Select Harvests Limited · ASX:SHV
Select Harvests — Investor Presentation (November 2024)
27 slides from Select Harvests's investor presentation, Nov 29, 2024
Slide 1: FY2024 Full Year Results Presentation
FY2024 Full Year Results Presentation 29 November 2024 David Surveyor – Managing Director and CEO Tim Bradfield – Interim CFO and Company Secretary 0
Slide 2: Webcast
WEBCAST This presentation deck accompanies a live webcast at 10.30am AEDT on Friday 29th November 2024 You can participate in the webcast by using the following link https://us02web.zoom.us/webinar/register/WN_QGCV5_-QSR6ICF8O4-TNaA You are advised to log on at least 15 minutes before 10.30am. If yo
Slide 3: Disclaimer and Basis of Preparation
DISCLAIMER AND BASIS OF PREPARATION This presentation is provided for information purposes only and has been prepared using information sourced by the company. The information contained in this presentation is not intended to be relied upon as advice to investors and does not take into account the i
Slide 4: Discussion Agenda
DISCUSSION AGENDA 1. Business Update 2. Financial Results 3. Strategy & Transformation 4. Outlook & Key Messages 5. Questions 3
Slide 5: Business Update
Business Update David Surveyor – Managing Director and CEO 4
Slide 6: Safety – Continued Focus
Safety – Continued Focus Total Recordable Injury Frequency Rate Key Areas of Improvement: Injuries per million hours worked • Continue to integrate behavioural safety through “Felt Leadership” to embed safe practices across all operations • Increased reporting of incidents as employee confidence imp
Slide 7: FY24 Financial Results
FY24 Financial Results • NPAT increases by $116m from prior year NPAT • 2024 crop - 29,527MT is a record crop with higher pricing at $7.69/kg $1.5m • Year-on-year reduction in total production costs – decrease of 3% based on 29,000MT crop volume • Capital Raise of $80m less transaction costs of $3.7
Slide 8: Key Results Drivers – Volume
Key Results Drivers – Volume 2024 Crop • The 2024 crop saw a return to more normal crop results • NSW 4 wet seasons in a row with rain above 550mm (2x the average) and therefore continues to disappoint with low yield and trees struggling • Innovation in shaking oscillation has improved almond collec
Slide 9: Key Results Drivers – Almond Price
Key Results Drivers – Almond Price Prices are Increasing • Prices heading back to where they were 4-5 years ago • Global demand growing as demonstrated by increased shipments (Aust and USA – 5.7% increase yoy). This is consuming available supply - US carry-in volumes low at 500m lbs on lower quality
Slide 10: Key Results Drivers – Total Production Cost
Key Results Drivers – Total Production Cost Production Costs Normalised • Total Cost of Production reducing as SHV initiatives take effect – YOY cost down – Normalised YOY cost down • SHV’s inflationary costs are running at 3.4% per annum, reflecting the Australian economy – Reduced labour ($3.2m) a
Slide 11: Financial Results
FINANCIAL RESULTS Tim Bradfield – Interim CFO and Company Secretary 10
Slide 12: Income Statement
Income Statement FY24 revenue significantly higher from increased 2024 crop volume $ millions Many Factors Contributed To Higher Earnings (except where indicated) FY2024 FY2023 Variance% Change • FY24 EBITDA of $46.0m (FY23 loss $117.1m) Almond volume (Mt) 29,527 19,771 9,756 49.3% – 2024 Crop fair
Slide 13: Group EBITDA: Sources of Change
Group EBITDA: Sources of Change Higher volume and price and lower growing costs were the main contributors to an improved FY24 result Millions AUD EBITDA is Impacted by: • Higher 2024 crop volume (29,527MT) • Improved global almond prices ($7.69/kg) • Lower growing costs incl labour, fertiliser and
Slide 14: Balance Sheet
Balance Sheet Capital raise completed. SHV balance sheet has remained in line with first half expectations $ millions FY2024 FY2023 Key Features of the Balance Sheet (except where indicated) Current assets ex. cash 312.4 203.4 • Inventory levels higher than FY23, due to a higher 2024 crop volume (49
Slide 15: Asset Valuations and Net Assets
Asset Valuations and Net Assets Asset valuations are 37% higher than book value at 30 September 2024 Net Asset Value vs Market Value Market Value Variances to Book $ Millions Value • Net Assets per share1 increases from $3.38/share to $4.63/share using market value • Book value of assets of $1,010.1
Slide 16: Cash Flows
Cash Flows Full year cashflow from operations was $21.3m positive $ millions (except where indicated) FY2024 FY2023 Main Cash Movements Customer receipts 285.6 212.7 Supplier & employee payments (249.7) (200.6) • Positive operating cash flows for the full year driven Tax refund 0.4 1.4 by: Net inter
Slide 17: Bank Facilities – Debt and Cash
Bank Facilities – Debt and Cash Net debt increase due to timing of capital expenditure and higher interest cost prior to capital raise offset FY24 Decrease in Net Debt Drivers of Net Debt: Millions, AUD • More volume of almonds available to sell at a higher price due to increased 2024 crop • Higher
Slide 18: Strategy & Transformation
STRATEGY & TRANSFORMATION 17
Slide 19: Strategy – four strategic priorities delivered across three horizons
Strategy – four strategic priorities delivered across three horizons Vision To be a leader in the supply of ‘better for you’ and ‘better for the planet’, plant-based foods Mission Deliver sustainable returns to our shareholders by marketing premium almond products to the world Horizons HORIZON 1 HOR
Slide 20: Strong progress in Sales, Processing and Horticulture
Strong progress in Sales, Processing and Horticulture. Strategic Priorities Safety & Enablers Substantially greater Leadership in processing Maximise returns from Innovate to drive Safety, efficient and almond volume scale and efficiency almond crops step-out growth scalable processes/ops F23 F24 F2
Slide 21: Farm Portfolio - 92% of farms are in "sweet spot" for age
Farm Portfolio - 92% of farms are in “sweet spot” for age Orchard profile Farming Approach • F2024 crop - Excellent SA & Vic, NSW disappointing • Yield Improvement strategy well underway. Benchmarking with internal and external farms confirms this approach • Drainage improved at Piangil and showing
Slide 22: Processing Capacity Increase – Project Optimus 10,000MT
Processing Capacity Increase – Project Optimus 10,000MT Phase 1: Upgrade provides uplift 1.1t/hr Shear Roller Speed Automation Line Balancing Automation (Hulling) Colour Sorter upgrade Phase 2: Upgrade provides uplift 1.1t/hr Balance shell decks Capacity upgrade decks 7-9 Kernel Conyevance capacity
Slide 23: PMO – Strategy Execution and Discipline
PMO – Strategy Execution and Discipline Execution momentum building with growing profit impact Execution Profit Impact The 2024 P&L Impact Millions AUD FY23 FY24 22
Slide 24: Outlook & Key Messages
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Slide 25: FY25 Outlook – Expecting positive year
FY25 Outlook – Expecting positive year • We experienced normal but quick Bloom conditions • Increased bee drops supported better pollination • Frost event impact approx 500MT (SHV frost fans prevented substantial SHV Crop issue) • Forecast is neutral weather pattern which is positive for almond grow
Slide 26: Key Messages
Key Messages • Significant shift in results • Capital raise has re-strengthened the balance sheet FY2024 • There has been substantive progress on transformation initiatives • Sales capturing price from increased Global demand Model Leverage • Horticulture maximises yield • Mid stream capacity expans
Slide 27: Questions
QUESTIONS 26
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