• Positive shift in profit result
• Capital raise has re-strengthened the balance sheet
• Substantive progress on transformation initiatives
• PMO tracking well

Select Harvests Ltd reported its FY2024 AGM results, highlighting a positive shift in profit, with NPAT increasing by $116 million from the prior year. The company achieved a record almond crop of 29,527 MT, with higher pricing at $7.69/kg. Total production costs decreased by 3% despite inflationary pressures, driven by reduced labor, fertilizer, and water costs. The company's operating cash flow increased to $21.3 million, up from $3.3 million in the previous year, due to increased sales velocity and a 31% year-on-year increase in sales volume. Select Harvests completed a $76.3 million capital raise, with $58.9 million raised in September and $17.4 million in October, which was used to repay $71.3 million in debt and invest $5 million in increased processing capacity. The company's net debt stood at $162.3 million, with gearing at 33.8% (29% post the completion of the capital raise). The company made substantive progress on its transformation initiatives, including improvements in safety, logistics, procurement, and data and analytics. It also increased its processing capacity by 10,000 MT in FY2024 and is on track for a further 10,000 MT increase in FY2025 through Project Optimus. The company's PMO (Project Management Office) initiatives are delivering targeted results, with a growing profit impact. Select Harvests is focused on growing organically, capturing price increases, maximizing yields, and profitably adding third-party supply.

Select Harvests is forecasting a FY2025 almond crop size of 27,500-29,000 MT, with global almond demand remaining strong and prices increasing above FY2024 levels to an expected $9.20/kg. The company is focused on cost management, with costs expected to be ostensibly flat.

Select Harvests is focused on growing organically by capturing price increases, maximizing yields, and profitably adding third-party supply. The company is also progressing its mid-stream capacity expansion through Project Optimus and expects continued upside from its PMO initiatives.