Select Harvests Limited
Annual Report 2023

2023
ANNUAL  
REPORT

TRANSFORMING  
OUR FUTURE

CONTENTS

Company Profile

Business Highlights

Chairman & Managing Director’s Report 

Select Harvests Strategy:  In control of our destiny

2023/24 Focus Areas

Sustainability Focus

Executive Team

Board of Directors

Performance Summary

Financial Report

Directors’ Report

Remuneration Report

Auditor’s Independence Declaration

2023 Financial Report

Consolidated Statement of Comprehensive Income

Consolidated Statement of Financial Position

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

Notes to the Consolidated Financial Statements

Directors’ Declaration

Independent Auditor’s Report

ASX Additional Information

Corporate Information

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Our almond kernels can be traced to the orchard 
where they are grown whether they are sold in 
India, China or in other parts of the world.

We acknowledge and pay our respect to 
the First Nations custodians of our lands, 
and to Elders past, present and emerging.

COMPANY PROFILE

Australia is a significant global 
almond producer and Select Harvests 
is one of Australia’s largest almond 
companies, supplying almonds 
domestically and internationally to 
supermarkets, health food stores, 
other food manufacturers, retailers 
and the almond trade.

Our Vision
To be a leader in the supply of better for you plant-based foods.

Our Operations
We supply the Australian and global almond markets. Our core 
capabilities across: Horticulture, Orchard Management, Almond 
Processing, Sales and Marketing enable us to add value across 
each of our business activities

Our geographically diverse almond orchards are located in 
Victoria, South Australia and New South Wales, with a portfolio 
that includes more than 9,371 hectares (23,156 acres) of 
company owned and leased almond orchards and land suitable 
for planting. These orchards, plus other independent orchards, 
supply our state-of-the-art processing facility at Carina West 
near Robinvale, Victoria.

Our Carina West processing facility has the capacity to process 
above 40,000MT of almonds in the peak season and is capable 
of meeting the ever increasing demand for inshell, kernel and 
value-added products.

Export
Select Harvests is one of Australia’s largest almond exporters 
and continues to build strong relationships in the fast growing 
markets of India and China, as well as maintaining established 
routes to markets in Asia, Europe and the Middle East.

Value-Adding Almond Business
Demand for Select Harvests value-added industrial almond 
products continues to grow under our Renshaw and Allinga 
Farms brands.

Our business supplies a full range of premium value-added 
almond products (blanched, roasted, sliced, diced, meal and 
paste) in multiple customer categories (beverage, bakery, 
confectionery, cereal, snacking, health, dairy (ice cream), 
re-packers and wholesalers) to over 600 customers globally.

SELECT HARVESTS ANNUAL REPORT 2023

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GEOGRAPHICAL DIVERSITY

We are one of the world’s largest 
almond growers, with a 
geographically diverse almond 
orchard portfolio supplying our 
state-of-the-art primary 
processing facility.

SOUTHERN 
REGION

PARINGA

WAIKERIE

LAKE
CULLULLERAINE

HILLSTON

NORTHERN 
REGION

GRIFFITH

Sydney

LOXTON

Adelaide

ROBINVALE

EUSTON

PIANGIL

CENTRAL 
REGION

Melbourne

RICHMOND

SELECT HARVESTS ORCHARDS 

SELECT HARVESTS PROCESSING  

SELECT HARVESTS HEAD OFFICE

9,371 HA 
(23,156 acres)
Total  
Planted Area

2,670 HA 
(6,596 Acres)
Southern Region 
Planted Area

4,754 HA 
(11,746Acres)
Central Region  
Planted Area

1,948 HA 
(4,814 Acres)
Northern Region 
Planted Area

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SELECT HARVESTS ANNUAL REPORT 2023

BUSINESS HIGHLIGHTS

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TONNAGE TOTALS
Weight of Kernels Per Annum  
(Metric Tonnes)

($117.1M) EBITDA LOSS

Earnings Before Interest Tax Depreciation and  
Amortisation (EBITDA)

($114.7M) NPAT LOSS

Net Profit After Tax (NPAT)

46.2% DTOE 

Net Bank Debt to Equity. (Excluding lease liabilities)

$6.42/KG AUD

Average Select Harvests Almond Price

$6.72/KG  
THEORETICAL ALMOND PRODUCTION COSTS

Based on a crop volume of 30,000MT

19,771MT  
ALMOND CROP

Yield impacted by adverse growing conditions

($8.2M) 
OPERATING CASH FLOW
Decrease of $35.1m, impacted by higher operational 
cost and lower 2023 crop volumes

4,829MT  
VALUE-ADD SALES

DOWN 60.8% 

Total Recordable Injury Frequency Rate (TRIFR)

SELECT HARVESTS ANNUAL REPORT 2023

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4

SELECT HARVESTS ANNUAL REPORT 2023CHAIRMAN & MANAGING DIRECTOR’S REPORT

Select Harvests is a leader in providing foods that are better 
for you and better for the planet. We remain committed to this 
and delivering value for our shareholders. 

For FY2023 the business recorded a Net Operating Loss after 
Tax of $114.7m. We recognise the need to improve financial 
performance and the business has commenced enacting a 
revised business plan.

The safety performance of the Company further improved in 
FY2023 with a TRIFR of 6.7. This is the result of a strong focus on 
safety by the Company over a long period of time. The next step 
is to further imbed world class safety practices into our everyday 
operations, so this becomes the way we conduct operations.

Following a challenging FY2022, FY2023 delivered another set 
of weather-related factors to contend with. The year 
commenced with unprecedented rainfall across all of the 
Company’s geographic footprint. This led to flooding across 
several of our orchards. We have recorded a write off for lost 
trees of $4.1m, however more significant damage was averted 
due to the dedication and professionalism of the Company’s 
employees in handling situations that have not been seen for a 
long period of time. 

Recovering from the impact of the floods, the Company moved 
its focus to harvesting the 2023 crop. This harvest period was 
again more difficult than a typical year due to the wet and cool 
conditions impacting operating costs and crop quality levels. 
Once the crop started to be delivered to the processing centre it 
became evident that the expected volume of 30,000MT was not 
going to be reached. The last three years of a La Nina weather 
pattern had impacted the trees and they did not produce to their 
normal levels. This impact was seen across all of the Company’s 
orchards and across the wider Australian almond industry.

In addition to the volume of nuts being lower the amount of 
weight in the actual kernel compared to the surrounding hull and 
shell was lower than average. This meant the trees put more of 
their energy into producing the protective hull and shell rather 
than the almond kernel. The consequence of both factors meant 
that the Company’s 2023 crop was 34% lower than forecast at 
19,771 MT. A substantial volume of the crop required drying and 
we applied the lessons from the prior year and effectively 
managed this at the Carina West Processing Facility. This year 
also saw the benefit of our more recent investment in sorting 
technology and allowed us to maximise the quality of the crop.

As the year moved forward into August with the Bloom for the 
2024 crop, we were very pleased by the number of flowers 
across all farms. We secured bees and flight hours were positive. 

However, the industry was impacted by the varroa mite incursion 
which has seen the Department of Agriculture, Fisheries and 
Forestry, move from an eradication phase to a management 
phase, meaning that going forward beekeepers will need to 
manage this pest as part of their practices. This had no impact 
on the 2024 crop pollination and the impact on the bee industry 
going forward will be closely monitored. 

The global almond market continued the prior year pricing trend 
and remained subdued for FY2023 and our average sell price for 
the year was $6.42/kg. The market purchased hand to mouth as 
it waited to see how the 2023 Californian crop developed and 
the pace at which carryout inventories reduced. Additionally, 
demand in the largest almond consumer market, the US, 
declined by 6.3%. The Company achieved premium pricing in 
key export markets however the lower quality crop meant there 
were limited opportunities to capitalise on this. 

The combination of the above factors has led to the FY2023 
financial performance of the Company being materially affected. 
As a result, operating cashflows were negative and steps were 
put in place by management to reduce spend and speed cash 
velocity. As a result, the Company maintained its operations 
within its set banking limits.

To date the 2024 crop is progressing well with a successful 
bloom and good growing conditions, a favourable forecast of 
hotter and drier conditions over the final growing and harvesting 
periods and below average water pricing.

The management team have put in place improved systems, 
practices and processes to increase the capacity of the Carina 
West Processing Facility. This allows for an uplift in throughput 
volumes. As a result, a significant volume of external grower 
volumes have been contracted to be processed by Select 
Harvests in the FY2024 year adding a new profitable and low 
risk earnings stream.

Work continued through the FY2023 year on maximising the full 
usage and value of the biomass product produced when 
growing almonds. Select Harvests continue to develop a 
profitable circular economy model whereby hull and shell is 
used for compost, energy and cattle feedlots. Select Harvests 
have also been continuing work to reduce our carbon emissions 
with significant reductions being achieved through better 
fumigation practices.

Financial Performance
Select Harvests delivered a FY2023 Net Loss After Tax of 
$114.7m. This loss was a result of three key factors:

i.  The 2023 crop was 34% lower than expectations. This was a 
result of three years of La Nina weather impacts. The impact 
of this was $74.5m

ii.  The value of the 2022 crop carryover inventory was written 
down further due to its poor quality profile as a result of the 
cooler and wetter season. The impact of this was $24.5m
iii.  The Company wrote off its goodwill intangible asset following 
a half year impairment assessment. The impact of this was 
$26.0m.

The 2023 crop yields were lower across all orchards and age 
profiles. The impact of the La Nina weather events were 
widespread across the Australian almond industry. The 
Company is forecasting that the orchards will rebound strongly 
for the 2024 crop production. The wet and cooler conditions also 

SELECT HARVESTS ANNUAL REPORT 2023

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CHAIRMAN & MANAGING DIRECTOR’S REPORT

GLOBAL ALMOND PRICING 
USD Per Pound

$8.00

$7.00

$6.00

$5.00

$4.00

$3.00

$2.00

$1.00

$ -

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EXTRA

SSR

STD

SUP

IN-SHELL (ASSUMING 70% CRACKOUT)

Source: Strata markets almond price table

impacted the 2023 crop quality profile with lower-than-average 
inshell production and decreased high quality kernel due 
predominantly to higher moisture levels.

Crop production costs increased 23.4% due to:
 x The increased costs of fertiliser and chemicals due to the 
Russia Ukraine conflict and lower production levels out of 
China
Increased orchard lease costs due to inflation adjustments 
and the full recognition of lease costs on orchards reaching 
full maturity

 x

 x Higher labour costs due to market related increases

The above increases were partially offset by lower water prices.

Our almond value-adding operating results delivered an 
improved result in FY2023. Production rates have increased 
following the finalisation and commissioning of new equipment 
implementation. The results were impacted however, by the 
current low almond price (particularly for low quality product) 
which has flowed through to lower sales values for value-add 
finished goods. 2022 crop input stock is forecast to be fully 
utilised by December 2023. 

The Company’s balance sheet remains in a sound position with 
excellent assets. Due to the lower volume of the 2023 crop and 
the lower quality profile of the 2022 and 2023 crops the level of 
cash receipts decreased. As a consequence, the Company’s net 
debt position increased to $190.2m with a gearing level of 46.2%. 
While this is higher than we would like, the Company’s forecast 
cashflows has us operating within banking limits and a reduction 
in debt level will follow the harvesting of the 2024 crop.

Reduced available product for shipping, the 2022 and 2023 
lower quality crop profiles and lower global almond prices also 
reduced the Company’s operating cashflow to a negative $8.2 
million (FY2022 $26.8 million). This, plus a further drawdown of 
debt, funded the year’s investing cashflows which were scaled 
back to operational requirements only. The Company has 
implemented strategies around customer receipts and supplier 
payments to increase the velocity of cashflows. 

As a result of the Company’s FY2023 financial operating result, 
the Directors have decided to not declare a final dividend. 

As the Company looks to enact its strategy, a series of initiatives 
have been put in place through the establishment of a project 
management office. Over the course of the year 52 projects were 
developed of which 26 are ongoing and 12 are completed. The 
value created from this work to the end of September 2023 was 
$8.9m profit and $18.5m cash. The value of these gains was 
consumed by the impact of a lower crop. None the less the 
project management office has proved an effective means of 
identifying and creating value.

Sustainability and Safety
We seek to create value for our shareholders and consider the 
triple bottom line: the profit we generate from our products, the 
planet we all live on and the people we rely on to be successful. 

This year has seen a substantial and positive improvement in 
safety results, processes, and practices. We have recorded a 
61% reduction in our total recordable injury frequency rate, 
demonstrating our people are a clear priority. We also reduced 
our greenhouse gas emissions by 25% compared to our 2020–21 
baseline and remain committed to become carbon neutral by 
2050.

We have taken steps to align our Sustainability Report with the 
recently released IFRS Sustainability Disclosures and continued 
to report in reference to the Global Reporting Initiative (GRI) 
2021). For the first time this year we are releasing our 
Sustainability Report alongside our Annual Report and have 
provided independent assurance over our greenhouse gas 
emissions data, to ensure its integrity. As a result, we are 
prepared for emerging mandatory sustainability related 
disclosures posed by the Australian Government.

Our approach to sustainability supports the global effort to 
achieve the United Nations Sustainable Development Goals  
and we are committed to the continual improvement of our 
sustainability performance. For more information, visit our 
Sustainability Report 2023. 

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SELECT HARVESTS ANNUAL REPORT 2023 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CHAIRMAN & MANAGING DIRECTOR’S REPORT

SELECT HARVESTS THEORETICAL HARVEST VOLUME (MT)

11.7%

(30.2%)

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YIELD FROM EXISTING PORTFOLIO 1

YIELD FROM COMMIT TED & IMMATURE 
NEW PLANTINGS 2

PANGIL ORCHARD 2

1.  The almond crop is biennial in nature 
with expected +/- 10% per annum 
variation in tonnage

2.  Assuming a 3.3MT per ha (1.35MT per 

acre) maturity profile for Select 
Harvests’ orchards and immature 
yields based on the average of the 
2019, 2020 and 2021 crops

3.  Assuming a 3.5MT per ha (1.4MT per 
acre) maturity profile for Piangil 
Almond Orchard.

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Almond Market Outlook
The global almond price remained sluggish over the FY2023 
period. The USDA released their Objective Estimate in July 2023 
of 2.6 billion pounds for the US 2023 almond crop. This was 
higher than industry expectations and prices softened. 
Consequently, the market held back on buying as they waited to 
see how the crop developed. As a result, shipment levels were 
soft, internationally and domestically (USA), which meant 
carryover stock numbers have not reduced as fast as expected.

The size and quality of the US crop has been the subject of much 
discussion. California encountered unseasonal cold and wet 
weather during the final growing periods and the harvest period. 
Additionally, the industry has encountered a higher prevalence of 
the Navel Orange Worm, mould and damage. We are starting to 
see these factors impact the quality profile and size of the US 
2023 crop. This is likely to lead to higher pricing for better quality 
product, particularly Nonpareil and Inshell. 

In October 2023 the USDA released their Tree Nuts: World 
Markets and Trade Report. This report estimates that 2023/24 
global demand for almonds will increase by 6%, outstripping the 
estimated production levels for the same period.

Based on the current Californian weather related factors and an 
increase in global demand, almond pricing levels are increasing.

Following the adverse wet conditions over the past two seasons 
the 2024 crop is progressing well. The trees are in good health 
and the key milestones of bloom and pollination have both 
successfully completed. Forecast drier and hotter conditions 
over the next few months leading into and during harvest will set 
the Company up for a crop in line with projected expectations 
for both volume and quality. 

Thank You
During the year Paul Thompson, the previous Managing 
Director, departed Select Harvests. Appointed to the role in July 
2012 Paul substantially grew the Company over 10 years. We 
would like to acknowledge and thank Paul for his leadership over 
this period.

The past two years have thrown up numerous challenges for 
the Company to manage through. The Company’s employees 
have handled these challenges in a professional manner and 
with unwavering dedication. There have been numerous 
actions that have been undertaken that will put the Company 
in a position to benefit when the global almond market returns 
to its average operating position and crop volumes return to 
improved growing conditions.

Select Harvests has world class assets and being one of the 
world’s largest vertically integrated almond producers has 
ensured that the Company has navigated through these recent 
downward cycles and will be able to capitalise on future upside.

The underlying fundamentals of the almond industry remain 
positive. Select Harvests is very well placed to benefit from 
the forecast improved global market pricing and the likelihood 
of a larger and better quality 2024. 

Select Harvests’ targeted strategic focus going forward is to 
increase our volume of almonds, improve our processing scale 
and efficiency, maximise the return from our crop and innovate 
to drive step out growth.

We would like to thank our shareholders, customers, suppliers, 
and employees for all their support and commitment during 
FY2023 and look forward to continuing to pursue operational 
improvements and growth opportunities in 2024. 

Travis Dillion 
Chairman

David Surveyor 
Managing Director & CEO

SELECT HARVESTS ANNUAL REPORT 2023

7

 
SELECT HARVESTS STRATEGY:  
IN CONTROL OF OUR DESTINY

Vision

To be a leader in the supply of ‘better for you’ and  
‘better for the planet’, plant-based foods

Mission

Our mission is to deliver sustainable returns  
to our shareholders by marketing premium  
almond products to the world

Three Horizons

HORIZON 1 
Strong Foundation

HORIZON 2 
Sustainably Profitable 

HORIZON 3 
Transformation

Strategic Priorities

Substantially 
greater almond 
volume

Leadership in 
processing scale  
and efficiency

Maximise return  
from the crop

Innovate to drive  
step-out growth

Delivery Pillars

ZERO HARM 

SUSTAINABLE  
GROWTH

FINANCIAL 
PERFORMANCE

HORTICULTURAL 
EXCELLENCE

PROCESSING 
EXCELLENCE

SUPPLY CHAIN 
INTEGRATION

CUSTOMER  
VALUE

HIGH PERFORMANCE  
& CULTURE

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SELECT HARVESTS ANNUAL REPORT 2023VALUE-ADD ALMONDS

Renshaw supplies a full range of premium value-added 
almond products in multiple supplier categories, including 
beverage, bakery, confectionery, cereal, snacking, health, 
dairy (ice-cream), re-packers and wholesalers, to over 
600 customers globally.

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SELECT HARVESTS ANNUAL REPORT 202310

SELECT HARVESTS ANNUAL REPORT 20232023/24 FOCUS AREAS

Our attention is on the product  
we produce, minimising the  
impact on the planet and ensuring  
the safety of our people, whilst  
delivering sustainable profits. 

PRODUCT

PLANET

PEOPLE

PROFIT

FOOD SAFETY  
& QUALITY

114 complaints
(100 in 2021–22)

CIRCULAR FOOD  
PRODUCTION

 7,792 tonnes harvest biomass 
returned to orchards in our  
compost mix
(8,280 tonnes in 2021–22)

WATER EFFICIENCY

100% of our orchards use drip 
irrigation, tree and soil monitoring 
systems

EMISSIONS, CLIMATE 
ADAPTATION & RESILIENCE

25% reduction in greenhouse  
gas emissions 
(compared to our 2020-21 baseline)

WORKPLACE HEALTH & SAFETY

LOCAL COMMUNITIES

6.7 
Total recordable work-related  
injury frequency rate 
 (17.1 in 2021–22)*

$19,400 
Community grants
($35,300 in 2021–22)

CARINA WEST PROCESSING 
CAPABILITY
Increased to 40,000MT

PROJECT MANAGEMENT 
DELIVERY
52 Projects identified  
with 12 completed

* Total recordable work-related injuries include ‘treatment injuries’ and ‘lost time injuries’. Frequency 
rates are calculated by the total category number divided by total hours worked (for all direct and 
labour hire staff) multiplied by one million.

