Managing Director, David Surveyor, announces that "Select Harvests recorded Net Profit After Tax (NPAT) of $1.5 million for FY2024. This profit is greater than a $116 million turnaround from FY2023 and shows that the business is returning to normal operations.
The Company is now well-positioned to go forward and the previously communicated delays in cash receipts of $56 million caused by logistics issues are resolved. All outstanding FY2024 documentation has been delivered to customers, containers are shipped, with $51 million of cash collected. The balance is on normal terms with customers and is expected to be receipted before 31 December 2024."
The water rebalancing program is being delivered on the plan. A $12.5 million gain was made on the sale of water in FY2024 of which $6.7 million was recognized in FY2024. The remaining $5.8 million did not meet the Company's revenue recognition policy in the period and will be recognized in FY2025. The Company is using the cash generated from these sales to acquire water more closely aligned with the location of its farming operations.
Select Harvests has contracted a record volume of 32,334 MT, 91% of the SHV 2024 crop, with a structured program designed to drive accelerated sales, which was achieved despite logistical challenges. The Company continues to see strong demand from China and India. With an improved supply and demand dynamic, prices have been increasing in recent months and these increases are continuing.
The Company has controlled operating costs and, despite increases in lease cost recognition and inflation, total production costs per kilogram are lower than last year. A $6.6 million impairment has been recognized on Select Harvests' Yilgah (leased) orchard following four consecutive years of wet conditions and yield underperformance.
FY2024 EBITDA of $46.0 million is a substantial improvement on the FY2023 EBITDA loss of $117.1 million. Pleasingly, operating cash flow improved to $21.3 million from $3.3 million in FY2023, and net debt improved to $162.3 million. During FY2024, the Company strategically increased the capacity of the Carina West Processing Facility (CWPF), from 30,000 to 40,000 MT. This has led to lower unit costs of production in FY2024 and a total of 40,047MT was processed during FY2024.
In addition, Select Harvests' Project Management Office (PMO) completed 27 projects with a profit of $32.2 million, with this gain offset against a $1 million provision for the logistics issue and the inflationary pressures felt by all Australian businesses. The net gain is $15 million. Moving forward, the Company is implementing plans to mitigate risks in the logistics component of its operations by adding a new service provider and reducing dependence on external suppliers by increasing its internal logistics capability.
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For more information:
David Surveyor
Select Harvests
Tel: +61 03 9474 3544
Email: [email protected]
www.selectharvests.com.au