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Select Harvests profit drops on nut prices

AAP logoAAP 26/08/2016 Trevor Chappell

Almond producer Select Harvests' annual profit slumped more than 40 per cent after the global price of the nut fell from last year's record highs.

The average price for almonds for the year to June 30 declined to $8.08 per kilogram from $11.45 the previous year, driving a 40.5 per cent drop in net profit to $33.8 million.

Select Harvest's almond crop also yielded 14,200 metric tonnes in 2016, compared to 14,500 in 2015.

Managing director Paul Thompson said that lower prices had boosted demand from Asia in recent months but that a bigger US crop for the 2016/17 season would affect pricing.

The US crop represents about 80 per cent of global supply and is expected to be five to 10 per cent larger than last year.

Still, Mr Thompson said overall demand for Select Harvests' products remained strong.

Mr Thompson said that, with increased plantings, Select Harvests was on the path to a production capacity of over 23,000 metric tonnes by 2024/25, which would make Select Harvests one of the world's largest growers.

Shares in Select Harvest closed down 48 cents, or 7.1 per cent, at $6.25.

LOWER PRICES CRIMP SELECT HARVESTS PROFIT

* Net profit down 40.5pct to $33.8m

* Revenue up 28pct to $286.2m

* Final dividend down 10 cents to 25 cents, fully franked

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