11

SELECT HARVESTS ANNUAL REPORT 2023SUSTAINABILITY FOCUS

Our sustainability strategy 
centres around three pillars: 
product, planet and people,  
with two priorities for each to 
achieve our renewed strategy, 
metrics and targets.

PRO

D

U

C

T

Food Safety  
& quality

Local 
communities

Circular food  
production

Workplace  
health & safety

Water efficiency

Emissions, climate  
adaption &  
resilience

T

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A

L

P

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SELECT HARVESTS ANNUAL REPORT 202313

SELECT HARVESTS ANNUAL REPORT 2023EXECUTIVE TEAM

Left to right: Ekrem Omer, Ben Brown, David Surveyor, Bradley Crump, Trisha Crichton and Dan Wilson

David Surveyor
Managing Director and CEO 

Trisha Crichton
General Manager People, Safety & Sustainability

Appointed as the Managing Director and Chief Executive Officer of 
Select Harvests Limited on 20th February 2023. David has experience 
across a variety of industries and expertise in the food sector. David was 
previously Chief Executive of Alliance Group Limited, Chairman of 
Alliance Group (NZ) Ltd, the UK subsidiary, a director of The Lamb 
Company (North America), Director Meateor Pet Foods, Director Beef 
and Lamb New Zealand and a member of the Meat Industry Association 
Council. David was also previously Executive General Manager of 
Laminex, a subsidiary of Fletcher Building and has held roles with BHP 
in Australia and as President of Bluescope Lysaght in Malaysia.

Bradley Crump
CFO and Company Secretary 

Brad joined Select Harvests as Chief Financial Officer in 2017 and was 
appointed Company Secretary on 7 August 2018. He is a Certified 
Practising Accountant and has over 15 years experience in senior 
financial management. Most recently he has been the CFO of Redflex 
Limited and previously gained extensive experience in agribusiness as 
CFO of Landmark (Australia’s largest rural services provider) and senior 
roles within AWB Limited. He brings extensive agribusiness, agri-
services and related capital management experience to the role.

Ben Brown
General Manager, Horticulture

Ben joined Select Harvests in 2014. Ben held the position of Project and 
Technical Manager of the Horticultural Division, before being appointed 
General Manager Horticulture in April 2018. Ben is an Applied Science 
graduate with Honours in Soil Science and has 20 years experience 
across perennial irrigated horticulture with expertise in: orchard 
development; production horticulture; development of detailed RD&E 
strategies; and extension and technology transfer of best practice. Prior 
to joining Select Harvests, Ben was the Industry Development Manager 
at the Almond Board of Australia and an irrigation and soil agronomist.

Trisha joined Select Harvests in July 2023. Trisha is a highly 
accomplished and results driven HR executive with a proven track 
record in driving organisational change, leadership, and optimising HR 
initiatives. With extensive experience in centralised HR services, safety 
culture and fostering employee engagement, she is adept in aligning HR 
strategies with business objectives to achieve exceptional outcomes. 
Throughout her career, Trisha has successfully led large-scale 
transformational initiatives, implemented change management 
strategies, and driving a culture of continuous improvement. Trisha has 
held key leadership roles, including General Manager Human Resources 
at McConnell Dowell, where she oversaw the development and 
execution of HR strategies for the Australian Business Unit, and HR 
Shared Services Director at Serco, where she led the implementation of 
global HR centralised solutions.

Dan Wilson
General Manager, Almond Operations

Dan joined Select Harvests in 2017. He has held the positions of H2E 
Cogen Manager, Operations Manager - Mechanical Engineering, and 
was appointed General Manager of Almond Operations in July 2021. 
Before joining Select Harvests, Dan was the Plant Manager for the BOC 
bulk gas division in the Northern Territory and brings with him extensive 
knowledge in production, processing and operations.

Ekrem Omer
General Manager, Sales

Ekrem joined Select Harvests in August 2021 where he assumed the role 
of International Sales Manager, before being appointed as the General 
Manager of Sales in July 2023. Ekrem holds an international business 
degree, and has over 15 years’ experience in the industry. Before joining 
Select Harvests he was involved in an Ingredients business in Australia. 
His career has spanned multiple business areas with extensive 
knowledge in sales, procurement and shipping operations, whilst adding 
value to stakeholder partnerships, making him a driving force in the 
organisation.

14

SELECT HARVESTS ANNUAL REPORT 2023BOARD OF DIRECTORS

Travis Dillon
Chair and Non-Executive 
Director

David Surveyor
Managing Director and CEO 

Guy Kingwill
Non-Executive Director 

Margaret Zabel
Non-Executive Director 

Michelle Somerville
Non-Executive Director 

Joined the board on 29 November 2021 and appointed Chair on 27 May 2022. Travis has 
commercial and strategic expertise in the agricultural sector and relevant distribution 
channels. He is currently the Deputy Chair of Lifeline Australia, Chair of Clean Seas Seafood 
and Chair of Terragen Holdings Limited. Travis has previously served as CEO and Managing 
Director of Ruralco Holdings Limited until its acquisition by Nutrien in September 2019. Prior 
to becoming Ruralco’s Managing Director in 2015, he was the Executive General Manager of 
Ruralco’s operations. Over a career in agri-services, spanning nearly three decades, Travis 
has held many positions including Branch Manager, Agronomist and numerous Category 
Manager roles. He is a current member of the Remuneration and Nomination Committee.

Appointed as the Managing Director and Chief Executive Officer of Select Harvests Limited 
on 20th February 2023. David has experience across a variety of industries and expertise in 
the food sector. David was previously Chief Executive of Alliance Group Limited, Chairman 
of Alliance Group (NZ) Ltd, the UK subsidiary, a director of The Lamb Company (North 
America), Director Meateor Pet Foods, Director Beef and Lamb New Zealand and a 
member of the Meat Industry Association Council. David was also previously Executive 
General Manager of Laminex, a subsidiary of Fletcher Building and has held roles with BHP 
in Australia and as President of Bluescope Lysaght in Malaysia.

Appointed to the board on 25 November 2019. Guy has an extensive background in 
horticulture, international soft commodity marketing and water investment and trading. He 
is currently on the Board of Agriculture Capital Management (Australia) Pty Ltd. Guy has 
previously served as Managing Director of Tandou Limited, and as a non-executive director 
of Lower Murray Urban and Rural Water Corporation and Tasmanian Irrigation Pty Ltd. He is 
Chair of the Remuneration and Nomination Committee and a current member the Audit and 
Risk Committee and the Sustainability Committee.

Appointed to the board on 3 October 2022. Margaret is a specialist in customer centred 
business transformation, brand strategy, innovation, digital communications, customer 
experience and change leadership. She has 20 years’ experience working across major 
companies and brands in FMCG, food, technology and communications industries 
including multinationals, ASX 100 and not-for-profits. Her previous roles include National 
Marketing Director Lion Nathan, VP Marketing for McDonald’s’ Australia and CEO and 
Board Director of The Communications Council. Margaret has also served as a Non-
Executive Director for the mental health charity RUOK? for 5 years and is currently a 
Non-Executive Director of G8 Education, The Reject Shop, Collective Wellness Group and 
Fairtrade AUNZ. She is Chair of the Sustainability Committee.

Appointed to the board on 13 December 2022. Michelle was previously a partner of KPMG 
for nearly 14 years specialising in external audit and advising Australian and international 
clients both listed and unlisted primarily in the financial services market in relation to 
business, finance risk and governance issues. Michelle holds a Bachelor of Business and a 
Masters of Applied Finance. She is a Graduate Member of the Australian Institute of 
Company Directors and a Fellow Chartered Accountant. She was also previously an 
independent consultant to the UniSuper Ltd Audit, Risk and Compliance Committee and a 
Non- Executive Director of Bank Australia Limited, Challenger Retirement and Investment 
Services Ltd, Save the Children (Australia) and Down Syndrome Australia.

Paul van Heerwaarden
Non-Executive Director

Appointed to the board on 1 November 2023. Paul has over 30 years’ experience in 
agribusiness including soft commodity cycle risk management and managing integrated 
supply chains from farm through to processing and distribution into industrial and consumer 
channels, both domestically and internationally. He has previously held roles with Cargill 
and Ridley AgriProducts and recently retired from his role as CEO of the Bega Group (BGA). 
Paul is a Director of Dairy Australia Ltd. He is a current member of the Audit and Risk 
Committee and the Remuneration and Nomination Committee.

15

SELECT HARVESTS ANNUAL REPORT 2023PERFORMANCE SUMMARY

Results – Key Financial Data

$’000 (except where indicated)

Revenue from Continuing Operations

Almond Crop Volume (MT)

Almond Price (A$/kg)

Underlying EBITDA from Continuing 
Operations

Depreciation and Amortisation

Underlying EBIT

From Continuing Operations

From Discontinued Operations

Underlying EBIT

One off items

Reported EBIT

Interest expense

Profit before tax

Tax expense

Net Profit After Tax (NPAT)

Earnings Per Share (EPS) (cents)

Dividend Per Share (DPS) - Interim (cents)

Dividend Per Share (DPS) - Final (cents)

DPS - Total (cents)

Net Debt (inc. lease liabilities)

Gearing (inc. lease liabilities) - %

Share Price (A$/Share as at 30 Sep)

Market Capitalisation (A$M)

FY2023

 206,003 

19,771

 $6.42 

FY2022

 235,516 

28,312

 $6.80 

Variance

(29,513)

(8,451)

-$0.38 

Variance %

-12.5%

-30.2%

-5.6%

(86,987)

(32,247)

40,384

(28,342)

(127,371)

(3,905)

-315.40%

-13.8%

(131,277)

3,198

(128,078)

(31,287)

(159,365)

(6,040)

(165,406)

45,920

(119,486)

-1090.1%

100.0%

-1448.2%

-2592.0%

-1585.5%

-144.8%

-2813.2%

-4097.5%

-2510.7%

(98.7)

-2530.7%

(2.0)

-100.0%

(119,234)

 - 

(119,234)

(30,080)

(149,314)

(10,212)

(159,526)

44,799

(114,727)

(94.8)

0

0

0

 419,843

102.0%

 $4.01 

 485.4

12,042

(3,198)

8,844

1,207

10,051

(4,172)

5,880

(1,121)

4,759

3.9

0

2

2

 376,648

72.4%

 $5.26 

 636.2

Note:   It should be reiterated that, as is always the case at the time the Company develops the crop value estimate, there is the potential for changes to occur 
both in yield outcomes (as the crop harvest and processing progress) and the pricing environment (driven by almond market or currency) shift. 

Definitions:  
1.   EBITDA and EBIT are Non-IFRS measures used by the Company are relevant because they are consistent with measures used internally by management 

and by some in the investment community to assess the operating performance of the business. The non-IFRS measures have not been subject to audit or 
review.

16

SELECT HARVESTS ANNUAL REPORT 2023CLOSED LOOP COMPOST

Our carbon-based fertiliser is used at scale in our orchards 
and has the potential to recycle most of our hull waste. We 
have created a closed loop by using the waste hull ash from 
the CoGen power plant, which is high in potassium, as an 
important ingredient to our fertiliser program.

17

SELECT HARVESTS ANNUAL REPORT 202318

SELECT HARVESTS ANNUAL REPORT 2023FINANCIAL REPORT

Directors' Report

Remuneration Report

Auditor’s Independence Declaration 

2023 Financial Report

Consolidated Statement of Comprehensive Income

Consolidated Statement of Financial Position

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

Notes to the Consolidated Financial Statements

Directors' Declaration

Independent Auditor’s Report

ASX Additional Information

Corporate Information

20

33

44

45

46

47

48

49

50

88

89

94

96

19

SELECT HARVESTS ANNUAL REPORT 2023DIRECTORS’ REPORT

The directors present their report together with the financial report of Select Harvests Limited and controlled entities (referred to 
hereafter as Select Harvests, “the Company”, “the Group” or “the consolidated entity”) for the year ended 30 September 2023.

Directors
The qualifications, experience and special responsibilities of each person who has been a director of Select Harvests at any time during 
or since the end of the financial year is provided below, together with details of the Company Secretary. Directors were in office for this 
entire period unless otherwise stated.

Names, qualifications, experience and special responsibilities 

T Dillon
Adv Dip RBM, MBA, MAICD (Chairman, Non-Executive Director)

Joined the board on 29 November 2021 and appointed Chairman on 27 May 2022. Travis has commercial and strategic expertise in the 
agricultural sector and relevant distribution channels. He is currently the Deputy Chairman of Lifeline Australia and Chairman of Clean 
Seas Seafood (ASX: CSS). Travis has previously served as CEO and Managing Director of Ruralco Holdings Limited until its 
acquisition by Nutrien in September 2019 and as Chairman of Terragen Holdings (ASX: TGH). Prior to becoming Ruralco’s Managing 
Director in 2015, he was the Executive General Manager of Ruralco’s Operations. Over a career in Agriservices, spanning nearly three 
decades, Travis has held many positions including Branch Manager, Agronomist and numerous Category Manager roles. He is a 
current member of the Remuneration and Nominations Committee and Audit and Risk Committee.

Interest in Shares: 20,100 fully paid shares.

D Surveyor
B Economics, Grad Dip Applied Finance and Investment, MAICD (Managing Director and CEO) 

Appointed as the Managing Director and Chief Executive Officer of Select Harvests on 20th February 2023. David has experience 
across a variety of industries and expertise in the food sector and was recently appointed as a Director of the Almond Board of 
Australia. David was previously Chief Executive of Alliance Group Limited, Chairman of Alliance Group (NZ) Ltd, the UK subsidiary, a 
director of The Lamb Company (North America), Director Meateor Pet Foods, Director Beef and Lamb New Zealand and a member of 
the Meat Industry Association Council. David was also previously Executive General Manager of Laminex and has held roles with BHP 
in Australia and as President of Bluescope Lysaght in Malaysia.

Interest in shares: Nil.

G Kingwill
B Com, CA, FAICD (Non-Executive Director)

Appointed to the board on 25 November 2019. Guy has an extensive background in horticulture, international soft commodity 
marketing and water investment and trading. He is currently on the Boards of Agriculture Capital Management (Australia) Pty Ltd. Guy 
has previously served as Managing Director of Tandou Limited, and as a non-executive Director of Lower Murray Water Urban and 
Rural Water Corporation and Tasmanian Irrigation Pty Ltd. He is Chair of the Remuneration and Nomination Committee and a current 
member of the Audit and Risk Committee and the Sustainability Committee.

Interest in shares: 23,511 fully paid shares.

M Zabel
B Math, MBA, GAICD (Non-Executive Director)

Appointed to the board on 3 October 2022. Margaret is a specialist in customer centred business transformation, brand strategy, 
innovation, digital communications, customer experience and change leadership. She has 20 years’ experience working across major 
companies and brands in FMCG, food, technology and communications industries including multinationals, ASX 100 and not-for-
profits. Her previous roles include National Marketing Director Lion Nathan, VP Marketing for McDonalds’s Australia and CEO and 
Board Director of The Communications Council. Margaret has also served as a Non-Executive Director for the mental health charity 
RUOK? for 5 years and is currently a Non-Executive Director of G8 Education (ASX: GEM), The Reject Shop (ASX: TRS), Collective 
Wellness Group and Fairtrade AUNZ. She is Chair of the Sustainability Committee and member of the Remuneration and Nomination 
Committee.

Interest in shares: 9,000 fully paid shares.

20

SELECT HARVESTS ANNUAL REPORT 2023DIRECTORS’ REPORT
(CONTINUED)

M Somerville
B Bus (Accounting), MAF, FCA, FAICD (Non-Executive Director) 

Appointed to the board on 13 December 2022. Michelle was previously a partner of KPMG for nearly 14 years specialising in external 
audit and advising Australian and international clients both listed and unlisted primarily in the financial services market in relation to 
business, finance risk and governance issues. Michelle holds a Bachelor of Business and a Masters of Applied Finance. Michelle is 
currently a director of Insignia Financial Limited (ASX: IFL), Epworth Foundation and Summer Foundation. She was previously a 
director of GPT Group (ASX: GPT). She is Chair of the Audit and Risk Committee and a current member of the Sustainability 
Committee.

Interest in shares: Nil.

P van Heerwaarden
B Bus, MBA, MAICD (Non-Executive Director)

Appointed to the board on 1 November 2023. Paul has over 30 years’ experience in agribusiness including soft commodity cycle risk 
management and managing integrated supply chains from farm through to processing and distribution into industrial and consumer 
channels, both domestically and internationally. He has previously held roles with Cargill and Ridley AgriProducts and recently retired 
from his role as CEO of the Bega Group (ASX: BGA). Paul is a Director of Dairy Australia Ltd. He is a current member of the Audit and 
Risk Committee and the Remuneration and Nomination Committee.

Interest in shares: Nil.

P Thompson
B Bus, MAICD (Managing Director and Chief Executive Officer)

Appointed as the Managing Director and Chief Executive Officer (MD) of Select Harvests Limited on 9 July 2012 and retired on 3 
March 2023. Paul has over 30 years of management experience and was previously a Director of the Almond Board of Australia. Paul 
was previously a President of SCA Australasia, part of the SCA Group, one of the world’s largest personal care and tissue products 
manufacturers. He is a member of the Australian Institute of Company Directors and has formerly held positions as a Director of the 
Food and Grocery Council and councillor in the Australian Industry Group.

F S Grimwade
B Com, LLB (Hons), MBA, FAICD, SF Fin, FCIS (Non-Executive Director)

Appointed to the board on 27 July 2010 and retired on 27 February 2023. Fred is a Principal and Director of Fawkner Capital, a 
specialist corporate advisory and investment firm. He is Chairman of CPT Global Ltd (ASX: CGO; director since October 2002) and 
XRF Scientific Ltd (ASX: XRF; director since May 2012) as well as being a director of Australian United Investment Company Ltd (ASX: 
AUI; director since March 2014). He was formerly Chairman of Troy Resources Ltd (2013-2017), a non-executive director of AWB Ltd., 
and has held general management positions with Colonial Agricultural Company, Colonial Mutual Group, Colonial First State 
Investments Group, Western Mining Corporation and Goldman, Sachs and Co. 

F Bennett
BA (Hons), FCA, FAICD (Non-Executive Director)

Appointed to the board on 6 July 2017 and retired on 27 February 2023. Fiona is a Chartered Accountant and an experienced non-
executive director with an extensive background in business management, corporate governance, audit and risk. She is currently 
Chairman of the Victorian Legal Services Board. Ms Bennett has previously served on the boards of BWX Limited (2018-2022), Hills 
Limited (2010-2021) and Beach Energy Limited (2012-2017). She has previously held senior executive roles at BHP Limited and Coles 
Limited and has been Chief Financial Officer at several organisations in the health sector. 

Company Secretary

B Crump
B Bus, CPA, AMP INSEAD (Chief Financial Officer and Company Secretary)

Joined Select Harvests as Chief Financial Officer on 20 November 2017 and appointed Company Secretary on 7 August 2018. He is a 
Certified Practising Accountant and has over 15 years experience in senior financial management. Most recently he has been the CFO 
of Redflex Limited and previously gained extensive experience in agribusiness as CFO of Landmark (Australia’s largest rural services 
provider) and senior roles within AWB Limited. He brings extensive agribusiness, agri services and related capital management 
experience to the role.

