increase in the net profit after tax by 120.3%. The net profit after tax by the end of the year was $20.4 million where the major credit goes to the almond’s division. The balance sheet of the company gains its strength as a result of a decrease in debt by $75.1 million. The EPS of the company increased by 84.1%.
He also highlights the orchard age profile. Out of the total acres of land which is under cultivation, there are around 79% of land which generates cash for the company. The total land distribution is as follows: 36% of the planted orchards are still immature. 56% of the plantation is a source of high cash generation at low capital expenditure and the remaining 8% of planted orchards is in post-economic maturity status. Among its peer group, the yield performance of the company is strong.
The company expects that by the end of FY2027, the almond volume will to grow by 42% and also highlights that the branded product of SHV is distributed in 13 countries in Asia. In the transition period of the company, its food division and income from other activities of the company will be less than the corporate and financing cost of the company. This financial year there is a loss of $1.5 million in the transition period.
Further, corporate highlights and its asset valuation was provided to the investors. Company’s brand and goodwill are worth $28.9 million. The asset valuation from its almond’s division is worth $171.6 million. Highlights about the safety, environment, and culture of SHV was also shared. Since morning the market price is up by 1.259% which is equivalent to A$5.630 million with the market capitalization of $530.81 million with the PE ratio of 23.97x.
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