Australian almond company Select Harvests’ profit has more than halved in the first half of its 2017 financial year, falling from A$23.6m to A$11.6m.
The company also posted a cent drop in revenue from A$166.4m in the first half of 2016, to to A$126.5m in the first half of the 2017 financial year.
Underlying EBIT fell 38 per cent to A$17.9m, while its almond division EBIT fell 38 per cent to A$15.6m.
The company cited lower almond prices than forecast as well as adverse impacts of currency and crop mixes for the drop in profit.
Select Harvests managing director Paul Thompson said the results were in line with their expectations.
“Select Harvests is structured and managed to withstand and capitalise on short term commodity price and currency fluctuations, ensuring delivery of long term sustainable value to shareholders,” he said.
Select Harvests has also invested A$26.5m in orchards and facilities that will see production rise 1,400 tonnes a year at full maturity.
The investments include taking a 22 per cent shareholding in Laragon Processing, an almond hulling, shelling and drying facility with capacity to process 10,000 tonnes each day, as well as the acquisition of South Australia’s Jubilee Almond Orchards.
The crop forecast for 2017 is estimated at 15,750 to 16,250 tonnes, with the company on course to increase production 50 per cent from 2017 to 2025, when its forecast to produce around 24,014 tonnes each year.
Globally, treenut consumption has increased 59 per cent in the past ten years, with almonds seeing the larges increased, driven by healthy eating trends, an emerging middle class in Asia and the Middle East, and marketing pushes from but the Almond Board of Australia and the California Almond Board.