Interest in shares: Nil.

21

SELECT HARVESTS ANNUAL REPORT 2023DIRECTORS’ REPORT
(CONTINUED)

Corporate Information

Nature of operations and principal activities
The principal activities during the year of entities within the Group were the growing, processing, packaging and sale of almonds and 
its by-products from company owned and leased almond orchards.

Employees
The Company employed 476 full time equivalent employees as at 30 September 2023 (30 September 2022: 568 full time equivalent 
employees).

Full time equivalent employees include: executive, permanent, contractor and seasonal (casual and labour agency hire) employment 
types.

Operating and Financial Review

Overview
Select Harvests is one of the world’s largest fully integrated almond companies and the second largest almond producer in Australia. 
With its core world class assets, the Company is well placed to continue benefit from the global almond macro and growth in the 
wider better for you plant based foods.

This year Select Harvests has faced a number of challenges that have impacted operations and the financial performance of the 
Company. The third year of a La Nina weather pattern bought cooler and wetter than average conditions during key growing periods. 
The impact of this weather pattern led to the Company’s 2023 crop being 38% lower than expectations. This reduction was seen 
across the Australian almond industry. Additionally, the almond market remained subdued with pricing levels staying predominantly at 
historic lows.

The focus during FY2023 has been to implement actions through the Project Management Office that drive operating profit and 
increase cash velocity to manage the Company’s debt levels. Implemented actions have delivered material cost reductions, improved 
efficiencies and improved cash cycle timeframes. At the same the Company has ensured that FY2023 activities have not impacted the 
potential performance of the 2024 crop. 

The Board, Executive, and key leaders remain committed to ensuring all employees remain engaged with driving the Company’s 
strategy to be in a position to capitalise on the forecast 2024 crop improvement and increased global market pricing.

Pleasingly, our safety performance continued to improve with Total Recordable Injury Frequency Rate lowering to 6.7 vs 17.1 in FY2022. 
Safety remains the key focus for the Company with key behaviour change actions currently being imbedded within the Company’s 
operations.

Horticulture
Heavy rains led to a number of flooding events through October and November 2022. While a number of orchards were impacted, the 
horticultural team’s actions ensured there was minimal damage to infrastructure. These events, in addition to the prolonged cooler 
weather conditions, impacted yield levels and the quality profile of the 2023 crop. 

Additionally, the 2023 crop harvest was impacted by persistent shower activity coupled with below average temperatures. This 
combination materially impacted harvest activities and subsequently the crop quality profile. Harvested almonds had high moisture 
content and cooler conditions meant they were on the ground for longer than average periods leading to increased insect damage 
and instances of mould. 

As a consequence of the wetter and cooler conditions across key growing periods, the yields achieved across both mature and 
immature orchards was significantly lower than average. This was evident across all geographies and the almond industry in general. 
These impacts led to a 2023 crop of 19,771 MT, 30.2% lower than the 2022 crop.

Horticultural growing costs increased during the year due predominantly to higher fertiliser and chemical pricing (impacted by the 
Russia / Ukraine conflict). Most of the other cost categories, with the exception of water, also increased for the 2023 crop.

The forward horticultural focus is yield, costs and quality.

Processing
Processing was complicated by a lower than average quality profile, due to the lower volume of crop to be processed. Throughput 
rates were reduced for portions of the crop to ensure the maximum level of product was graded to higher levels of inshell and kernel 
(attracting higher pricing). We also benefited from the Company’s recent investments in state-of-the-art technology over the past  
3 – 4 years and the ongoing use of on-farm conditioners. The 2023 crop had been fully hulled and shelled by end of the FY2023 year. 
The remaining sorting and packing continues and will be completed in the second quarter of FY2024.

Due to the wet harvest conditions impacting the delivered crop, approximately 25% of the crop had to be mechanically dried prior to 
the hulling and shelling process. Higher moisture levels once again led to lower levels of inshell produced and a higher percentage of 
lower grade product. 

22

SELECT HARVESTS ANNUAL REPORT 2023DIRECTORS’ REPORT
(CONTINUED)

The Carina West processing facility achieved less than 2% downtime for the year. All repair work following the major fire on Boxing 
Day in 2021 has been completed and all insurance payments have been received. As part of this process Select Harvests took the 
opportunity to upgrade and expand its concrete structural footings and implemented state-of-the-art fumigation chambers.

The value-add facility had a number of challenges dealing with a problematic lower grade portion of the 2022 crop (high instances of 
mould and insect damage). This product has been allocated to specific production runs and as a consequence the value-add facility is 
now operating at full production and delivering improved yields. Usage of the 2022 crop as input product should be completed by 
December 2023. 

Sales and Marketing
To date 83% of the 2023 crop is either shipped or committed for sale.

During FY2023 the Company sold the remainder of its 2022 crop inventory available for external sales (there remains some inventory 
being used as inputs material for value-add production). Given this product’s quality profile it was transacted at low grade 
manufacturing prices.

The 2023 crop almond price remained flat throughout the year as the market waited to see how the profile of the 2023 US crop 
eventuated. Given the Company’s smaller volume and the lower levels of inshell and high-quality product, options to achieve premium 
pricing margins were limited. 

Demand levels and confidence in buyers committing to increased stocks is improving. However, commitment levels in key export 
markets still remain below pre-pandemic levels. 

The value-add activity’s contribution was impacted by to the use of prior period raw material, most of which was very low quality. As 
finished goods sales prices reduced (in line with the lower almond market) gross margins were negatively impacted. The use of 2022 
crop through value-add is scheduled to be completed by December 2023 with 2023 crop being utilised thereafter.

Costs, Capital and Cashflow
2023 crop costs of production per kg increased by 73.1% due predominantly to the lower volume of the 2023 crop (i.e. the 2023 
growing costs were incurred on a full production basis). Gross production costs increased year on year by 23.4% due mainly to 
increased fertiliser and chemical costs, higher bee costs and increased lease costs due to a number of orchards reaching full maturity. 
Additionally, immature orchards cost recognition increased in line with their age profile with increased yield benefits having been 
recognised in prior years. Gross processing costs were lower due to the lower crop volume however additional drying costs were 
again incurred due to the extra moisture levels as a result of the wetter and cooler conditions.

Operational cashflows reduced in FY2023 as a result of a lower volume and quality 2023 crop and the reduction in marketable value 
of the remaining inventory of the 2022 crop. Additionally, global almond prices remained well below their historical averages. Select 
Harvests' 2023 inshell levels (which attract premium pricing and generate early cashflows) were lower than average due to the cooler 
and wetter conditions during the harvest period. The Company produced positive operating cashflows in the second half.

Given the reduced 2023 crop and the ongoing low pricing environment in FY2023, costs and capital expenditure were tightly 
controlled. No major capital expenditure was undertaken, and no permanent water was acquired. 

The combination of a lower 2023 crop volume, crop quality profile and lower global almond pricing environment has led to the 
Company’s debt position increasing to $190.2M (FY2022 $134.5M) resulting in a bank debt to equity ratio of 46.2%.

No greenfield activity or acquisitions were undertaken during FY2023. The Company’s focus was on organic improvement through 
efficiency gains and the development of the Project Management Office that has in excess of 50 projects identified to improve profit 
and/or cashflow. 

23

SELECT HARVESTS ANNUAL REPORT 2023DIRECTORS’ REPORT
(CONTINUED)

Financial Performance Review

Profitability 
The Reported Net Loss After Tax (NPAT) is ($114.7) million. The Reported Loss Before Interest, Tax, Depreciation and Amortisation 
(EBITDA) is ($117.1) million and the Reported Loss Before Interest and Taxes (EBIT) is ($149.3) million. 

Results Summary and Reconciliation

Reported Result (AIFRS)

EBIT from continuing operations

EBIT from discontinued operations

Underlying EBIT

One off items

Reported EBIT

Interest Expense

Net (Loss)/Profit Before Tax

Tax (expense)

Net (Loss)/Profit After Tax

Earnings Per Share (cents)

FY2023  
$000’s

(119,234)

-

(119,234)

(30,080)

(149,314)

(10,212)

(159,526)

44,799

(114,727)

(94.8)

FY2022  
$000’s

12,042

(3,198)

8,844

1,207

10,051

(4,171)

5,880

(1,121)

4,759

3.9

Company Profitability
Company revenue from continuing operations of $206 million was generated for FY2023. This was 12.5% lower than last year mainly 
due to a lower 2023 crop of 19,771MT (2022: 28,312MT) caused by record rainfall in 2022 and cooler growing conditions across 
south-east Australia. In addition, a significant portion of the remaining 2022 crop was downgraded during the year due to quality 
issues primarily related to mould (from exposure to moisture) after a detailed review.

The FY2023 reported loss before interest and taxes (EBIT) of ($149.3) million was $159.4 million lower than FY2022. The lower result 
was mainly due to:

 x The 2023 crop volume falling 34% below the forecast result. This reduction was due to the impact of the La Nina weather pattern 
impacting 2022 and 2023 growing and harvest conditions. This shortfall was evident across the wider Australian almond industry. 
Additionally, due to the cooler and wetter climate, the quality profile of the crop was below the Company’s average quality mix.
 x Global almond prices remained well below historical averages with the US continuing to lower their levels of carry out inventory. 
The increased percentage of lower grade crop across US and Australian producers also weighed down the average price. Select 
Harvests' 2023 crop almond price remained below historical averages at $6.42/kg.

 x Following a detailed review of the Company’s carry forward 2022 inventory, an assessment was made leading to a write down in 

the value of 2022 inventory and the write-off of volume that was deemed unusable.

 x The write-off of the Group’s goodwill balance of $26 million following an impairment review at the half year-end in addition to a  

$4 million bearer plant write-off caused by flood damage at various orchards;

 x The Value-Add result was impacted due to processing the lower quality 2022 stock which slowed down the operational 

performance of the plant. Additionally, due to lower almond prices the sales price of finished goods continued to decline. Both 
factors negatively impacted margins;

 x Higher corporate costs as a result of a number of independent reviews conducted across the Company’s operations to outline 

opportunities to improve performance and returns. Additionally, the Company had to close out a number of 2023 hedge positions 
due to the lower 2023 crop outcome; and 

 x Higher interest costs incurred due to higher external debt levels. 

24

SELECT HARVESTS ANNUAL REPORT 2023DIRECTORS’ REPORT
(CONTINUED)

Interest Expense
Interest expense of $10.2 million reflects the higher interest rates applicable to current finance facilities and higher average debt levels 
due to the lower 2023 crop volume, continued lower than average global almond prices and a reduced product quality mix profile.

Consolidated Statement of Financial Position
Net assets as at 30 September 2023 are $411.5 million, compared to $520.3 million as at 30 September 2022. This reduction is due to 
lower net working capital (resulting from cash improvement initiatives and a lower 2023 crop) and the write-off of goodwill ($26 
million) at the half year-end. Net working capital has decreased by 33.5% mainly due to the reduction in inventory on hand as the 
Company actively sold its inventory. Additionally, the Company has focussed on increasing the velocity of its sales program during the 
financial year. Trade and other receivables have reduced due to a focus on reducing customer terms and automation of required 
documents, particularly for export shipments. Similarly, trade and other payables have increased as the Company has increased its 
payment terms across a number of suppliers.

Trade and other receivables

Inventories

Biological assets

Trade and other payables

Net working capital 

FY2023  
$000’s

47,489

85,317

70,557

(69,674)

133,689

FY2022  
$000’s

57,094

141,056

61,198

(58,279)

201,069

Cash flow and Net Bank Debt 
Total net debt as at 30 September 2023 was $190.2 million (30 September 2022 was $134.5 million), with a gearing ratio (total net debt 
excluding lease liabilities)/equity) of 46.2% (30 September 2022: 25.9%). The increase in borrowings is a result of the reduced 2023 
crop leading to a lower volume export sales program and the continuing low global almond price environment (leading to 12 months of 
sales receipts at $6.42/kg). This was partially offset by management initiatives to improve cash velocity including customer and 
supplier terms.

Operating cash outflows incurred for FY2023 amounted to $8.2 million (2022: Inflow of $26.8 million). This adverse result was due to 
operational costs being higher than the sales receipts for the year due to the low volume of the 2023 crop and lower quality profile of 
the remaining 2022 crop, more than offset by fixed costs related to growing, processing and leasing costs. This result was further 
hampered by low global almond pricing during the period. The Company delivered a positive operating cashflow of $18.6 million for 
the second half.

Investing cash outflows of $26.2 million were $9.4 million lower than FY2022. The Company consciously reduced its capital spend in 
the operating environment. Additionally, as the Company’s orchard profile is close to full maturity, costs related to tree development 
(i.e. capital costs allocated to immature trees) have reduced. 

Dividend payments for the year were lower as the final dividend payment relating to the FY2022 result (paid in FY2023) was lower 
than the FY2021 final dividend paid. Net cash outflow (operating cash, less investing cash, less dividends, less lease principal 
payments) for FY2023 was $55.7 million which was funded through an increase in bank debt.

Dividends
Due to the Company’s recorded loss, no dividend has been declared for the financial year. This compares to a total dividend of 2 cents 
per share declared for the previous financial year. 

25

SELECT HARVESTS ANNUAL REPORT 2023DIRECTORS’ REPORT
(CONTINUED)

Sustainability
Sustainability is embedded within our business strategy. Select Harvests recognises the United Nations Brundtland Commission 
definition of sustainability, which is defined as ‘meeting the needs of the present without compromising the ability of future 
generations to meet their own needs’. 

Sustainability is complex and interdisciplinary, requiring decision making that is economically viable, ecologically sound, and socially 
just. We seek to create value for our shareholders and consider the triple bottom line: the profit we generate from our products, the 
planet we all live on and the people we rely on to be successful. 

To deliver on our vision and goal, we have framed our approach to sustainability around three pillars. 
 x Our product: we are committed to supplying high quality, safe, traceable plant-based food that is better for you, while contributing 

to a circular economy. 

 x Our planet: we are committed to responsible stewardship of natural resources, reducing our emissions, and building a business 

that is adapted to climate change and resilient to climate related shocks and stresses. 

 x Our people: we are committed to providing a safe workplace, with a ‘zero harm’ goal, promoting a culture of wellbeing, diversity 

and inclusion, attracting high performing talent and contributing to the communities in which we operate. 

Our approach to sustainability supports the global effort to achieve the United Nations Sustainable Development Goals. 

Every year we review what’s material across our three pillars to identify emerging impacts, risks, and opportunities – to prioritise 
action. We consider material topics which have, or could have, significant impacts on the economy, environment, and people, as 
outlined in the Global Reporting Initiative Standards 2021 and the SASB Standards for our sector. We also consider potential risks and 
opportunities for our business relating to our material topics, consistent with the IFRS Sustainability Disclosure Standards. 

We are committed to the continual improvement of sustainability performance, and report progress in our accompanying 
Sustainability Report 2023. 

Environmental regulation 
Select Harvests is subject to environmental regulations under various federal, state and local laws relating predominantly to the use of 
water and air and noise emission levels. We are also subject to conditions of licences and permits related to our operations (such as 
those for our biomass power station and manufacturing compost). Select Harvests was not in breach of any environmental 
regulations during the reporting period. 

Select Harvests reported under the National Greenhouse and Energy Reporting (NGER) scheme, established by the National 
Greenhouse and Energy Reporting Act 2007, for the first time this year. We have a commitment to be carbon neutral by 2050. 

Governance
The Board of Select Harvests is responsible for the overall corporate governance of the Company, including the consideration of 
climate-related risks and opportunities. 

The Board Sustainability Committee, comprising members of the Board of Directors, is responsible for providing oversight of our 
sustainability strategy, considering climate-related risks and opportunities, and ensuring accountability for targets and timelines set, 
including reporting. 

The Audit and Risk Committee is responsible for the oversight of the Company’s overall risk management framework and risk appetite, 
including internal compliance and control systems. 

The Remuneration and Nomination Committee is responsible for setting and approving compensation framework for the Company’s 
Directors, Executives and staff. The Committee meets at least four times a year and consists of at least 3 independent directors.

26

SELECT HARVESTS ANNUAL REPORT 2023DIRECTORS’ REPORT
(CONTINUED)

Business Risks
There are various risks that could have an impact on the achievement of the Company’s strategies and future performance. 

Set out in the table below are the risks that the Company considers having the greatest possible impact to the business and an outline 
of what the Company is doing to mitigate these risks. 

FY2023 was another extraordinary year for the Company with a third consecutive La Nina weather pattern giving rise to weather 
volatility impacting both harvest yield, quality and increasing pest and disease pressures. With the impact of geopolitical tensions and 
uncertainty, global inflation is continuously monitored and where possible managed for its resulting impact on key supply inputs (i.e. 
fertiliser, etc) across the Company. 

Description

Mitigation

Risk

People Safety

Food Safety 
(including product quality, utilities 
supply and major equipment failure).

Foreign Currency Fluctuations

The majority of the Company’s employees work 
within farm or processing related environments. 

The Carina West Processing Facility is a major 
operating plant that handles the end-to-end 
process for all of the Company’s almond and 
bio-mass inventory. 

In addition to the potential harm to any worker, 
the occurrence of a workplace incident has the 
potential to harm both the reputation and 
financial performance of the Company.
The Company’s almond products move to the 
end consumer through various channels. Quality 
issues, product contamination or public health 
issues could damage the Company’s reputation 
which could adversely impact the Company’s 
financial performance. 
The global almond price is determined by the US 
market in US Dollars. Given the majority of the 
Company’s sales are transacted in US dollars, 
the Company’s profitability could be negatively 
impacted by movements in the USD/AUD 
foreign exchange rate.

Almond Price Decrease

A key sensitivity to the Company’s earnings is its 
exposure to the almond price which is 
determined by the US market.

Cyber security

The Company has numerous IT infrastructure, 
systems and processes to support the operation 
and growth of the business. Should such 
infrastructure, systems and processes fail or 
become compromised then there is a risk that 
sensitive or personally identifiable data is 
accessed or stolen, data is lost, or data and 
systems are unable to be accessed which may 
result in reputational damage, legal penalties 
and ongoing disruptions to operations. 

Policies and procedures are designed and 
are in place in order to minimise the risks 
of injuries occurring.

Key operating procedures, ongoing capital 
maintenance, engineering reviews and 
proactive maintenance are mitigating 
actions in place to minimise the risk of a 
safety event (e.g. fire).

Quality testing procedures are in place at 
each of the Company’s processing stages. 
Additionally, the Company’s facilities are 
subject to numerous independent and 
customer audits to ensure required 
standards are met.
A Treasury and Risk Management policy is 
in place that ensures the Company’s 
foreign exchange exposure is managed in 
accordance with the crop growing and 
sales cycle. Additionally, a Treasury 
Committee meets monthly to monitor and 
assess the Company’s foreign exchange 
exposures. 
The Company aims to mitigate this risk by 
maintaining contact with key industry 
bodies in the US and major traders and 
customer in key export markets. Crop sales 
plans are developed each year taking into 
account pricing factors that impact 
industry supply and demand. In addition, 
extensive global marketing and consumer 
demand drivers get monitored and 
considered along with global food 
consumption trends.
The Company implements various 
strategies to mitigate cyber risk across its 
applications, networks and websites. The 
Company focusses on employee 
education, network defence, enterprise 
wide testing, disaster recovery and 
segregation of sensitive data. These 
strategies are internally and externally 
periodically reviewed, audited and 
updated. 

