Nut and health food company Select Harvests (ASX:SHV)
has reported a downturn in earnings and profits in the first half of the financial year.
Australia’s largest almond producer has attributed the profit hit to a substantial drop in the almond price, despite reporting a bumper crop.
The company reported a decline in profit of 92.5 per cent to $1.3 million in the period, as earnings slumped to $12.8 million.
Almonds have experienced a decline in price of $1.50 to $6 per kilo, following a successful almond harvest season in California.
The $717 million agricultural company has linked the reduced price to the increased almond supply due to a large-size output.
Select Harvests said, “With a record breaking 2020 Californian crop and a USDA Subjective Almond Estimate indicating another large crop this year, we are anticipating low levels of pricing for the remainder of 2021. The ongoing focus for 2021 is to ensure we maintain our horticultural practices to deliver another strong 2022 crop,”
The results have deprived the company of the ability to deliver a full-year dividend, citing difficult financial circumstances.
Shares in Select Harvests (ASX:SHV)
are trading 2.7 per cent lower at $5.80