Select Harvests Ltd (ASX: SHV) shares are up more than 10% after the company announced a jump in first-half underlying net profit and a new share buyback.
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On a growth path
The company said in a statement to the ASX that it had delivered underlying net profit of $29.1 million in the first half, up from $21.9 million from the previous corresponding period.
The almond grower said it expected its 2026 almond crop to come in at 29,500 tonnes, with a forecast range of 28,000 to 31,000 tonnes, up from 24,903 tonnes for FY25.
Select Harvests also said the almond price had held up, with a price of $10.21 per kilogram achieved in the first half compared with $10.18 previously.
The company's Managing Director David Surveyor said regarding the results:
Underlying NPAT is up 33% in the first half. The earnings profile of the Company has changed and in the second half we will see the benefits of increased external grower volumes and value-added sales contributing to the profitability of what is expected to be a meaningfully improved FY2026 result. The Company is successfully delivering its strategy, and this is reflected in our financial performance. The Board has therefore declared a fully franked interim dividend of 3.5 cents per share and announced an on-market share buy-back of up to 10% of issued capital.
Select Harvests said the 2026 crop was going to be among the biggest in the company's history due to investments in both farming and processing practices.
The company added:
In terms of growth the Company has effectively doubled in size over the last three years. The Board has now set the next series of targets with the aim of increasing Select Harvests to 65,000MT and $700m revenue by 2030 based on confidence in our strategy and people.
The company said sales for the half were $45.5 million lower than for the same period the previous year, coming in at $59 million, however this was caused by a lower carryover crop and the impact of a late 2026 harvest due to wet weather.
The company said 2026 revenues "will grow materially driven by growth in Select Harvests crop size and external grower volumes''.
Expanding into new markets
The company said re sales:
In terms of global markets, the Company continues to grow its customer base, particularly in China and India allowing for an improved sales profile and diversification as we add more direct customers, consistent with our strategy. Access to the Middle East markets remains challenging with the disruption to supply chains, however we have successfully redirected supply to other markets.
The company said its board did not believe the share price reflected the value of the company, and hence it would conduct a buyback starting no earlier than 14 days from the announcement.
Select Harvests shares were trading 11.1% higher at $4.02. The company is valued at $514.43 million.