27

SELECT HARVESTS ANNUAL REPORT 2023DIRECTORS’ REPORT
(CONTINUED)

Business Risks (continued)

Risk

Description

Mitigation

Adequate water supply and cost

Inadequate supply of good quality water, 
whether due to drought or otherwise, and 
fluctuating temporary and permanent water 
prices could impact the Company’s profitability 
and operations. Additionally, given increased 
demand and decreased supply together with the 
entrance of non-water users, the cost of water 
could continue to increase and affect the 
Company’s profitability.

Major Facility catastrophe

A major catastrophic event at the Company’s 
Carina West Processing facility including fire/ 
flood or critical equipment failure, resulting in an 
extended shut down or loss in product could 
have a significant impact on the Company’s 
financial performance. 

Security of Bee Supply

The inability of the Company to secure an 
adequate quality and quantity of bees for 
pollination of its almond trees could have a 
significant impact on its crop yield and financial 
performance. 

The Company has a balance of owned, 
leased and spot market temporary water. 
When commercially viable, the Company 
also invests in permanent water rights in 
order to manage price and deliverability. 

The Company has developed a pricing and 
supply financial model to guide purchase 
timings and price.

The Company further proactively forecasts 
water usage and availability, and maintains 
a focus on reducing water usage in 
growing its crops through continuous 
investment in water efficient technology. 

Following a detailed strategic review the 
Company, when practical will increase the 
percentage of water it owns.
To minimise the impacts from a major 
disruption event, the Company has a Crisis 
Management Plan which includes a 
strategy to be followed in the event of a 
crisis, as well as establishing roles, 
responsibilities and key activities to be 
undertaken to effectively manage any type 
of crisis at the Carina West Processing 
facility. 

The Company also reviews and continually 
assess the adequacy of its insurance cover 
in place. 
The Company continuously engages with 
the bee keeping industry, the Almond 
Board and state governments in order to 
monitor and assess potential risks of 
supply of bees (i.e. bee disease, etc.). 

The Company also completes post season 
analysis of beekeeper performance in 
order to ensure adequate bee supply 
numbers are contracted for future crop 
seasons. During season monitoring of 
movement of bee keepers within the 
industry is also carried out in order to 
ensure adequate supply volumes in future 
seasons. 

28

SELECT HARVESTS ANNUAL REPORT 2023DIRECTORS’ REPORT
(CONTINUED)

Business Risks (continued)

Risk

Climate and Environment

Description

Mitigation

Changes in climate (both in Australia and in the 
United States) present an operating risk to the 
Company’s business in the form of weather 
volatility, water security and crop quality which 
could have an impact on the Company’s 
production assets (farm orchards) and financial 
performance. 

Risks associated with transitioning to a 
low-carbon- economy, such as government 
actions to reduce the impacts of climate change, 
may also impact the Company’s operational 
costs and performance. 

The Company’s operations are subject to various 
environmental laws and regulations, and a range 
of licences and permits are required for its 
farming and processing operations. If the 
Company becomes responsible for any breach 
of any of its licences or permits, the Company 
may incur substantial costs, its operations may 
be interrupted and it may suffer reputational 
damage. 

Disruption Event

Broader disruption events such as a global 
Pandemic, global conflicts in key strategic 
regions, geopolitical changes or general 
prolonged supply chain disruptions could have 
the potential to have a significant impact on the 
Company’s operations.

The Company’s diversification of assets 
across Australia is a key strategy in 
minimising the impact of physical risk of 
climate change. This is in addition to 
continually improving water security and 
management practices, investing in new 
water and farming technologies, 
prioritising the use of integrated pest 
management and adopting the use of 
renewable energy sources. 

The Company’s Board Sustainability 
Committee oversees strategies relating to 
horticulture innovation, with one of its 
areas of focus being the Company’s 
adaptation to the impacts of climate 
change. The Company utilises the TCFD 
framework as a tool to aid the analysis of 
the impacts of climate change and is 
continually developing and implementing 
strategies to manage the risk. 

The Company continues to assess 
additional ways to reduce its 
environmental impact, including measures 
across its business to improve water usage 
efficiency and chemical usage. 

The Company also continually reviews its 
operations to identify ways in which it can 
minimise the environmental impact of its 
operations. 
The Company maintains a diverse supplier 
base both domestically and internationally. 
Additionally, sales and distribution 
channels are varied to ensure there is not a 
reliance on any one region.

The Company is in the process of 
developing a Crisis Management Plan to 
enact in the event of a major disruption. 
This will outline a strategy to be followed 
including establishing roles, 
responsibilities and key activities if a major 
disruption event occurs.

29

SELECT HARVESTS ANNUAL REPORT 2023 
DIRECTORS’ REPORT
(CONTINUED)

Outlook FY2023
The horticultural program for the 2024 crop is underway and is on schedule with minimal weather-related disruptions. Currently, tree 
health is positive and showing signs of a strong production rebound after last season’s below average result. The trees received their 
sufficient chill hours through the dormancy period and this was followed by a good bloom period with a positive blossom cycle.

Following the easing of bee movement restrictions related to the prior period NSW varroa mite outbreak, Select Harvests received its 
full bee requirement across its orchard portfolio. The pollination period was positive with good bee flight hours recorded. The 
Australian Bee Industry has this year experience a varroa mite outbreak. On the 19th of September 2023 the Department of 
Agriculture, Fisheries and Forestry announced that the eradication of the varroa mite was no longer feasible and there will now be a 
transition to a management phase. This means it is likely that the varroa mite is imbedded within the bee industry and that beekeepers 
will need to put steps in place to manage their hives. Note that Australia is the last country globally to have the varroa mite within its 
honeybee populations.

On the 19th of September 2023 the Bureau of Meteorology declared that an El Nino weather pattern was in place. This assumes that 
conditions in Select Harvests' growing regions will be drier and hotter than average. These forecast conditions are beneficial to 
almond growing both from a volume and quality perspective.

The impact of the flood events that occurred at the start of FY2023 have been rectified. Impacted wet areas that still had productive 
trees have been managed appropriately and progressing as planned for the 2024 crop. As a result of the floods, we reviewed our 
bearer plants and took a $4.1 million write-off. 

Based on industry standard yields and the age profile of the orchards, and assuming normal growing conditions for the remainder 
season, the Select Harvests 2024 theoretical crop would be approximately 30,000MT to 32,000MT. 

Ongoing rainfall and full water catchments led to temporary water prices continuing to decrease. With sellers holding off and the 
announcement of El Nino, temporary water prices increased to close to $200 per megalitre in September 2023. Recently, prices have 
started to decline as allocation levels have been released and sellers are coming onto the market. Pricing for fertiliser and chemicals 
reduced from their FY2022 highs but not to FY2021 pricing. These pricing benefits and the benefits achieved through the Company’s 
cost initiatives have been offset with other cost increases (notably bees and labour) and FY2024 gross cost are expected to be in line 
with FY2023. 

We are forecasting the USD almond price to increase in FY2024. While the US Objective Estimate was released in July 2023 at 2.6 
Billion Pounds, the industry is expecting this volume to be lower. In addition to this, the wetter and cooler conditions in California over 
their key growing and harvest periods is leading to a poor overall quality profile. This is be exacerbated by the presence of the navel 
orange worm (causing increased insect damage). With an expected lower quality US crop and forecast improved quality 2024 crop for 
Select Harvests, we expect the ability to capitalise on higher priced inshell and quality kernel products. Levels of enquiry in key export 
markets is starting to increase indicating that demand levels are returning to pre-pandemic levels.

The Californian 2023 harvest will be completed during November 2023. The key final growing stages and harvest period have been 
adversely affected by colder and wetter than average conditions. Current indications are that the volume will be potentially less than 
the Objective Estimate with quality negatively impacted by high moisture levels and increased insect damage through a higher 
presence of the navel orange worm.

While pricing to date remains at lower than long term average levels, the past two months have shown incremental weekly increases 
particularly for inshell and higher-grade kernel. 

The Select Harvests’ team continues to focus on improving efficiency, managing costs and optimising the 2024 crop volume and 
quality. In the second half of FY2024 the Company will commence the installation of a pre-cleaner and drier. This will allow for the 
processing of almonds efficiently and deliver an improved quality profile during wetter than average seasons. 

Based on the factors above, the Company’s cashflow forecasts indicate it will operate within its current lending limits and meet its 
required covenant measures.

Other key projects currently being progressed are:

 x

Increased capacity of the Company’s Carina West processing facility – a review of the facility has been completed that has 
identified a number of areas of improvement and minor capital investment to increase the throughput of the plant by 15% – 20%. 
This increase in processing capacity will be utilised in FY2024.

 x Pre-cleaning and drying capacity – the Company will be investing in a new large scale pre-cleaner and dryer. This will ensure that 
if there is product with high moister levels it can cleaned and dried earlier in the cycle and continue to be processed efficiently and 
maintain a higher quality profile.

 x Expansion of compost production and commercialisation – the Company currently produces in excess of 40,000 tonnes of 

compost (from orchard waste, ash produced from its biomass energy plant and some external additives). This option reduces the 
requirement for fertilizer, improves soil structure and health and promotes the transfer of carbon from the atmosphere in soil. 

 x The Sustainability Report will be published in November 2023.
 x The Company continues to investigate organic and strategic growth opportunities such as: 

Increasing its level of processing capacity and sourcing of external grower volumes

 - Continued expansion in almond orchards, both greenfield and mature
 -
 - Diversification into other nuts and services
 -

Increased new product development in almond value-add processes. 

30

SELECT HARVESTS ANNUAL REPORT 2023DIRECTORS’ REPORT
(CONTINUED)

Outlook FY2023 (continued)

In summary, FY2023 was a challenging year. The materially impacted crop through a third La Nina period, in addition to a continued 
below average global pricing environment has led to a large financial operating loss. The Company has managed this period well by 
ensuring operating costs were as low as possible and cash velocity increasing. The global outlook for the almond industry and ‘better 
for you’ plant-based foods remains very strong. Select Harvests has high quality assets, a sustainable and increasingly efficient 
production profile supported by world class technology. The Company remains well placed to deliver on the opportunities that will 
arise from the demand growth globally for almonds.

Significant changes in the state of affairs
There have been no significant changes in the state of affairs of the Company.

Significant events after the balance date  
There were no significant events after balance date.

Non IFRS Financial Information
The non IFRS financial information included within this Directors’ Report has not been audited or reviewed in accordance with Australian 
Auditing Standards. Non IFRS financial information has been used as it better reflects the Company’s underlying performance.

Non IFRS financial information includes underlying EBIT, underlying result, underlying NPAT, underlying earnings per share, net interest 
expense and adjustments to reconcile from reported results to underlying results.

Dividends

Final fully franked dividend declared for 30 September 2023

 x on ordinary shares

 Cents

2023
$’000

Nil

Nil

Indemnification and insurance of directors and officers
During the year the Company entered into an insurance contract to indemnify Directors and Officers against liabilities that may arise 
from their position as directors and officers of the Company and its controlled entities. The terms of the contract do not permit 
disclosure of the premium paid. 

Officers indemnified include the Company secretary, all directors, and executive officers participating in the management of the 
Company and its controlled entities.

Committee membership
During or since the end of the financial year, the Company had the following committees that comprise members of the Board of 
Directors as follows:

Audit and Risk Committee

Remuneration & Nomination Committee

Sustainability Committee

M Somerville (Chair)
G Kingwill
T Dillon
F Bennett (Former Chair)
F Grimwade
P van Heerwaarden

G Kingwill (Chair) 
T Dillon
M Zabel
F Bennett
P van Heerwaarden

M Zabel (Chair)
G Kingwill
M Somerville
F Bennett (Former Chair)
F Grimwade

31

SELECT HARVESTS ANNUAL REPORT 2023DIRECTORS’ REPORT
(CONTINUED)

Directors’ meetings
The number of meetings of directors (including meetings of committees of directors) held during the financial year and the number of 
meetings attended by each director was as follows:

Directors’ Meetings

Meetings of Committees

Audit & Risk

Sustainability

Remuneration & 
Nomination

Number 
eligible 
to attend

Number 
attended

Number 
eligible 
to attend

Number 
attended

Number 
eligible 
to attend

Number 
attended

Number 
eligible 
to attend

Number 
attended

T Dillon

D Surveyor+

G Kingwill

M Zabel#

M Somerville^

P Thompson*

F Bennett*

12

8

12

12

10

5

5

12

8

12

12

10

5

5

4

3

4

-

3

1

1

4

3

4

-

3

1

1

-

2

4

4

2

2

2

F Grimwade*
5
1 Reflects the number of meetings held during the time the Director held office, or was a member of the Committee during the year 
+ Appointed 20 February 2023; # Appointed 3 October 2022; ^ Appointed 13 December 2022 
* Retired during the financial year

5

1

1

2

-

2

4

4

2

2

2

2

3

2

3

3

-

1

1

-

3

2

3

3

-

1

1

-

Directors’ interests in contracts
Directors held no interests in contracts during the year ending 30 September 2023.

Auditor’s independence declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 44.

Non-audit services
Non-audit services provided by the external auditor are approved by resolution of the Audit and Risk Committee and approval is 
provided in writing to the Board of Directors. The Directors are satisfied that no non-audit services were provided during the period. 
Amounts paid to PricewaterhouseCoopers are included in Note 6.4 to the financial report.

Rounding
The amounts contained in this report and in the financial report have been rounded to the nearest $1,000 (where rounding is 
applicable) under the option available to the Company under ASIC Corporations (Rounding in Financial/ Directors’ Reports) 
Instrument 2016/191. The Company is an entity to which the Class Order applies.

Proceedings on behalf of the Company
There are no material legal proceedings in place on behalf of the Company as at the date of this report.

Corporate Governance
In recognising the need for the highest standards of corporate behaviour and accountability, the directors of Select Harvests support 
and have adhered to the ASX principles of corporate governance. The Company has previously adopted Listing Rule 4.10.3 which 
allows companies to publish their corporate governance statement on their website rather than in their annual report. A copy of the 
statement along with any related disclosures is available at: http://www.selectharvests.com.au/governance.

This report is made in accordance with a resolution of the Directors.

T Dillon
Chairman

Melbourne, 24 November 2023

32

SELECT HARVESTS ANNUAL REPORT 2023 
 
REMUNERATION REPORT

Introduction from the Chair of the Remuneration Committee
On behalf of the Board, I am pleased to present the 2023 Remuneration Report, marking my second year as Chair of the Board 
Remuneration and Nomination Committee. The past year has presented a series of challenges and notable events for the Select 
Harvests team. Local and global factors have continued to impact our business, our people, and our communities. Despite the 
challenging operating environment we’ve faced over the past year, the resilience demonstrated by our staff and the communities in 
which they operate have been remarkable. As we enter a new phase of leadership our commitment remains focused on the safety and 
well-being of our staff and continued dedication to being a respected member of the local communities in which we operate. 

The objective of Select Harvests’ remuneration strategy is to attract, retain and motivate the people we require to drive forward 
business improvement and growth opportunities. Executive remuneration packages include a balance of fixed remuneration, short 
term cash incentives and long-term equity incentives. The framework endeavours to align executive reward with market conditions 
and shareholders’ interests.

Fixed remuneration is aligned to the market mid-point for similar roles in comparable companies. 

The health and well-being of our people remains the paramount priority for the business, with the short-term incentive payments 
conditional on the foundations being in place for a safe work environment, evidenced through our tollgates and an increase in 
percentage on our safety KPI. It is essential that we continue to demonstrate and build on our strong safety culture and our values. 

The short-term incentive program is based on annual performance and is evaluated against key performance indicators (KPIs) with 
financial, individual and operational targets. The performance targets are based on the annual business plan and set at a level that 
allows for a 50% payout on achieving a challenging yet realistically attainable level of performance. The maximum payout is only 
realised when an exceptional level of performance is demonstrated across all KPIs. In addition to KPIs for their respective business 
units and areas of direct responsibility, all Key Management Personnel (KMP) share a company NPAT and Safety KPI to encourage a 
strong executive team dynamic and cross business unit collaboration. 

Setting KPIs for agriculture dependent business presents a challenge due to various factors such as climatic conditions, commodity 
prices and exchange rates having a significant effect on results. While management can to some degree mitigate these “agricultural 
risks” and should be encouraged to do so, there are elements out of our control. The Board retains some discretion in evaluating 
overall performance and taking into account operating conditions. KMP STI vesting levels ranged from 25% to 41% of the maximum 
opportunity. 

The FY2023 long-term incentive plan has been adjusted to focus on two key areas that relate to the delivery of strategic sustainable 
growth in shareholder value over the medium and longer terms. These are:
 x 50% weighting to Absolute TSR (CAGR) over the performance measurement period (range between 5% and 20%)
 x 50% weighting to Pre-Tax Average ROCE over the measurement period (range between 7.0% and 14.0%)
In the context of prior period vesting assessment, based on historical performance metrics, the Total Shareholder Return (TSR) for the 
preceding three-year performance period registered a negative 24.2%. This placed the Company at the 30th percentile within its peer 
group and, consequently, no rights vested.

The remuneration outcomes resulting from the FY2023 performance are set out in this Remuneration Report.

Guy Kingwill
Chair – Remuneration and Nomination Committee 
The report has been prepared and audited against the disclosure requirements of the Corporations Act 2001 (Cth). 

33

SELECT HARVESTS ANNUAL REPORT 2023REMUNERATION REPORT
(CONTINUED)

1. KEY QUESTIONS

What are our remuneration objectives and guiding principles?

Objective: To deliver sustainable returns as a leader in “better for you” plant based foods
Principles Align management 

and shareholder 
interests

Deliver competitive 
advantage in 
attracting, motivating 
and retaining talent

Encourage a diverse 
workforce

Simple, easily 
understood, rewarding 
performance and 
creating a culture that 
delivers shareholder 
value

Reflect our values of:
 x Safety
 x Trust & Respect
 x
Integrity & 
Diversity
 x Sustainability
 x Performance
 x
Innovation

How is our remuneration structured?
The table below provides an overview of the different remuneration components within the framework. 

Objective:
Remuneration 
Component
Purpose

Attract and retain the best talent
Total Fixed Remuneration (TFR)

Reward current year performance 
Short Term Incentive (STI)

TFR is set in relation to the external 
market and takes into account:
• Size and complexity of the role
• Individual responsibilities

STI ensures appropriate 
differentiation of pay for performance 
and is based on business and 
individual performance outcomes

Delivery

Base salary, superannuation and 
salary sacrifice components based 
on total cost to the Company

Annual cash payment

FY23 Approach Target TFR positioning is Median of 
Comparator Group 

Comparators: ASX Listed Food and 
Agribusiness Companies 

STI Performance Measures1.
 x NPAT (40% - 50%)
 x Safety Performance (10%) 
 x Personal & Operational 

performance (15% - 25%)

 x Board discretion (15%)
 x With a safety behaviour and 

values tollgate 

Reward long term sustainable 
performance 
Long Term Incentive (LTI)

LTI ensures alignment to long-term 
overall company performance and is 
consistent with:
 x Profitable growth 
 x Long-term shareholder return
Performance rights (after the end of 
the performance period once the 
vesting conditions have been tested, 
generally in December)
LTI Performance Measures 
 x Absolute TSR (50%)
 x ROCE (50%)
 x Holding Lock
 x The participant’s minimum 

holding is equal to 50% of their 
fixed annual remuneration

 x Clawback conditions 
 x For fraud or dishonest conduct 
and breach of obligations to the 
Company 

Who and how much did you pay your Key Management Personnel for the financial year (non IFRS)? 
Key Management Personnel (KMP), as defined, encompasses individuals with the authority and responsibility for planning, directing, 
and overseeing an entity's activities, whether directly or indirectly, including any Director, whether executive or non-executive, of that 
entity. This year, a comprehensive review of KMP was conducted to ensure that KMP reporting aligns with the definition. 
Consequently, there has been a reduction in the number of KMP, and our reporting now includes those who are responsible for 
governing and overseeing the activities of our entity.

