• Quality checking on the blanched almond line (Source: Select Harvests)
    Quality checking on the blanched almond line (Source: Select Harvests)
Close×

Select Harvests says its $80 million fully underwritten capital raise would be used to pay down debt, provide facility headroom, and fund capital investment to increase processing capability.

A recent operational review was the catalyst for Select Harvests’ (SHV) growth plans, looking at near-term organic growth opportunities to increase yield by up to 15 per cent from FY26.

The company said it could deliver a 10,000 MT capacity increase to 50,000 MT. It expects the FY24 crop to be roughly 29,500 MT. In April, SHV told the market the crop was going to be lower than forecast but still one of the largest crops ever produced and reducing debt was its priority.

Forecast FY24 snapshot

  • underlying EBIT: $17-19m; 
  • underlying NPAT: $1.5-3m;
  • final almond price: $7.70-$7.75 per kg; and
  • net debt: $230-$245m

SHV said the forecast net debt was impacted by temporary cash collection delays, driven by freight issues and the record crop volume.

SHV CEO, David Surveyor, said a lower than forecast output from California is improving the price.

“While there is much more to do, the strategic initiatives and cost reductions resulting from the company’s initiatives are expected to deliver a significantly better financial result than FY23,” Surveyor said.

The capital raise will allocate $71.6 million to pay down debt and provide facility headroom, $5 million to capital investment, and $3.4 million on costs.

Packaging News

Pact Group will delist from the ASX on Wednesday 16 July, the move being the culmination of executive chair and owner Raphael Geminder’s near two-year bid to take full control of the company.

Packaging is at the heart of Suntory’s bold new chapter in Australia, marked by the opening of its $400 million beverage production facility in Swanbank, Queensland – a site purpose-built to deliver high-speed, high-efficiency bottling, canning and kegging through world-class packaging technology and sustainable design.

Ego Pharmaceuticals has unveiled a bold new chapter in its commitment to local manufacturing, announcing a $156 million, decade-long investment to expand its Victorian operations.