Select Harvests Limited announces a Net Loss after Tax of $96.2 million for the first six months of the 2023 Financial Year. The result has been materially impacted by La Nina weather patterns affecting the 2022 and 2023 crops and the resultant write-off of goodwill.
Managing Director, David Surveyor: "Climatic conditions have impacted the 2023 crop with cold and wet weather resulting in unusual growing patterns and lower yields. Crop performance is understood to be consistent with the broader Australian almond industry."
Consistent with the requirements of Accounting Standard AASB 141 Agriculture, the harvested portion of the 2023 crop has been valued at the estimated fair value less costs to sell. Due to the 2023 crop volume forecast decreasing to 17,500MT, the net realisable value of the crop is less than the total costs to sell the crop. As a result, the full loss of the 2023 crop has been reflected in the 1H FY2023 accounts.
The recognition of the forecast full year loss has a material impact on the 1H FY2023 financial result. The 2H FY2023 result will not reflect any impact of the 2023 crop result (assuming there are no changes to the 2023 crop fair value assumptions) and therefore is forecast to show a small loss with the recognition of six months of corporate and finance costs partially offset by non-crop related income.
Overview of 1H FY 2023 Half Year financial results
- 1H FY 2023 Loss After Tax of $96.2 million (1H FY 2022 NPAT of $2.0 million)
- Underlying EBITDA Loss of $55.6 million (1H FY 2022 Continuing Operations EBITDA of $17.7 million)
- Reported EBITDA Loss of $117.4 million (1H FY 2022 Continuing Operations EBITDA of $17.7 million)
- 2023 forecast almond crop of 17,500 MT (FY 2022 Reported 29,000 MT) — Down 39.7%
- Almond price estimate of A$7.45/kg (FY 2022 A$6.80/kg) — Up 9.6%
- 1H FY 2023 Operating Cashflow of negative $26.7 million (1H FY 2022 positive $15.3 million) — Down $42.0 million
- Net Debt (excl. finance lease liabilities)/Equity ratio at 31 March 2023 is 44.0% (31 March 2022 25.9%)
- Loss per Share (EPS) of 79.5 cents per share (1H FY 2022 Continuing Operations Earnings per Share 3.1 cps)
The 2023 crop harvest has now been completed. Despite the unfavourable growing conditions, the quality of the crop has improved compared to last year. Due to a drier 2023 harvest period the prevalence of mould has decreased from 2022 crop levels.
Inshell levels are lower, however kernel sizes are larger. Insect damage is higher (a function of the lower crop size) however recent investment in state-of-the-art sorters will lead to the final product quality profile improving from last year.
For more information:
Select Harvests Limited
Botanicca Corporate Park
570-588 Swan Street
Richmond VIC 3121 Australia
Tel.: +61 03 9474 3544