34

SELECT HARVESTS ANNUAL REPORT 2023REMUNERATION REPORT
(CONTINUED)

The table below presents the remuneration paid to, or vested for, MD and Other KMP for the financial year.

Name and Role
D Surveyor 
Managing Director (MD) and  
Chief Executive Officer
Brad Crump 
Chief Financial Officer and  
Company Secretary
Ben Brown 
General Manager (GM) 
Horticulture
D Wilson 
GM Almond Operations
P Thompson 
Managing Director and Chief 
Executive Officer

Term as KMP
Part year*

Total Fixed 
Remuneration
$
662,626

STI Achieved1
$
193,366

Vested 
Performance 
Rights2
$
-

Full Year

449,467

78,459

Full Year

381,715

46,084

Full Year

314,563

68,233

Part year^

324,542

-

-

-

-

-

Total
$
855,992

527,926

427,799

382,796

324,542

* Appointed 20 February 2023; ^ Retired on 3 March 2023

1.   STI will be paid after the FY2023 financial statements have been approved. 

2.  The vested performance rights value in this table has been determined using the closing share price on the last trading day of FY23. Vesting occurs after the finalisation 
and approval of the FY2023 financial statements and hurdle testing is completed by an independent expert. Sale of shares emanating from vested performance rights 
under the current plan are subject to a holding lock which requires Executive KMPs to accumulate and hold a value equivalent to 50% of their annual TFR.

When is remuneration earned and received?
The remuneration components are structured to reward executives progressively across different timeframes. The diagram below 
shows the period over which FY2023 remuneration was received and when the awards was granted and vested.

TFR

STI

LTI

AGM

MONTHLY

Date paid (generally in January after the end of financial year)

Date granted

Vesting date

Performance Period

F Y20

F Y21

F Y22

F Y23

F Y24

What is the remuneration mix for Key Management Personnel? 
The remuneration mix for KMP is balanced between fixed and variable remuneration.

 x Non-Executive Director: 100% of remuneration is fixed remuneration 
 x MD: 44% of remuneration is performance-based pay and Nil% of remuneration is delivered as performance rights to shares
 x Other KMP: 30% of their remuneration is performance-based pay and 10% of their remuneration is delivered as performance rights 

to shares

Non-Executive Director

Total Fixed Remuneration

Potential total remuneration
Actual payout of potential  
total remuneration

100%

100%

MD

Total Fixed Remuneration

Performance Dependent

Potential total remuneration
Actual payout of potential  
total remuneration

56%

56%

Maximum STI 44%

Maximum LTI 

16%

N/A

Other KMP

Total Fixed Remuneration

Performance Dependent

Potential total remuneration
Actual payout of potential  
total remuneration

60%

60%

Target STI 30%

Maximum LTI 10%

10%

0%

35

SELECT HARVESTS ANNUAL REPORT 2023REMUNERATION REPORT
(CONTINUED)

STI payments are based on a maximum of 80% for the MD and 50% for other Executive KMP of the fixed remuneration, with 
maximum payment on achievement of a stretching but achievable target, with regard to past and otherwise expected achievements.

LTI grants are at face value, where face value represents the share pricing at 30 September 2023. 

What performance rights were granted for year ended 30 September 2023? 
Equity was granted to the MD and Other KMP in FY2023, as detailed in the table below. The methodology used for the allocation was 
determined using the face value of full vesting based on the Volume Weighted Average Price (VWAP) over the 10 days preceding the 
date of 27 February 2023 Annual General Meeting.

MD

David Surveyor 

P Thompson^

Other KMP

Brad Crump – CFO & Company Secretary

Ben Brown – GM Horticulture

Dan Wilson - GM Almond Operations

^ Retired 03 March 2023

Number of Performance 
Rights granted

261,191

Nil

56,511

46,389

38,345

Face Value

$1,026,481

Nil

$222,088

$182,309

$150,696

Is there alignment between management and shareholder interests? 
The Board's decision to give KMP's a higher STI in 2023 is a strategic move to better align management with shareholder interests. 
This acknowledges the complexity of executive roles and emphasises a performance-focused culture that directly benefits the 
Company and its shareholders in the long run. The Board is confident that this compensation structure strikes the right balance 
between risk and reward, enhancing shareholder value through leadership and strategic execution.

100%

80%

60%

40%

20%

0%

100

80

60

40

20

-

(20)

(40)

(60)

(80)

(100)

(120)

(140)

F Y19

F Y20

F Y21

F Y22

F Y23

STI VESTING % OF 
MA XIMUM DOLL AR RHS

BASIC EARNINGS PER 
SHARE (CENTS) LHS

REPORTED NPAT ($’m) LHS

2. MD AND OTHER KMP REMUNERATION

2.1 How STI outcomes are linked to performance
At the commencement of each annual operating cycle the Board sets KPIs for the MD and the MD sets KPIs for the KMP with target 
levels of performance based on the Board approved annual operating plan. At the end of the operating cycle the Board assesses 
actual performance against these KPIs based on full year final financial and operating results and metrics. Actual performance against 
reported results and related metrics determines the STI reward.

The FY2023 financial and operating results and related metrics resulted in KMP STI rewards as a percentage of TFR of 21.4%. This 
evaluation reflects a company that experienced financial challenges. Nonetheless, the individuals showed dedication to minimise the 
loss and implement improvements through a challenging year.

36

SELECT HARVESTS ANNUAL REPORT 2023REMUNERATION REPORT
(CONTINUED)

2.2 Overview of FY2023 remuneration framework

Fixed Remuneration
Base salary

Consists of cash salary, superannuation and salary sacrifice arrangements based on total cost to the Company.
Reviewed annually with reference to the market median for comparable companies, the individual’s performance 
and potential and the Company’s future plans. 
There is no guaranteed base pay increase in any executive contract.

Short Term Incentive (STI) 
Opportunity

% of Fixed Remuneration

MD 
Unsatisfactory - 0% 
Threshold – up to 20% 
Target – up to 40% 
Maximum – up to 80%

Other KMP 
Unsatisfactory - 0% 
Threshold – up to 7.5-12.5% 
Target – up to 15-25% 
Maximum – up to 50%

Purpose

Term

Instrument
Performance 
and measures

Why these 
were chosen 

To provide incentive to exceed the annual business objectives. 

1 year

Cash
KPI Score Card 
•  Company NPAT 
•  Safety Performance 
•  Personal & Operational 
   performance/ Project delivery 
•   Board discretion 
With a safety behaviour and values tollgate 

MD 
50% 
10% 

25% 
15%

Other KMP 
40% - 50%  
10% 

25-35%  
15%

To provide a balance between outperforming the annual operating plan, individual business unit plans, focus on the 
efficient use of capital and strengthening the balance sheet, on time and budget delivery of strategic projects and 
sustained orchard productivity.
The Board retains some discretion to adjust the outcomes based on whether they were influenced by 
uncontrollable “headwinds” or “tailwinds” and the degree to which behaviours reflect our values.
The health and well-being of our people remains paramount and no incentive is paid if the foundations for a safe 
work environment were not maintained.

Long Term Incentive (LTI)
Opportunity

% of Fixed Remuneration

MD 
Face Value – up to 160%

Other KMP 
Face Value – up to 50%

Purpose

Term

Instrument
Performance 
conditions*

Why these 
were chosen

Reward achievement of long-term business objectives and sustainable value creation for shareholders.

3 years, vesting at the end of the period.

Performance rights

1. Continuing service

2. Positive absolute shareholder return
3. 50% based on Absolute Total Shareholder Return compound average growth rate (CAGR) over the performance 
measurement period.
The performance targets and vesting proportions are as follows: 

Nil 
Pro rata vesting 
50% 
Pro rata vesting 
100% 

•  Below 5% 
•  >5% and <10% 
•  Target of 10% 
•  >10% and <20% 
•  At or above 20%
4. 50% based on Pre-Tax Return on Capital Employed over the performance measurement period.
The performance targets and vesting proportions are as follows:
•  Below 7.0%  
•  Between 7.1% and 9.8% 
•  Target of 9.8%  
•  Between 9.8% and 14.0%  
•  At or Above 14.0% 
-  TSR provides a shareholder perspective of the Company’s relative performance against comparable companies 
-  ROCE focusses management on the effective allocation and efficient use of the Company’s capital assets

Nil 
Pro rata vesting 
50% 
Pro rata vesting 
100% 

*The Remuneration and Nomination Committee is responsible for assessing whether the targets are met and in doing so obtains the advice of an independent expert.

37

SELECT HARVESTS ANNUAL REPORT 2023 
 
REMUNERATION REPORT
(CONTINUED)

Other
Hedging policy 

Clawback

Minimum shareholding 
requirements

Individuals cannot hedge Select Harvests equity that is unvested or subject to restrictions. 

The Board may determine that any unvested share rights will lapse or be forfeited in certain 
circumstances such as in the case of fraud, wilful misconduct or dishonesty. 
Vested performance rights are to be held until the accumulated value is equal to 100% base 
salary. 

The safety behaviour and values tollgate, which requires maintenance of a safe work environment, was passed.

The individual KMP actual STI payments and potential maximum payments are set out in the following table in section 2.3.

2.3 What we paid to MD and Other KMP in FY2023 – Further detail

The following pages compare the maximum potential and actual remuneration for the financial year ended 30 September 2023 for 
current KMP. Amounts include:
 x Total fixed remuneration
 x STI achieved as a result of business and individual performance (versus the maximum potential STI)
 x Share performance rights that vested during the year at face value (versus the maximum initial award face value) for the 

performance testing period concluding in that year.

This information differs from the statutory remuneration disclosures presented in Section 5.1 (which are presented in accordance 
with the accounting standards) as the performance rights value is based on the closing share price on the day the tranche of 
performance rights were approved. The directors believe that the remuneration received is more relevant to users for the following 
reasons:
 x The statutory remuneration expensed is based on historic cost and does not reflect the value of the equity instruments when they 

are actually received by the KMPs

 x The statutory remuneration shows benefits before they are actually received by the KMPs

Key Management Personnel  
(KMP)

D Surveyor+
MD & CEO

Brad Crump 
Chief Financial Officer and  
Company Secretary

Ben Brown 
General Manager (GM)  
Horticulture

D Wilson
General Manager Almond 
Operations

P Thompson*
Managing Director & CEO

Actual Remuneration 2023

Maximum Potential 2023

Actual Remuneration 2023

Maximum Potential 2023

Actual Remuneration 2023

Maximum Potential 2023

Actual Remuneration 2023

Maximum Potential 2023

Actual Remuneration 2023

Maximum Potential 2023

Total Fixed 
Remuneration 
$’000

Short Term 
Incentive 
$’000

Performance 
Rights 
$’000

662

662

449

449

382

382

315

315

325

325

193

530

78

225

46

191

68

158

-

260

-

-

-

92

-

77

-

37

-

383

Total 
$’000

855

1,192

527

766

428

650

383

510

325

968

+ Joined 20 February 2023; * Resigned on 3rd March 2023

2.4 FY2024 Outlook
The Remuneration and Nomination Committee and Board continue to review our remuneration strategy:

 x The 2024 STI KPIs focus on priorities and outcomes budgeted for as part of annual business plans, maintaining the focus on safety, 

financial metrics, cost of production and culture. 

 x Our LTI performance rights are allocated annually, ensuring closer alignment to current strategic plans and financial targets. 
 x The focus of LTI moves to delivery of strategic sustainable growth in shareholder value over the medium and longer terms. 

Performance metrics: Absolute TSR (50% weighting) and absolute ROCE (50% weighting).

38

SELECT HARVESTS ANNUAL REPORT 20232019

53,022

55.5

3,552%

32.0

5.32

2.37

7.69

51%

2019

55.5

55.5

REMUNERATION REPORT
(CONTINUED)

2.5 Long Term Performance Perspective
The following table provides the performance outcomes over a five year period which align to the STI and LTI outcomes for Executive 
KMP.

Net (loss)/profit after tax ($’000)

Basic EPS (cents)

Basic EPS Growth

Dividend per share (cents)

Opening share price 1 Oct ($)

Change in share price ($)

Closing share price 30 September ($)

TSR % p.a.+

2023

(114,727)

(94.8)

(2,531%)

-

5.26

(1.25)

4.01 

(24%)

Year ended 30 September

2021

15,116

12.7

(51%)

8.0

5.57

2.72

8.29

50%

2020

25,001

26.0

(53%)

13.0

7.69

(2.12)

5.57

(26%)

2022

4,759

3.9

(69%)

2.0

8.29

(3.03)

5.26

(36%)

+ TSR is calculated as the change in share price for the year plus dividends announced for the year, divided by opening share price

Vesting of performance rights is based on performance against the hurdles over the three years prior to vesting. 

The following illustrates the Company’s performance against the criteria in the LTI plan.

EPS Growth

Basic EPS (cents)

Underlying EPS (cents)

3 Year EPS CAGR
3 Year EPS CAGR target 5% - 20%  
Percentage vested

2023

(94.8)

(73.3)

Year ended 30 September

2022

3.9

3.2*

2021

12.7

18.0*

2020

26.0

26.0

(241.3%)

(61.4%)

(7.5%)

24.9%

11.9%

0%

0%

0%

100%

73%

Note: From next year onwards, the Company’s performance will be measured using Return on Capital Employed (ROCE)
* Underlying EPS is adjusted for the impairment of goodwill (FY23) and loss on sale of the Consumer Brands and restructuring costs for the Thomastown site (FY2022 and 
FY2021). Please refer to note 3.7 and 5.4 within the Consolidated Financial Statements for more information.

Year ended 30 September

Relative TSR Performance*

2023

2022

2021

2020

2019

SHV 3 Year TSR %

SHV 3 Year TSR Ranking

(24.2%)
28th  
percentile

(28.42%)
30th  
percentile

64.3%
93rd  
percentile

24.5%
62nd  
percentile

22.8%
29th  
percentile

Peer group 3 Year Median TSR

21.4%

(8.4%)

(5.8%)

20%

50%

SHV Rank against peer group

40 out of 55

41 out of 58

2nd out of 16

6th out of 14

11th out of 15

Percentage vested

0%

0%

100%

73%

0%

* TSR ranking relative to ASX Consumer Staples also included in the All Ordinaries index.

2.6 Terms of KMP Service Agreements
Remuneration and other terms of employment for the KMP are formalised in service agreements. These service agreements set out 
the base salary arrangements and future review. Each of these agreements provide for participation in a Short Term Incentive Plan 
and a Long Term Incentive Plan.

Other significant provisions of the agreements are that the term is on-going with a 6 month notice period for the MD and 6 months 
notice period for Other KMP.

Other than the notice periods, there are no specific termination benefits applicable to the service agreements.

39

SELECT HARVESTS ANNUAL REPORT 2023REMUNERATION REPORT
(CONTINUED)

3. NON-EXECUTIVE DIRECTORS’ ARRANGEMENTS
On appointment to the Board, all Non-Executive Directors enter into a service agreement with the Company in the form of a letter of 
appointment. The letter summarises the Board policies and terms, including compensation, relevant to the office of Director. On 1st 
November 2023, P van Heerwaarden joined the Board as a non-executive Director.

Non-Executive Directors receive fees (including statutory superannuation) but do not receive any performance related remuneration 
nor are they issued options or performance rights on securities. This reflects the responsibilities and the Group’s demands of 
directors. Non-Executive Directors’ fees are periodically reviewed by the Board to ensure that they are appropriate and in line with 
market expectations.

Non-Executive Directors’ professional development is supported and funded through the Company’s training budget. There is no 
equity ownership requirement for Non-Executive Directors. Directors are encouraged to acquire and hold shares equivalent in value 
to their annual fees.

The current aggregate fee limit of $973,750 was approved by shareholders at the 25 February 2022 Annual General Meeting. For the 
FY2023 year, the total amount paid to Non-Executive Directors was $693,665.

The remuneration is a base fee with the Chair of each of the Committee receiving additional fees commensurate with their 
responsibilities. The current directors’ fees are as follows:

Current Base Fees (including superannuation)

Chair

Other Non-Executive Directors

Additional Fees (including superannuation)

Chair of the Audit and Risk Committee

Chair of the Remuneration and Nomination Committee

Chair of the Sustainability Committee

4. GOVERNANCE

$252,216

$109,737

$14,633

$14,633

$14,633

4.1 Role of the Remuneration and Nomination Committee
The Remuneration and Nomination Committee operates under its own Charter and reports to the Board. The Charter was approved 
on 4 October 2022 by the Board. A copy of the Charter is available on the Company’s website: www.selectharvests.com.au

4.2 Use of Remuneration Advisors
During the financial year ended 30 September 2023, no remuneration advisors were engaged. This assessment occurs on a biannual 
cycle.

4.3 Share Trading Policy
The Share Trading Policy was last reviewed by the Board in May 2023. A copy is available on the Company’s website:  
www.selectharvests.com.au

Under the policy senior executives may not hedge Select Harvests equity that is unvested or subject to restrictions. 

4.4 Loans and Other Transactions to Directors and Executives
There were no loans outstanding at the reporting date to Directors and executives. There have been no other transactions with 
Directors and executives.

40

SELECT HARVESTS ANNUAL REPORT 2023REMUNERATION REPORT
(CONTINUED)

5. KMP STATUTORY DISCLOSURES

5.1 Details of FY2023 and FY2022 Remuneration
Remuneration of Directors and other KMP of Select Harvests.

Short Term

Post 
Employment 
Benefit

Long Term

Other

Base Fee 
$

FY

Short 
Term 
Incentives 
$

Non 
Cash 
Benefit 
$

Superannuation  
ContributionsN 
$

Leave 
Entitlement 
Expense 
$

Performance 
Rights 
Granted 
$

Other
$

Total 
$

Non-Executive Directors
T Dillon+

2023

G Kingwill

M Zabel++

M Somerville+++

F Grimwade^

F Bennett^

M Iwaniw^^

N Anderson^^^

Executive Director
D Surveyor++++ 

P Thompson^^^^

Other KMP
B Crump

B Brown

D Wilson++

P Ross

N Feder

S Douglas*

2022

2023

2022

2023

2023

2023

2022

2023

2022

2022

2022

2023

2023

2022

2023

2022

2023

2022

2023

2022

2022

2022

2022

227,992

114,668

112,045

107,184

112,045

87,152

41,193

99,494

46,686

121,236

170,994

47,401

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

636,937

193,366

2,208

307,618

-

713,763

124,938

-

-

-

-

78,459

44,417

46,084

12,730

38,285

68,233

43,070

34,327

34,901

19,609

-

-

-

-

-

-

423,486

412,246

343,012

335,374

289,590

242,604

329,149

309,168

276,445

24,224

11,752

11,905

10,858

11,905

9,291

4,325

10,073

4,902

2,941

-

4,740

34,298

16,924

28,127

25,981

24,038

25,973

27,733

24,973

26,382

27,603

26,918

17,804

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

252,216

126,420

123,950

118,042

123,950

96,443

45,518

109,567

51,588

124,177

170,994

52,141

52,888

(17,656)2

113,798

62,6401

1,096,135

28,7282 378,6512

714,265

24,707

374,667

-

1,266,202

53,203

44,272

50,0003

-

50,487

50,000

23,579

14,181

13,768

30,371

8,515

-

-

36,413

41,589

25,959

26,256

41,708

19,787

-

-

-

-

-

-

32,114 341,0194

675,401

581,188

487,791

457,162

422,523

368,683

441,302

390,774

686,991

+ Appointed 29 November 2021; ++ Appointed 3 October 2022; +++ Appointed 13 December 2022; ++++ Appointed 20 February 2023
^ Retired 27 February 2023; ^^ Retired 30 June 2022; ^^^ Retired 25 February 2022; ^^^^ Retired 3 March 2023
* Redundancy 30 June 2022; 
1.  For D Surveyor, the amount relates to accrual of retention incentive which is payable on 25th October 2025 based on Mr Surveyor’s continued employment to this date.
2.  For P Thompson, the negative leave entitlement expense relates to annual leave taken in excess of the accrual posted during the year. The amount disclosed as “Other” 

relates to termination payment. The amount recorded in respect of share based payments is accelerated since they remain subject to meeting vesting conditions, 
notwithstanding the cessation of his employment on 3 March 2023.

