Corporate: Almonds have made Select Harvests a $20 million HY profit
While Australia’s retail sector has struggled in recent months, this has not hindered the almond industry. Additionally, its overseas markets in Europe and China have held their ground.
Select Harvests has also been helped by good growing and harvest conditions conditions and its investment in new orchard technologies.
In 2019, it anticipates producing 20,750 million tonnes of almonds, up 32 per cent from the year prior. 50 per cent of this has been completed already.
A 6 per cent increase in almond prices (from $8.05/kg to $8.50/kg) also helped. This meant it was able to offset a significant increase in the price of water – 39 per cent according to the company.
Managing director Paul Thompson said he was “very pleased that our ongoing focus on improved horticultural practices and targeted investments has led to an improved outcome”.
He also predicted the full year result would be just as positive, noting that 80 per cent of the crop had been contracted for sale at the higher prices and was hedged to the USD at favourable rates.
“Looking forward our tree health is excellent, we have more volume coming on stream from our greenfield orchards at the same time among pricing remains firm,” he said.
“We will continue to focus on bringing new products to market in the Food Division and further expand our industrial customer base. We continue to look for ways to grow and maximise company returns.”
Shares only jumped 1 cent at market open but are now up 30 per cent since mid-October.