Select Harvests
(ASX: SHV)Share Price and News
About Select Harvests
Select Harvests operates a fully integrated almond business, covering orchard management, processing, branded food production, and export. It owns or leases over 9,300 hectares of almond orchards across Victoria, New South Wales, and South Australia. The company processes nuts at its state-of-the-art Carina West facility near Robinvale, which can handle over 40,000 tonnes during peak season.
Its brands, including Renshaw and Allinga Farms, supply almonds to more than 600 customers globally, servicing retail, food manufacturing, and health-food chains. Select Harvests employs over 500 people year-round, with workforce numbers peaking during harvest season.
SHV Company History
Founded in 1978 (originally as Defender Limited), Select Harvests evolved from a pure almond grower into a fully integrated agri-food business. As Australian almond acreage expanded—from around 9,000 acres in 1999 to over 60,000 by 2007—SHV grew accordingly, acquiring orchards across Victoria, New South Wales, and South Australia.
In 2008, the company invested in its Carina West processing plant and later added Thomastown to support branded nut production. Over time, SHV divested several consumer-facing brands—such as Lucky and Sunsol in 2021—while retaining its core industrial almond portfolio. The 2023 capital raise and logistics upgrade marked key milestones in its continued transformation.
Future Outlook of Select Harvests (ASX: SHV)
FY24 delivered a strong turnaround. SHV posted an underlying EBIT of $17.1 million and NPAT of $1.5 million, reversing the significant loss reported in FY23. Contributing factors included a 49% increase in crop volume, higher global almond prices, and operational improvements in both horticulture and processing.
During FY24, the company raised $80 million, using $71.3 million to reduce net debt and allocating $5 million toward expanding capacity at Carina West. Net debt fell to $162 million, down from $190 million in 2023. With a restructured balance sheet, SHV is now better equipped to handle external shocks and pursue further investment in processing, orchard upgrades, and logistics.
Sector-wide, global almond demand continues to rise, driven by health-conscious consumers and plant-based food trends. Australia remains a key supplier, and SHV’s diversified orchard base and branded capabilities provide significant market advantages.
However, risks remain, including weather variability, water access, and global trade conditions. Management is actively addressing these through water portfolio optimisation and strategic farming practices.
Is SHV a Good Stock to Buy?
From a valuation perspective, SHV currently trades at approximately 19.7× forward earnings, with a price-to-book (P/B) ratio of 1.25×. It has a low beta (~0.22), indicating lower share price volatility, and moderate leverage, with net gearing reported at around 87% in FY24. Following the capital raise and improved cost controls, earnings have begun to stabilise.
The company resumed dividend payments in FY24 with a fully franked final dividend declared post-December, though no interim dividend was issued. The full-year dividend yield remains modest, estimated between 0.4% and 0.7%, and future payouts will depend on continued earnings performance. Growth opportunities lie in maintaining higher almond yields and scaling up operations at Carina West.
A streamlined logistics system and strong processing margins further support SHV’s value proposition. However, investors should be aware of ongoing risks such as seasonal variation, rising water costs, logistical disruptions, and foreign exchange movements.
Overall, SHV may appeal to investors seeking exposure to agricultural commodities and vertically integrated agribusiness operations. Its recent recovery, stronger capital structure, and consistent global demand position the company favourably. While analysts remain cautious about earnings volatility and dividend sustainability, many see potential upside if SHV maintains momentum into FY25.
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Frequently Asked Questions
The full-year dividend yield is modest, at around 0.4%, based on a recent share price of $4.51. SHV resumed a fully franked final dividend in FY24 but did not issue an interim payout. Future dividends will depend on earnings growth and available cash flow.