3.  For B Crump, on 7 June 2022, Mr Crump was awarded a cash bonus in the amount of $100,000 payable in December 2023, subject to continuous employment. 
4.  For S Douglas, the amount relates to payment of redundancy benefit. 
N Includes salary sacrifice contribution

Notes
It should be noted that performance rights granted, referred to in the remuneration details set out in this report, comprise a proportion 
of rights which have not yet vested and are reflective of rights that may or may not vest in future years.

The elements of remuneration have been determined based on the cost to the consolidated entity.

Performance rights granted have been independently valued using the Black-Scholes-Merton model and the Monte Carlo simulation 
option pricing model, which takes account of factors such as the exercise price of the rights, the current level and volatility of the 
underlying share price and the time to maturity of the rights. The amount shown here is an accounting expense and reflects the value 
as determined using this model. The value is expensed over the vesting period of the rights.

41

SELECT HARVESTS ANNUAL REPORT 2023REMUNERATION REPORT
(CONTINUED)

5.2 Details of LTI Performance Rights Granted, Vested and Exercised
Performance rights granted to the MD and Other KMP during the year.

Number

Opening balance  
1 October 2022

Granted during  
the year

Vested during  
the year

Forfeited during 
the year

Closing balance 
30 September 
2023 
(unvested)

-

329,845

68,145

56,306

36,171

261,191

-

56,511

46,389

38,345

-

-

-

-

-

-

46,845

11,243

9,369

4,500

261,191

283,000

113,413

93,326

70,016

MD

D Surveyor

P Thompson*

Other KMP

B Crump

B Brown

D Wilson

* Resigned 3 March 2023 
P Ross and N Feder were no longer a KMP as at 1 October 2022. Their balance at that date were 56,403 and 27,058 respectively.

All vested rights are exercisable after the performance period, subject to a holding lock that requires KMP to hold shares with a value 
equivalent to their base salary.

5.3 Active Plan Performance Rights Granted 
Performance rights granted to KMPs under the LTI Plans that are relevant to FY2023 and beyond.

Grant Date
28 Jul 2021

31 May 2022

9 March 2023

7 April 2023

Vesting Conditions
 x EPS Compound 
Annual Growth 

 x Relative TSR 

performance to 
peer group

 x Continuous service
 x Holding Lock
 x Absolute TSR
 x ROCE
 x Strategy 

implementation
 x Continuous service
 x Holding Lock

 x Absolute TSR
 x ROCE
 x Continuous service
 x Holding Lock
 x Absolute TSR
 x ROCE
 x Continuous service
 x Holding Lock

Performance 
Period
1 October 2020 to 
30 September 2023

Participating 
KMPs
P Thompson
B Crump
B Brown
D Wilson

Performance Achieved
30 September 2023 
rights achieved 0% of 
EPS condition rights and 
0% of TSR condition 
rights

Vested % Expiry Date
31 October 
0%
2023

1 October 2021 to 
30 September 2024

P Thompson 
B Crump 
P Ross 
B Brown 
D Wilson

2024 period to be 
determined.

N/A

31 October 
2024

1 October 2022 to 
30 September 2025

B Crump 
B Brown 
D Wilson

2025 period to be 
determined.

1 October 2022 to 
30 September 2025

D Surveyor

2025 period to be 
determined.

N/A

N/A

31 October 
2025

31 October 
2025

The LTI Plan provides for the offer of a parcel of performance rights with a three year performance period to participating employees. 
The rights vest at the end of the period on achievement of the performance hurdles. Performance rights are granted under the plan for 
no consideration.

The plan rules contain a restriction on removing the ‘at risk’ aspect of the instruments granted to executives. Plan participants may not 
enter into any transaction designed to remove the ‘at risk’ aspect of an instrument before it vests.

42

SELECT HARVESTS ANNUAL REPORT 2023REMUNERATION REPORT
(CONTINUED)

5.4 Grants of Performance Rights 
The table details the grants of performance rights to the MD and KMP.

Rights to deferred shares

Name
D Surveyor

P Thompson

B Crump

B Brown

D Wilson

Year 
Granted

Number 
Granted

Value per 

rightN Vested %

Vested 
Number

Forfeited 
 %

Forfeited 
 Number

Financial 
years in 
which rights 
may vest

Max. value yet 
to vest

2023

2020

2021

2022

2020

2021

2022

2023

2020

2021

2022

2023

2020

2021

2022

2023

261,191

46,845

77,903

205,097

11,243

18,622

38,280

56,511

9,369

15,361

31,576

46,389

4,500

8,066

23,605

38,345

$2.96

$4.22

$6.29

$3.91

$4.22

$6.29

$3.91

$2.47

$4.22

$6.29

$3.91

$2.47

$4.22

$6.29

$3.91

$2.47

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

30-Sep-26

$387,035

100%

46,845

30-Sep-23

-

-

-

-

30-Sep-24

30-Sep-25

100%

11,243

30-Sep-23

-

-

-

-

-

-

30-Sep-24

30-Sep-25

30-Sep-26

100%

9,369

30-Sep-23

-

-

-

-

-

-

30-Sep-24

30-Sep-25

30-Sep-26

100%

4,500

30-Sep-23

-

-

-

-

-

-

30-Sep-24

30-Sep-25

30-Sep-26

-

-

-

-

$1,334

$15,452

$56,889

-

$1,100

$12,746

$46,699

-

$578

9,528

$38,601

N Based on an external valuation at grant date.

5.5 Number of Shares Held by Directors and Other KMP
The movement during the year in the number of ordinary shares of the Company held, directly or indirectly, by each director and other 
KMP, including their personally related entities, is as follows:

Held at  
1 October 2022

Received on 
exercise of 
performance rights

Other changes 
during the year

Held at  
30 September 2023

Non-executive Directors

T Dillon

G Kingwill

M Zabel

M Somerville

F Grimwade

F Bennett

MD

D Surveyor

P Thompson

Other KMP

B Crump

B Brown

D Wilson

8,850

16,432

-

-

92,699

19,507

-

674,398

11,333

28,869

-

-

-

-

-

-

-

-

-

-

-

-

11,250

7,079

9,000

-

(92,699)+

(19,507)+

-

(674,398)+

(11,333)

138

-

20,100

23,511

9,000

-

-

-

-

-

-

29,007

-

+ As these Directors and employees are no longer with the Company, the number of shares held by them are no longer reported and therefore removed from the table.
P Ross and N Feder were no longer a KMP as at 1 October 2022. Their balance at that date were 168,498 and Nil respectively.

43

SELECT HARVESTS ANNUAL REPORT 2023AUDITOR’S INDEPENDENCE DECLARATION

Auditor’s Independence Declaration 

As lead auditor for the audit of Select Harvests Limited for the year ended 30 September 2023, I 
declare that to the best of my knowledge and belief, there have been:  

(a) 

no contraventions of the auditor independence requirements of the Corporations Act 2001 in 
relation to the audit; and 

(b) 

no contraventions of any applicable code of professional conduct in relation to the audit. 

This declaration is in respect of Select Harvests Limited and the entities it controlled during the period. 

Alison Tait Milner 
Partner 
PricewaterhouseCoopers 

Melbourne 
24 November 2023 

PricewaterhouseCoopers, ABN 52 780 433 757 
2 Riverside Quay, SOUTHBANK  VIC  3006, GPO Box 1331, MELBOURNE  VIC  3001 
T: 61 3 8603 1000, F: 61 3 8603 1999, www.pwc.com.au 

Liability limited by a scheme approved under Professional Standards Legislation. 

44

SELECT HARVESTS ANNUAL REPORT 2023 
  
  
2023 FINANCIAL REPORT

Consolidated Financial Statements

Consolidated Statement of Comprehensive Income

Consolidated Statement of Financial Position

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

Notes to the Consolidated Financial Statements

1. Basis of Preparation

1.1

Basis of preparation

1.2 Critical accounting estimates and judgements

2. Results for the year

2.1 Segment Information

2.2 Revenue from continuing operations

2.3 Other income and expenses

2.4 Income Tax Expense

2.5 Earnings per share

2.6 Dividends

3. Assets and Liabilities

3.1

Trade and other receivables

3.2 Inventories

3.3 Biological assets

3.4 Derivative financial instruments

3.5 Property, plant and equipment

3.6 Right-of-use assets

3.7

Intangible assets

3.8 Trade and other payables

3.9 Leases

3.10 Deferred gain on sale

3.11 Deferred tax

3.12 Provisions

4 Capital, Financing and Risk Management

4.1 Contributed Equity

4.2 Cash and cash equivalents

4.3 Borrowings

4.4 Financial risk management

5 Group Structure

5.1 Controlled Entities

5.2 Parent entity information

5.3 Related party disclosures

5.4 Discontinued operations

6 Other Information

6.1 Contingent liabilities

6.2 Expenditure commitments

6.3 Share based payments

6.4 Auditors’ remuneration

6.5 Subsequent events

Directors’ Declaration

Independent Auditor’s Report

45

SELECT HARVESTS ANNUAL REPORT 2023CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2023

Continuing Operations Revenue 

Total revenue 

Other income/(expenses)

Fair value adjustment of biological assets

Gain on sale of assets

Insurance claims proceeds

(Loss)/Gain on foreign currency transactions

Total other income/(expenses)

Expenses

Cost of sales

Administrative expenses

Finance costs

Impairment of non-current asset

(Loss)/Profit Before Income Tax

Income tax benefit/(expense)

(Loss)/Profit From Continuing Operations

(Loss) from discontinued operations

(Loss)/Profit Attributable To Members Of Select Harvests Limited

Other comprehensive income/(loss)

Items that may be reclassified to profit or loss

Changes in fair value of cash flow hedges, net of tax

Other comprehensive income/(loss) for the year

Consolidated

2023 
$’000

2022 
Restated* 
$’000

Note

2.2

206,003

235,516

3.3

2.3

2.3

2.3

2.4

5.4

(74,512)

1,020

2,148

(3,102)

(74,446)

(232,427)

(18,364)

(10,212)

(30,080)

(159,526)

44,799

(114,727)

-

(114,727)

26,723

321

8,795

344

36,183

(237,164)

(19,707)

(4,145)

(2,785)

7,898

(1,726)

6,172

(1,413)

4,759

7,495

7,495

(6,119)

(6,119)

Total Comprehensive Income Attributable to Members of Select Harvests Limited

(107,232)

(1,360)

Total Comprehensive Income Attributable to Members of Select Harvests Limited 
arises from:

Continuing operations

Discontinuing operations

Earnings per share for profit from continuing operations attributable to the 
ordinary equity holders of the Company:

Basic earnings per share (cents per share)

Diluted earnings per share (cents per share)

Earnings per share for profit attributable to the ordinary equity holders of the 
Company:

Basic earnings per share (cents per share)

Diluted earnings per share (cents per share)

(107,232)

-

(107,232)

53

(1,413)

(1,360)

2.5

2.5

2.5

2.5

(94.8)

(94.1)

(94.8)

(94.1)

5.1

5.1

3.9

3.9

* Refer to note 1.1 Basis of Preparation for details of the restatement of comparative information.

The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying Notes.

46

SELECT HARVESTS ANNUAL REPORT 2023 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023

Current assets 

Cash and cash equivalents

Trade and other receivables

Inventories

Biological assets

Tax receivable

Total current assets

Non-current assets

Other receivables

Deferred tax assets

Property, plant and equipment

Right-of-use assets

Intangible assets

Total non-current assets

Total assets

Current liabilities

Trade and other payables

Borrowings

Lease liabilities

Derivative financial instruments

Deferred gain on sale

Provisions

Total current liabilities

Non-current liabilities

Other payables

Borrowings

Lease liabilities

Deferred tax liabilities

Deferred gain on sale

Provisions

Total non-current liabilities

Total liabilities

Net assets

Equity

Contributed equity

Reserves

Retained profits

Total equity

Note

4.2

3.1

3.2

3.3

3.11

3.5

3.6

3.7

3.8

4.3

3.9

3.4

3.10

3.12

3.8

4.3

3.9

3.11

3.10

3.12

4.1

4.1

* Refer to note 1.1 Basis of Preparation for details of the restatement of comparative information.

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying Notes.

Consolidated

2023 
$’000

2022 
Restated* 
$’000

1,134

47,489

85,317

70,557

21

204,518

2,076

6,424

449,631

190,077

60,524

708,732

913,250

69,674

6,322

27,119

3,922

175

3,515

1,135

57,094

141,056

61,198

1,452

261,935

1,825

-

455,294

208,200

87,030

752,349

1,014,284

58,279

2,663

30,465

14,629

175

4,134

110,727

110,345

527

185,000

202,536

-

1,926

1,009

390,998

501,725

411,525

401,615

6,081

3,829

411,525

1,298

133,000

211,655

35,164

2,101

437

383,655

494,000

520,284

401,164

2,029

117,091

520,284

47

SELECT HARVESTS ANNUAL REPORT 2023 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2023

Balance at 1 October 2021 

397,343

7,657

121,956

526,956

Consolidated

Contributed 
Equity 
$’000

Note

Reserves 
$’000

Retained 
Earnings 
$’000

Total 
$’000

Profit for the year

Other comprehensive income

Total comprehensive income for the year

Transactions with equity holders in their capacity 
as equity holders:
Contributions of equity, net of transaction costs and 
deferred tax

Dividends paid or provided

Employee performance rights

Balance at 30 September 2022

Loss for the year

Other comprehensive income

Total comprehensive loss for the year

Transactions with equity holders in their capacity 
as equity holders:

Transfers to retained earnings
Contributions of equity, net of transaction costs and 
deferred tax

Dividends paid or provided

Employee performance rights

Balance at 30 September 2023

4.1

2.6

6.3

4.1

2.6

6.3

4,759

-

4,759

-

(9,624)

-

4,759

(6,119)

(1,360)

3,821

(9,624)

491

117,091

520,284

(114,727)

-

(114,727)

7,495

(114,727)

(107,232)

-

-

-

-

(6,119)

(6,119)

-

-

491

2,029

-

7,495

7,495

3,821

-

-

401,164

-

-

-

-

(3,884)

3,884

-

451

-

-

401,615

-

-

441

6,081

-

(2,419)

-

3,829

451

(2,419)

441

411,525

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying Notes.

48

SELECT HARVESTS ANNUAL REPORT 2023CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2023

Cash flows from operating activities

Receipts from customers

Payments to suppliers and employees 

Interest received

Interest paid (including lease interest)

Income tax received/(paid)

Net cash (outflow)/inflow from operating activities

4.2

Cash flows from investing activities

Proceeds from Government grants

Proceeds from sale of property, plant and equipment

Proceeds from sale of water rights

Payment for water rights

Payment for property, plant and equipment

Payment for software

Payment for license

Payment for tree development costs

Net cash outflow from investing activities

Cash flows from financing activities

Proceeds from borrowings

Repayments of borrowings

Principal elements of lease payments

Dividends on ordinary shares, net of Dividend Reinvestment Plan

Net cash inflow from financing activities

Net (decrease)/increase in cash and cash equivalents 

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the end of the year

Reconciliation to cash at the end of the year:

Cash and cash equivalents

Bank overdrafts

4.2

4.2

Consolidated
2023 
$’000

2022 
$’000

Note

212,696

268,983

(200,609)

(229,855)

12,087

16

(21,780)

1,431

(8,246)

120

1,419

-

-

(22,986)

-

-

(4,704)

(26,151)

137,000

(85,000)

(19,294)

(1,969)

30,737

(3,660)

(1,528)

(5,188)

1,134

(6,322)

(5,188)

39,128

10

(16,282)

3,987

26,843

73

3,941

369

(3,962)

(28,140)

(105)

(49)

(7,696)

(35,569)

145,050 

(107,050)

(21,931)

(5,803)

10,266

1,540

(3,068)

(1,528)

1,135

(2,663)

(1,528)

The above Consolidated Statement of Cash Flow includes both continuing and discontinued operations and should be read in conjunction with the 
accompanying notes. Amounts related to discontinued operations are disclosed in Note 5.4

49

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 

1. BASIS OF PREPARATION

1.1 Basis of Preparation
The principal accounting policies adopted in the preparation of these consolidated financial statements are set out below. These 
policies have been consistently applied to all the years presented, unless otherwise stated. The consolidated financial statements are 
for Select Harvests Limited and its subsidiaries (‘the Group’). 

This general purpose financial report has been prepared in accordance with Australian Accounting Standards, other authoritative 
pronouncements of the Australian Accounting Standards Board (‘AASB’) and the Corporations Act 2001. Select Harvests Limited is a 
for profit entity which is incorporated and domiciled in Australia. Its registered office and principal place of business is:

Select Harvests Limited 
L3, Building 7, Botanicca Corporate Park 
570-588 Swan Street 
Richmond VIC 3121

A description of the nature of the Company’s operations and its principal activities is included in the review of operations in the 
directors’ report, which is not part of this financial report.

The financial report was authorised for issue by the directors on 24 November 2023. The Company has the power to amend and 
reissue the financial report.

Through the use of the internet, we have ensured that our corporate reporting is timely, complete, and available globally at minimum 
cost to the Company. All financial reports and other information are available on our website: https://www.selectharvests.com.au. 

Compliance with IFRS
The consolidated financial statements of the Group comply with International Financial Reporting Standards (‘IFRS’) as issued by the 
International Accounting Standards Board (‘IASB’).

Historical cost convention
These consolidated financial statements have been prepared under the historical cost convention, as modified by the revaluation of 
available-for-sale financial assets, financial assets and liabilities (including derivative instruments) at fair value through the 
Consolidated Statement of Comprehensive Income and biological assets.

Critical accounting estimates
The preparation of consolidated financial statements in conformity with Australian equivalents to IFRS (‘AIFRS’) requires the use of 
certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s 
accounting policies. The areas involving a higher level of judgement or complexity, or areas where assumptions and estimates are 
significant to the consolidated financial statements are disclosed in Note 1.2.

New or amended Accounting Standards and Interpretations adopted during the financial year
The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the AASB that are mandatory 
for the current reporting year. These do not have a material effect on the Group’s consolidated financial statements.

