Select Harvests (SHV) – Prices are trumps
June 13, 2025
Select Harvests engages in the growing, processing, packaging, and selling of almonds and its by-products in Australia. The company exports its products to Asia, Europe, and the Middle East, and also owns the Renshaw and Alling Farms brand names. The company was incorporated in 1969 and is headquartered in Richmond, Australia.
Select Harvest’s first-half FY25 operating earnings (EBITDA) more than doubled to $61 million, driven by rising almond prices, to set the company up for strong full-year result. A surge in global almond prices has been the trump card, and Select Harvest reiterated FY25 guidance of $10.35 a kilogram, a 35% jump from the$7.69 price achieved in FY24.
Overall, the result was significantly ahead of our expectations at the EBITDA line, and also below that line, due to timing differences and AASB 141 accounting requirements for agricultural assets. The result did, however, contain yet another mea culpa due to the underpayment of superannuation entitlements and the overstatement of revenues in the FY24 accounts.
Our target price increased to $5.65 from $5.60 and we maintain a Buy recommendation on the stock.
Insights that count
Discover the best opportunities to outperform the market. Our research team dig deep into the market, company and stock data to bring you insights others might overlook.
ResMed (RMD) – Out of the Matrix
ResMed designs and manufactures medical devices and cloud-based software applications for the sleep apnoea and respiratory care markets.
Orora (ORA) – Bottled up
Orora designs and manufactures aluminium cans and glass bottles, principally for beer, wine and spirits, in Australia, New Zealand, the US and Europe. Orora was incorporated in 1949 and is headquartered in Hawthorn in Melbourne.
Virgin Australia Holdings (VGN) – Keeping it simple
Virgin Australia is the nation’s No.2 airline and offers domestic air services under its own brand and overseas travel via its international partners, which include Qatar Airways, Singapore Airlines, United Airlines, Air Canada, Air New Zealand, Hawaiian Airlines, and All Nippon Airways, and owns the Velocity loyalty business.
.webp)