Almond grower Select Harvests has turned around its heavy loss of a year ago to post a $20.4 million profit for 2017/18 but Coles private label products are crimping sales of its Lucky brand.
Select, Australia’s biggest almond grower, achieved revenue of $210.3 million for the year off the back of an 11 per cent increase in its almond crop size and an eight per cent lift in prices.
The $20.4 million full-year net profit was more than double the $9.25 million in 2016/17, when poor weather and prices impacted results.
However the revenue result was down 13 per cent on the previous year, in part due to lower earnings from Select’s food division and also because of the effects of the sales cycle in the previous year.
Select said the performance of its food division, which produces packaged nuts under the Lucky and Sunsol brands, was ‘disappointing’, with earnings for the division down 38 per cent to $5 million.
‘In the domestic supermarket category, the expansion of Coles House Brand has significantly impacted Lucky’s sales and market share,’ the company said in a statement.
Select said volumes from a major private label contract were also lower, however it’s Sunsol brand had experienced strong domestic sales and doubled exports to China.
The company said it will focus its food division on the export market.
In July Select signed a deal to supply Lucky nuts, seeds and mixed products to PepsiCo’s Chinese division.
Select declared a final dividend of seven cents, fully franked.
The company released its results after the close of trading on the ASX on Monday, with shares ending the day down 10 cents, or 1.8 per cent, to $5.60.
SELECT’S BUMPER CROP FOR 2017/18:
* Net profit $20.4m, up from $9.2m
* Revenue $210.2m, down 13.2pct
* Final dividend 7 cents, fully franked, up from nil in 2016/17