Any new, revised or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

New standards and interpretations not yet adopted
Certain new accounting standards and interpretations have been published that are not mandatory for the 30 September 2023 
reporting period and have not been early adopted by the Group. The Group’s assessment of these new standards and interpretations 
concluded that they will not have a material impact on the consolidated financial statements of the Group in future periods. The new 
standards and interpretations are as follows:
 x AASB 2020-1 Amendments to Australian Accounting Standards- Classification of Liabilities as Current or Non-Current (effective 

years beginning after 1 January 2023)

 x AASB 2020-6 Amendments to Australian Accounting Standards- Classification of Liabilities as Current or Non-Current – Deferral 

of effective date (effective years beginning after 1 January 2023)

 x AASB 2021-2 Amendments to Australian Accounting Standards- Disclosure of Accounting Policies and Definition of Accounting 

Estimates (effective years beginning after 1 January 2023)

 x AASB 2021-5 Amendments to Australian Accounting Standards- Deferred Tax related to Assets and Liabilities arising from a Single 

Transaction (effective years beginning after 1 January 2023) 

 x AASB 2022-1 Amendments to Australian Accounting Standards- Initial Application of AASB17 and AASB 9 (effective years 

beginning after 1 January 2023)

New sustainability reporting standards
In June 2023 the International Sustainability Standards Board (ISSB) published two sustainability reporting standards in response to 
the demand for better information about sustainability related matters. 

50

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED) 

1.1 Basis of preparation (continued) 
The standards issued were:
 x

IFRS S1 “General Requirements for Disclosure of Sustainability-related Financial Information”. IFRS S1 sets out overall 
requirements with the objective to require an entity to disclose information about its sustainability-related risks and opportunities 
that is useful to the primary users of general purpose financial reports in making decisions relating to providing resources to the 
entity.
IFRS S2 “Climate-related Disclosures”. IFRS S2 sets out the requirements for identifying, measuring and disclosing information 
about climate-related risks and opportunities that is useful to primary users of general purpose financial reports in making 
decisions relating to providing resources to the entity.

 x

The Australian climate related financial disclosure requirements are still being finalised, however disclosures are expected to be 
closely aligned with the ISSB Standards, with Australian equivalents to be set by the AASB considering Australian-specific 
requirements. Based on the current proposals, the climate related disclosure requirements are expected to first apply to the Group for 
the financial year ending 30 September 2025.

Whilst there are currently no mandatory climate related reporting requirements, the Group recognises the importance of 
environmental and social matters to its shareholders, suppliers and customers and discloses a significant amount of information on 
these topics in its Annual Sustainability Report. The Group’s 2023 Sustainability Report has been released to the ASX at the same 
time as this report and can be found on the Company’s website at https://www.selectharvests.com.au/governance/

Principles of consolidation

(i) Subsidiaries
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the 
Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns 
through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred 
to the Group. They are deconsolidated from the date that control ceases. A list of the Group’s subsidiaries is included in note 5.1. 

Intercompany transactions, balances and unrealised gains on transactions between the Group companies are eliminated. Unrealised 
losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of 
subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

Foreign currency translation

(i) Functional and presentation currency
Items included in the consolidated financial statements of each entity comprising the Company are measured using the currency of 
the primary economic environment in which the entity operates (“the functional currency”). The consolidated financial statements are 
presented in Australian dollars, which is the functional and presentation currency of the Group.

(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the 
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year 
end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Consolidated 
Statement of Comprehensive Income, except when deferred in equity as qualifying cash flow hedges.

Restatement of comparative information

(a) Revenue recognition for sale of external grower almonds
During the financial year, the Group assessed the revenue recognition policy for the sale of almonds received for processing from 
external growers. Previously, revenue had been recognised assuming the Group was acting as an agent, however the recent 
assessment concluded that the Group was acting as a principal in the arrangement. The error resulted in a material understatement of 
Total Revenue recognised for the 2022 and prior financial years and a corresponding understatement in Cost of sales. This 
restatement did not impact Net Profit. Additionally, there was an understatement of Inventory and Trade and other payables. There 
was no impact on equity. 

(b) Unwinding of fair value margin recognised on crops harvested in prior periods
Almond crops are accounted for as a biological asset and measured at fair value. In prior years, the fair value margin recognised on 
almond crops when harvested and transferred to inventory was reversed when the almonds were sold through the Fair value 
adjustment of biological assets line. Going forward the fair value movement and cost of sales will be recognised at their respective 
gross amounts, with the reversal of the fair value adjustment not recognised through the Fair value adjustment of biological assets 
line. There was not an impact on Net Profit. For the year ended 30 September 2022, the amount of $29.77m has been reclassified to 
increase Cost of sales with a corresponding adjustment in the Fair value adjustment of Biological assets.

51

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

1.1 Basis of preparation (continued) 
The errors have been corrected by restating each of the affected consolidated financial statement line items for the prior periods as 
follows:

$’000 
For the financial year ended 30 September 2022  
(Consolidated Statement of Comprehensive Income extract)

Total Revenue (a)

Fair Value adjustment of biological assets (b)

Cost of sales (a) & (b)

30 September 
2022

199,661

(3,048)

(171,538) 

Increase

35,855

29,771

(65,626)

30 September 
2022 (restated)

235,516

26,723

(237,164) 

$’000 
As at 1 October 2021 
(Consolidated Statement of Financial Position extract)

Inventories (a)

Trade and other payables (a)

$’000 
As at 30 September 2022  
(Consolidated Statement of Financial Position extract)

Inventories (a)

Trade and other payables (a)

1 October 2021

114,316

(64,967)

Increase

23,587

(23,587)

1 October 2021 
(restated)

137,903

(88,554)

30 September 
2022

128,462

(45,685)

Increase

12,594

(12,594)

30 September 
2022 (restated)

141,056

(58,279)

Comparatives
Where necessary, comparatives have been reclassified and repositioned for consistency with current year disclosures.

Rounding
The amounts contained in this report and in the financial report have been rounded to the nearest $1,000 (where rounding is 
applicable) under the option available to the Company under ASIC Corporations (Rounding in Financial/ Directors’ Reports) 
Instrument 2016/191. The Company is an entity to which the Class Order applies.

Parent entity financial information
The financial information for the parent entity, Select Harvests Limited, disclosed in Note 5.2 has been prepared on the same basis as 
the consolidated financial statements, except as set out below.

(i) Investments in subsidiaries
Investments in subsidiaries are accounted for at cost in the consolidated financial statements of Select Harvests Limited. 

1.2. Critical Accounting Estimates and Judgements
The Group makes estimates and assumptions concerning the future about uncertain external factors such as: discount rates, the 
effects of inflation, the outlook for global and local almond market supply and demand conditions, foreign exchange rates, asset useful 
lives and climate-related risks such as heat waves, droughts and floods. 

Estimates and judgements are continually evaluated and are based on historical experience and other factors. The actual outcomes of 
estimates and judgements used may differ because of changes in these estimates and judgements. 

The estimates and judgements that have a risk of causing a material adjustment to the carrying amounts of assets and liabilities within 
the next financial year are discussed below.

1.2.1 Climate related risks
Consideration has been given to climate related risks throughout the consolidated financial statements, and in particular in respect of 
the short-term impacts of climate conditions impacting forecast future cash flows and the carrying value of biological assets and the 
longer term climate impacts on the caring value of non-current assets, including orchard valuations (owned and leased) and water 
entitlements.

Climate risks most likely to affect the Group financially include floods and droughts, given the dependency on the use of water on its 
orchards. The financial impact of increasing/decreasing water costs as a result of droughts/floods, will most likely be offset by 
changes in almond prices given drier conditions usually increase almond quality and quantities and vice versa. 

52

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

1.2. Critical Accounting Estimates and Judgement (continued) 

The effect of these two extreme weather events on the Group’s Net Profit After Tax (NPAT) are summarised below:

Floods

Drought

Temporary Water Price

Product quality

Harvesting cost

Processing cost

Pricing

% Inshell lower & higher  
manufacturing grade

Labour, weed spraying & 
chemicals

Drying

% Kernel & inshell higher & 
manufacturing grade lower

Labour, chemicals

Better or worse growing conditions in Australia due to extreme weather conditions will 
have a significant impact on global almond prices. Extreme weather conditions in 
California will dictate global almond commodity prices.

The financial impact of increasing temporary water costs because of drier conditions will be offset by lower harvest and processing 
costs as well as a higher % of inshell and kernel production and visa versa.

1.2.2 Going concern
The Group’s operating loss before tax result of $159.5m for the financial year resulted from a downgrade in quality of the 2022 crop, 
lower almond pricing, high operating costs and poor bloom and growing conditions impacting the net volume of the 2023 crop. 

As a result of these challenges, the Board and management have considered the Group’s ability to continue as a going concern for the 
next 12 months from the date the consolidated financial statements are issued (“forecast period”). 

As of 30 September 2023, the Group has non-current bank debt of $185.0 million and current debt of $6.3 million. 

During the financial year, the Group successfully secured credit approval for an increase in banking facilities, adjusted covenants (refer 
note 4.3) and incorporating the seasonal facility into its overall banking facility. The Group was in compliance with the revised 
covenants for the period ending 30 September 2023. 

The Group has reviewed its cash flow forecast and its ability to operate within the net debt limit for the forecast period. In undertaking 
this review, the Group considered the critical assumptions in relation to the forecast and performed a sensitivity analysis on the 
forecast cash flows.

The Group’s forecast cash flows include critical assumptions relating to crop quality, crop volume and almond pricing and operating 
costs. 

Crop volumes and pricing 
A critical assumption is the 2024 crop volume. The cash flow includes the assumption of the 2024 crop tonnage returning to historical 
average harvest volumes and quality profile, and an increase of at least 15% on the 2023 crop almond price. 

The increase in the almond price is on the basis of a significant increase in quality and resulting increase in the inshell portion of the 
crop sales, alongside upward movements in market pricing. There are a number of positive indicators for almond pricing and positive 
upward movement in recent contracted sales.

Operating costs
The forecast includes the impact of inflationary increases on input costs, offset by cost savings related to key input costs such as 
fertiliser. 

Sensitivity of cash flows
The Group has considered the downside scenarios of changes to almond pricing and volumes. Based on downside scenarios, the 
Group is satisfied that reasonable changes to key assumptions would not create a liquidity issue. 

If the sales volume and pricing were to adversely impact the cash flow, the Group has other cash flow initiatives to maintain the 
headroom in the debt facilities. These include divestment of certain assets (e.g. water) and other cost saving initiatives and business 
efficiency projects.

Compliance with forecast covenants
The Group’s Fixed Charge Cover (‘FCC’) ratio will be tested for the period ended 31 March 2024 and 30 September 2024. The 
compliance with the FCC ratio will be based on the estimated profit for the FY2024 crop. There is limited headroom in the forecast 
FCC covenant for the FY24 testing dates, and hence any downside change to the forecast almond price, quality of the harvest or the 
forecast tonnage could result in a breach of the FCC covenant in FY24. The FCC ratio is sensitive to changes in the 2024 crop 
forecast. A change in the 2024 crop almond price assumption of 5.6% or a drop in yield of 5.6% would result in a FCC covenant ratio 
breach at 31 March 2024. 

53

SELECT HARVESTS ANNUAL REPORT 2023 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

1.2. Critical Accounting Estimates and Judgement (continued) 

Based on this analysis the Group would continue to trade within the limits of the available funding facilities and comply with financial 
covenants throughout the going concern forecast period. It has been concluded that the Group will continue to operate as a going 
concern and as a result, the consolidated financial statements have been prepared on this basis. 

Other Critical accounting estimates and assumptions include:
Inventory – Valuation of the 2023 Almond Crop: refer note 3.2 Inventories 
Carrying value of biological assets: refer note 3.3 Biological Assets 
Carrying value of non-current assets: refer note 3.5 Property, Plant and Equipment, note 3.6 Right-Of-Use Assets  
and 3.7 Intangibles 
Recoverability of booked tax losses: refer to note 3.11 

54

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

2.   RESULTS FOR THE YEAR

2.1 Segment Information

Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. 
The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating 
segments, has been identified as the Chief Executive Officer.

Segment products and locations
The Chief Executive Officer and Executive Management assess the performance of the Group on a consolidated basis. 

The Group grows, processes and value-adds to almonds from owned and leased almond orchards. Raw and processed product is 
exported or sold domestically to consumers and Business to Business for industrial related almond products. The Group operates 
predominantly within the geographical area of Australia. 

2.2 Revenue from continuing operations

Revenue recognised at point in time

Sale of goods and services

Management services

Government grant and other revenue

Total revenue

Consolidated

2023 
$’000

2022 
Restated* 
$’000

203,386

233,061

2,054

563

1,760

695

206,003

235,516

Note

(a)

(b)

* Refer to note 1.1 Basis of Preparation for details of the restatement of comparative information.
a.  Revenue from the Sale of goods includes sales of value-added almond products of $44.2m (2022: $55.8m) and non value-added products of $159.2m (2022: $137.6m).
b.  A government grant of $0.12 million was received during the year for hull digestion plant purposes (2022: $0.07 million).

Revenue Recognition
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, 
trade allowances, and amounts collected on behalf of third parties. Revenue is recognised when performance obligations are satisfied 
and control of the goods or services have passed or been provided to the buyer. The following specific recognition criteria must also 
be met before revenue is recognised:

Sale of goods and services
Revenue is recognised in respect of the sale of goods at the point in time when control over the corresponding goods is transferred to 
the customer (i.e. at a point in time for sale of goods when the goods are shipped to the customer or when the services have been 
provided). Revenue from sale of goods includes revenue where the Group sells almonds purchased from external growers. The Group 
is considered to be a principal in the sale of almonds purchased from external growers, given the Group has control over the external 
grower inventory from the time of delivery to the Group through to ultimate sale to customers. 

Revenue is collected on behalf of shipping and insurance third parties in instances where there are freight and insurance services 
incorporated into the sales contract. The promise to arrange shipping and insurance on behalf of the customer is identified as a 
separate performance obligation from the promise to sell the associated almonds. The nature of this performance obligation is to 
provide agency services, arranging the shipping and insurance on behalf of the customer, and accordingly revenue is recognised on a 
net basis. 

Management services
Management services revenue relates to services provided for the management and development of farms as well as sub leasing of 
our non-almond orchard. The services are recognised as revenue when services are provided.

All revenue is stated net of the amount of Goods and Services Tax (GST).

Government grants
Government grants are assistance by the government in the form of transfers of resources to the Group in return for past or future 
compliance with certain conditions relating to the operating activities of the Group. 

Government grants relating to income are recognised as income over the periods necessary to match them with the related costs. 
Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving 
immediate financial support to the Group with no future related costs are recognised as income of the period in which they become 
receivable. 

Government grants whose primary condition is that the Group should purchase, construct or otherwise acquire non-current assets 
are deducted from the carrying amount of the asset on the consolidated Statement of Financial Position. The grant is recognised in 
profit or loss over the life of the depreciable asset as a reduced depreciation expense. 

55

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

 2.3 Other Income and Expenses

Profit before tax from continuing operations includes the following specific expenses:

Depreciation of Property, Plant and Equipment:

 x Buildings

 x Plant and equipment

Total depreciation of Property, Plant and Equipment

Depreciation charge of right-of-use assets:

 x Property

 x Plant and equipment

 x Orchard-citrus

Total depreciation of right-of-use assets

Interest on leases

Amortisation of software

Amortisation of license

Employee benefits

Short term and low-value lease rental payments

Impairment losses on:

 x Property, Plant and Equipment

 x

Inventory

 x Bearer plant

 x Goodwill

Insurance recovery

Net (gain)/loss on disposal of property, plant and equipment

Net (gain)/loss on disposal of permanent water

Consolidated

2023 
$’000

2022 
$’000

Note

(a)

(b)

(c)

(d)

(e)

(e)

(f)

3.7

(e)

219

11,573

11,792

226

309

1,199

1,734

760

503

5

46,375

1,315

-

-

4,085

25,995

30,080

2,148 

1,020

-

193

9,218

9,411

576

331

1,145

2,052

720

825

3

44,464

1,337 

2,082

703

-

-

2,785

8,795 

48

(369)

a.  In addition, the following depreciation amounting to $22.63 million (2022: $19.46 million) was capitalised as part of the biological asset which will then unwind as part of 

cost of sales when the almonds are sold.

b.  In addition, the following ROU asset depreciation amounting to $17.67 million (2022: $15.44 million) and $2.24 million (2022: $5.43 million) was capitalised as part of the 

biological asset and leasehold improvement respectively. The portion capitalised into the biological asset will then unwind as part of cost of sales when the almonds are 
sold. 

c.  Lease interest amounting to $9.18 million (2022: $7.44 million) and $1.55 million (2022: $3.94 million) was capitalised as part of the biological asset and leasehold 

improvement respectively. The portion capitalised into the growing crop will then unwind as part of cost of sales when the almonds are sold.

d.  The expense represents lease rentals that are short-term leases (terms of 12 months or less) and leases of low-value assets charged directly to the Consolidated 

Statement of Comprehensive Income. 

e.  On 26 December 2021, the Group experienced a fire event in its co-waste handling area at its Carina West processing facility. The damage impacted some site buildings, 
materials handling equipment and work in progress inventory. As the inventory and equipment were destroyed beyond repair, their fair value less cost of disposal was nil 
and written off to profit and loss. 
The impairment loss is included in other expenses in the Consolidated Statement of Comprehensive Income. An insurance recovery of $2.15 million (2022: $8.79 million) 
has been recognised as other income. With the receipt of $2.15 million, the insurance claim is now finalised.

f.  During the financial year, the Company experienced floods on selected orchards. Although efforts were made by management to clear the flood waters, some trees in low 

lying areas were heavily impacted. This led to management performing an assessment of the trees impacted and recognising an impairment loss.

56

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

 2.4 Income Tax Expense

(a) Income tax benefit/(expense)

Current tax

Deferred tax

Over/(Under) provided in prior years

Total current tax benefit/(expense)

Deferred income tax (benefit)/expense included in income tax expense comprises: 

Increase/(Decrease) in deferred tax assets 

(Increase)/Decrease in deferred tax liabilities

Income tax expense is attributable to:

Loss/(Profit) from continuing operations

Loss from discontinued operations

Aggregate income tax benefit/(expense)

(b) Numerical reconciliation of income tax expense to prima facie tax payable

(Loss)/Profit from continuing operations before income tax expense

Tax benefit/(expense) at the Australian tax rate of 30% (2022: 30%)

Tax effect of amounts that are not deductible/(taxable) in calculating taxable income:

Other non-assessable income

Other non-deductible items

(Under)/Over provided in prior years

Origination and reversal of temporary differences

Income tax benefit/(expense) 

Consolidated
2023 
$’000

2022 
$’000

Note

3.11

3.11

5.4

-

39,899

4,900

44,799

22,194

17,705

39,899

44,799

-

44,799

-

(1,930)

809

(1,121)

3,700

(5,630)

(1,930)

(1,726)

605

(1,121)

(159,526)

47,858

7,898

(2,369)

-

(7,959)

-

4,900

44,799

(166)

-

809

-

(1,726)

The income tax expense or revenue for the year is the tax payable on the current year’s taxable income based on the notional income 
tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of 
assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses. 

(i) Investment allowances and similar tax incentives
Companies within the Group may be entitled to claim special tax deductions for investments in qualifying assets or in relation to 
qualifying expenditure (e.g. the Research and Development Tax Incentive regime in Australia or other investment allowances). The 
Group accounts for such allowances as tax credits, which means that the allowance reduces income tax payable and current tax 
expense. A deferred tax asset is recognised for unclaimed tax credits that are carried forward.

