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Highlights
- Select Harvests rebounds with net profit after a challenging FY23.
- Strong earnings before interest, tax, depreciation, and amortization recorded.
- No final dividend announced for FY24.
Australia-based almond producer Select Harvests (ASX:SHV) has reported a significant financial turnaround for the full year, achieving a net profit of $1.5 million. This comes after the company faced a considerable net loss of $114.7 million during FY23.
In its announcement, managing director David Surveyor emphasized the magnitude of this improvement, stating the business has undergone a "greater than $116 million turnaround" in comparison to the previous fiscal year. The results reflect the company’s progress in stabilizing operations and restoring financial health after a challenging period.
Select Harvests reported robust earnings before interest, tax, depreciation, and amortization (EBITDA), which reached $46 million. This figure underscores the recovery efforts, including improved operational efficiencies and favorable market conditions contributing to the company's profitability.
The return to a positive net profit is a testament to the adjustments and measures implemented by Select Harvests in the aftermath of FY23's losses. The company’s focus on streamlining its processes and leveraging opportunities in the almond market has started to yield tangible results.
Despite this positive turnaround, Select Harvests announced that it will not declare a final dividend for FY24. This decision likely reflects a cautious approach to maintaining financial stability and reinvesting in operations as the company continues its recovery trajectory.
Almond production remains a core focus for Select Harvests, and its results are closely tied to global demand, pricing, and crop yields. The company’s FY24 performance highlights its ability to navigate market challenges while working toward sustained profitability.
Select Harvests has positioned itself for future growth, and its latest results signal a promising shift in its financial outlook. While the decision to withhold a dividend might surprise some, it aligns with the company’s strategy to ensure long-term resilience.
This recovery marks an encouraging milestone for Select Harvests, demonstrating its resilience and potential to capitalize on improved market dynamics in the almond industry. The focus now shifts to how the company will leverage this recovery phase for sustained success in upcoming financial periods.