57

SELECT HARVESTS ANNUAL REPORT 2023 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

 2.4 Income Tax Expense (continued)

(ii) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST except:

 x Where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST 

is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and

 x Receivables and payables are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the 
Consolidated Statement of Financial Position. 

Cash flows are included in the Consolidated Statement of Cash Flows on a gross basis and the GST component of cash flows arising 
from investing and financing activities, which is recoverable from, or payable to the taxation authority are classified as Cash Flows 
from Operating Activities. 

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.

2.5 (Loss) Earnings Per Share

(a) Basic (loss)/earnings per share

From continuing operations attributable to the ordinary equity holders of the Company

From discontinued operations

Total basic earnings per share attributable to the ordinary equity holders of the Company

(b) Diluted (loss)/earnings per share

From continuing operations attributable to the ordinary equity holders of the Company

From discontinued operations

Total basic earnings per share attributable to the ordinary equity holders of the Company

(c) Reconciliation of earnings used in calculating earnings per share
(Loss)/Profit attributable to the ordinary equity holders of the Company used in calculating basic 
earnings per share:

From continuing operations

From discontinued operations

The following reflects the share data used in the calculations of basic and diluted earnings per share:

2023 
Cents

(94.8)

-

(94.8)

(94.1)

-

(94.1)

2022 
Cents

5.1

(1.2)

3.9

5.1

(1.2)

3.9

(114,727)

-

(114,727)

6,172

(1,413)

4,759

2023 
Number

2022 
Number

(d) Weighted average number of shares

Weighted average number of ordinary shares used in calculating basic earnings per share

121,021,435

120,710,209

Weighted average number of performance rights issued

852,743

440,885

Effect of dilutive securities:
Adjusted weighted average number of ordinary shares used as the denominator in calculating 
diluted earnings per share

121,874,178

121,151,094

Basic Earnings per share
Basic earnings per share are calculated by dividing the profit attributable to equity holders of the Company by the weighted average 
number of ordinary shares outstanding during the year.

Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the weighted 
average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive ordinary 
shares, and after income tax effect of interest and other financing costs associated with potential dilutive ordinary shares. Diluted 
earnings per share include performance rights issued to executives under the Company’s LTI plans.

58

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

2.6 Dividends

(a) Dividends paid during the year

(i) FY2023 Interim Dividend

No interim dividend declared (FY2022: Nil)

(ii) FY2022 Final Dividend – paid 2 February 2023

Fully franked dividend 2c per share (FY2021 final dividend: 8c paid on 4 February 2022)

Consolidated
2023 
$’000

2022 
$’000

-

-

2,419

2,419

9,624

9,624

(b) Dividends proposed and not recognised as a liability.

No dividend (2022: 2 cents per share) has been declared by the directors $Nil (2022: $2,419,016). 

(c) Franking credit balance

Franking credits available for subsequent reporting periods based on a tax rate of 30% (2022: 30%)

18,464

21,086

The above amounts represent the balance of the franking account (presented as the gross dividend value) as at the end of the period, adjusted for:
i.  Franking credits that will arise from the payment of the amount of the provision for income tax at the reporting date
ii.  Franking debits that will arise from the payment of dividends recognised as a liability at the reporting date.

59

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

3.  ASSETS AND LIABILITIES

3.1 Trade and Other Receivables

Trade receivables

Loss allowance

Other receivables

Prepayments

Consolidated
2023 
$’000

32,287

-

32,287

3,105

12,097

47,489

2022 
$’000

33,864

-

33,864

5,254

17,976

57,094

Trade Receivables
Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. They are 
recognised initially at the amount of consideration that is unconditional and subsequently measured at amortised cost using the effective 
interest method. Details about the Company’s impairment policies and the calculation of the loss allowance are explained below.

(a) Impairment of trade receivables
The Group applies the AASB 9 Financial Instruments simplified approach to measuring expected credit losses which uses a lifetime 
expected loss allowance for all trade receivables.

To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days 
past due. The expected loss rates are based on the payment profiles of sales over a period of 24 months before 30 September 2023 
and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current 
and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables.

The ageing analysis for the financial year ended 2023 was determined as follows:

Up to  
3 months  
past due  
$’000

More than  
3 months  
past due 
$’000

Current 
$’000

32,302

(15)

34,177

(313)

-

-

Total 
$’000

32,287

33,864

30 September 2023

Gross carrying amount

30 September 2022

Gross carrying amount

Note: Expected credit loss on aged receivables is immaterial and not disclosed above.

(b) Effective interest rates and credit risk
All receivables are non-interest bearing. 

The Company minimises concentrations of credit risk in relation to trade receivables by undertaking transactions with a large number 
of customers from across the range of business segments in which the Company operates. Refer to Note 4.4 for more information on 
the risk management policy of the Company as well as the effective interest rate and credit risk of current receivables.

(c) Fair value 
Due to the short-term nature of these receivables, their carrying amount is assumed to approximate their fair value.

3.2 Inventories

Raw materials

Finished goods and work in progress

Other inventories

* Refer to note 1.1 Basis of Preparation for details of the restatement of comparative information.

60

Consolidated

2023 
$’000

13,383

62,527

9,407

85,317

2022 
Restated* 
$’000

28,892

103,608

8,556

141,056

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

3.2 Inventories (continued)

Inventories are valued at the lower of cost and net realisable value. A write-down of $24.5m (2022: Nil) was made for the 2022 crop 
due to deterioration in stock quality during the financial year. 

A fair value write down was recognised on the 2023 almond crop in biological assets (note 3.3). There have been no subsequent 
write-downs to the 2023 crop after being transferred into inventory. 

Almond inventory held at 30 September 2023 that has been purchased from external growers is included in the Group’s Inventory 
balance given the Group has control over the external grower inventory from the time of delivery to ultimate sale to customers.

Costs incurred in bringing each product to its present location and condition, are accounted for as follows:

 x Raw materials and consumables: purchase cost on a first in first out basis;
 x Biological assets reclassified as inventory (included within raw materials in the table above): the initial cost assigned to agricultural 

produce is the fair value less costs to sell at the point of harvesting in accordance with AASB 141 Agriculture (‘AASB 141’). 
Subsequently, downward changes to the fair value of uncommitted inventory are recognised to the Consolidated Statement of 
Comprehensive Income. The fair value measurements for the uncommitted inventory balance have been categorised as Level 2 fair 
values based on the inputs to the valuation techniques used, which are based on observable market data. It is measured 
considering the estimated selling price at any given point in time based on:
current market prices for similar quality products i.e. inshell/kernel, etc;
 -
 - executed sales of similar quality product in the market; and 
 - The observable data used for measurement of the uncommitted inventory balance are inherently considering the impact of climate 

change risks at the time of measurement including any climate related impacts on the size of the Californian almond crop; 
 x Finished goods and work in progress: cost of direct material and labour and a proportion of manufacturing overheads based on 

normal operating capacity; and

 x Other inventories comprise consumable stocks of chemicals, fertilisers and packaging materials recorded at cost on a first in first 

out basis.

Critical Accounting Estimates & Assumptions

Valuation of the 2023 Almond Crop 
The 2023 almond crop is classified as inventory once the crop is harvested in accordance with AASB 102 Inventories. At balance 
date, the Company had completed hulling and shelling of all its almonds with a yield of 19,771MT and 83% of this crop had been 
sold or committed to be sold.

At 30 September 2023, $45.8 million of the Groups' inventory is in relation to the 2023 almond crop. 

The critical accounting estimates and assumptions used in determining the net realisable value of the 2023 uncommitted 
inventory on hand includes the quality of the inventory on hand, and its associated market pricing. It also considers any 
subsequent contracts entered into after year end.

3.3 Biological Assets

Growing almond crop

Reconciliation of changes in carrying amount of biological assets

Opening balance

Increases due to purchases/growing costs (including capitalised depreciation)

Decreases due to harvest (i)

(Loss)/Gain arising from changes in fair value (ii)

Closing balance

Consolidated
2023 
$’000

70,557

61,198

206,831

2022 
$’000

61,198

51,321

178,707

(122,960)

(195,553)

(74,512)

70,557

26,723

61,198

Includes biological assets reclassified as inventory at the point of harvest

i. 
ii.  Net (decrements)/increments in the fair value of the growing assets are recognised as (expense)/income in the Consolidated Statement of Comprehensive Income..

Recognition and Measurement
Almond trees are bearer plants and are therefore presented and accounted for as property, plant and equipment (‘PPE’) (see note 3.5). 
However, almonds growing on the trees are accounted for as biological assets until the point of harvest. Almonds are transferred to 
inventory at fair value less costs to sell when harvested (see note 3.2). Biological assets relate to the almond crop and are measured at 
fair value less costs to sell in accordance with AASB141. Where fair value cannot be reliably measured or little or no biological 
transformation has taken place, biological assets are measured at cost. 

At 30 September 2023, the biological asset balance relates to the 2024 almond crop, which is recorded at cost and has little or no 
biological transformation. The 2023 almond crop has been transferred to inventory after it was fully harvested during the financial year.

61

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

3.3 Biological Assets (continued)

The change in estimated fair value of the biological assets are recognised in the Consolidated Statement of Comprehensive Income. 
Fair value measurements have been categorised as Level 3 fair values based on the inputs to the valuation techniques used, which are 
not based on observable market data. It is measured taking into account the following:

 x estimated selling price at harvest and estimated cash inflows based on forecasted sales;
 x estimated yields; and
 x estimated remaining growing, harvests, processing and selling costs.

All the non-observable data used for measurement of the biological assets fair value, are inherently considering the impact of climate 
change risks at the time of measurement including for example the impact of severe weather conditions on water requirements to 
grow and harvests the almond crops.

Critical Accounting Estimates & Assumptions

Carrying value of biological assets
The recoverability of the biological assets carrying value is dependent on the estimated 2024 crop volume and price. The Group’s 
forecasts includes the assumption of the 2024 crop tonnage returning to historical average harvest volumes and quality profile, 
and an increase of at least 15% on the 2023 crop almond price. These estimates incorporate the consideration of short-term 
climate related risks and assumptions as set out in Note 1.2.1.

The increase in the almond price is based on a significant increase in quality and resulting increase in the inshell portion of the 
crop sales, alongside upward movements in market pricing. There are a number of positive indicators for almond pricing and 
positive upward movement in recent contracted sales.

3.4 Derivative Financial Instruments

Current Liabilities

Consolidated
2023 
$’000

2022 
$’000

Fair Value of Forward exchange and option contracts – cash flow hedges

3,922

14,629

Derivatives
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to 
their fair value at the end of each reporting period. The method of recognising the resulting gain or loss depends on whether the 
derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The Company designates derivatives 
as either; (1) hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value hedge); or (2) hedges of highly 
probable forecast transactions (cash flow hedges).

(i) Hedge effectiveness
Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness 
assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. The Company 
documents the relationship between hedging instruments and hedged items, as well as its risk management objective and strategy 
for undertaking various hedge transactions. 

For hedges of foreign currency purchases and sales, the Company enters into hedge relationships where the critical terms of the 
hedging instrument match exactly with the terms of the hedged item. The Company therefore performs a qualitative assessment of 
effectiveness. If changes in circumstances affect the terms of the hedged item such that the critical terms no longer match exactly 
with the critical terms of the hedging instrument, the Company uses the hypothetical derivative method to assess effectiveness. 
Ineffectiveness may arise if the timing of the forecast transaction changes from what was originally estimated or if there are changes 
in the credit risk.

In hedges of foreign currency purchases and sales, ineffectiveness may arise if the timing of the forecast transaction changes from 
what was originally estimated, or if there are changes in the credit risk of Australia or the derivative counterparty.

(ii) Fair value hedge
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the Consolidated Statement of 
Comprehensive Income, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

(iii) Cash flow hedge
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in 
the cash flow hedge reserve within equity. The gain or loss relating to the ineffective portion is recognised immediately in Other 
Expenses in the Consolidated Statement of Comprehensive Income.

62

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

3.4 Derivative Financial Instruments (continued)

(iv) Cash flow hedge accounting
When option contracts are used to hedge forecast transactions, the Company designates intrinsic value options as the hedging 
instrument. Gains and losses relating to the effective portion of the change in value of the options are recognised in the cash flow 
hedge reserve within equity. 

When forward exchange contracts (‘FEC’s) are used to hedge forecast transactions, the Company designates the full change in fair 
value of the forward exchange contract(‘FEC’) as the hedging instrument. The gains or losses relating to the effective portion of the 
change in fair value of the entire FEC are recognised in the cash flow hedge reserve within equity.

Amounts accumulated in equity are reclassified in Cost of Sales in the Consolidated Statement of Comprehensive Income in the 
periods when the hedged item will affect profit or loss (for instance when the forecast sale that is hedged takes place). However, when 
the forecast transaction that is hedged results in the recognition of a non-financial asset (for example, inventory) or a non-financial 
liability, the gains and losses previously deferred in equity are transferred from equity and included in the measurement of the initial 
cost or carrying amount of the asset or liability.

When a hedging instrument expires or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting, any 
cumulative deferred gain or loss existing in equity at that time remains in equity and is recognised when the forecast transaction is 
ultimately recognised in the Consolidated Statement of Comprehensive Income. When a forecast transaction is no longer expected to 
occur, the cumulative gain or loss that was reported in equity is immediately transferred to Other Expenses in the Consolidated 
Statement of Comprehensive Income.

(v) Outstanding hedge instruments
The Company entered into FEC’s hedge instruments to buy and sell specified amounts of foreign currency in the future at stipulated 
exchange rates. The objective of entering the FEC’s is to protect the Company against unfavourable exchange rate movements for 
highly probable contracted and forecasted sales and purchases undertaken in foreign currencies.

At balance date, the details of outstanding hedge instruments are:

Less than 6 months

FEC Sell USD Settlement

More than 6 months

FEC Sell USD Settlement

Option Sell USD Settlement

Buy Australian Dollars

Average Exchange Rate

2023 
$’000

2022 
$’000

USD66,693

USD74,687

2023 
$’000

0.67

2022 
$’000

0.72

Buy Australian Dollars

Average Exchange Rate

2023 
$’000

2022 
$’000

USD30,000

USD47,500

USD10,000

-

2023 
$’000

0.65

0.67

2022 
$’000

0.68

-

(vi) Credit risk exposures
Credit risk for derivative financial instruments arises from the potential failure by counterparties to the contract to meet their 
obligations at maturity. The credit risk exposure to FEC’s is the net fair values of these instruments. 

The net amount of the foreign currency the Group will be required to pay or purchase when settling the brought forward foreign 
currency contracts should the counterparty not pay the currency it is committed to deliver to the Group at balance date was USD 
$106,693,000 (2022: USD $122,186,522).

The Group does not have any material credit risk exposure to any single debtor or group of debtors under financial instruments 
entered into by the Group.

63

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

3.4 Derivative Financial Instruments (continued)

(vii) Hedging reserves
The Group’s hedging reserves as presented in Consolidated Statement of Changes in Equity relate to the following hedging 
instruments:

Closing balance 30 September 2021
Add: Change in fair value of hedging instrument recognised in Other 
Comprehensive Income (‘OCI’)
Less: Reclassified from OCI to profit or loss

Less: Deferred tax

Closing balance 30 September 2022

Add: Change in fair value of hedging instrument recognised in OCI

Less: Reclassified from OCI to profit or loss

Less: Deferred tax

Closing balance 30 September 2023

Intrinsic value of 
options 
$’000

Consolidated
Spot component 
of currency 
forwards 
$’000

Total hedge 
reserves 
$’000

(689)

-
896

(207)

-

(702)

-

210

(492)

(3,433)

(4,122)

(14,629)
2,652

5,169

(10,241)

(3,222)

14,629

(3,421)

(2,255)

(14,629)
3,548

4,962

(10,241)

(3,924)

14,629

(3,211)

(2,747)

(vi) Market risk
The effects of the foreign currency related hedging instruments on the Company’s financial position and performance are as follows:

FEC’s

Carrying amount asset/(liability)

Notional amount
Maturity date

Hedge ratio

Change in discounted spot value of outstanding hedging instruments since 1 October

Change in value of hedged item used to determine hedge effectiveness

Consolidated
2023 
$’000 
Sell USD

2022 
$’000 
Sell USD

(3,222)

(14,629)

96,693
October 2023 – 
August 2025

122,187
October 2022 - 
September 2023

1:1

(3,220)

3,220

1:1

(14,629)

14,629

Weighted average hedged rate for the year (including forward points)

USD$0.6652: AUD$1 USD$0.7036: AUD$1

Foreign currency options

Carrying amount (liability)

Notional amount

Maturity date

Hedge ratio

Change in intrinsic value of outstanding hedging instruments since 1 October

Change in value of hedged item used to determine hedge effectiveness

(702)

10,000

May-June 2024

1:1

(702)

702

Weighted average strike rate for the year

USD$0.6732: AUD$1

-

-

-

-

-

-

-

64

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

3.5 Property, Plant And Equipment  

(a) Reconciliations  
Reconciliations of the carrying amounts of property, plant and equipment (‘PPE”) for the current financial year.

Buildings 
$’000

Leasehold 
Improvement 
$’000

Plantation 
land and 
irrigation 
systems 
$’000

Plant and 
equipment 
$’000

Bearer 
Plants 
$’000

Capital work 
in progress 
$’000

Total 
$’000

22,777

(4,665)

18,112

39,971

-

39,971

153,791

(43,554)

110,237

152,026

(83,978)

68,048

241,964

(46,045)

195,919

5,320

615,849

-

(178,242)

5,320

437,607

At 30 September 2021

Cost

Accumulated depreciation

Net book amount

Year ended  
30 September 2022

Opening net book amount

18,112

39,971

110,237

68,048

195,919

5,320

437,607

Reclassification from ROU*

Additions

Disposals

Depreciation expense

Impairment loss (i)

Transfers

Closing net book amount

At 30 September 2022

Cost

Accumulated depreciation

Net book amount

Year ended 
30 September 2023

-

1,474

-

(631)

-

1,790

20,745

26,041

(5,296)

20,745

Reclassification from ROU*

Additions

Disposals

Depreciation expense

Impairment loss (ii)

Transfers

-

-

-

(753)

-

445

-

8,496

-

(596)

-

-

-

-

-

2,275

3,140

(309)

-

2,329

(2,082)

20,457

77,906

(3,814)

(13,623)

(10,204)

-

-

7,696

25,867

-

-

-

(2)

-

-

(24,576)

2,275

46,673

(311)

(28,868)

(2,082)

-

47,871

108,752

193,411

6,609

455,294

48,467

(596)

47,871

156,120

(47,368)

108,752

172,471

(94,565)

77,906

249,660

(56,249)

193,411

6,609

659,368

-

(204,074)

6,609

455,294

-

3,743

-

-

-

-

(2,686)

(4,196)

(14,369)

(12,422)

-

-

-

4,911

-

(4,085)

-

(20,448)

-

4,704

-

-

21,385

(11)

-

-

3,317

29,930

(399)

(34,426)

(4,085)

-

77,906

3,317

98

(388)

15,092

81,656

Opening net book amount

20,745

47,871

108,752

193,411

6,609

455,294

Closing net book amount

20,437

48,928

109,467

181,608

7,535

449,631

At 30 September 2023

Cost

Accumulated depreciation

Net book amount

26,477

(6,040)

20,437

52,210

(3,282)

48,928

161,031

187,491

(51,564)

(105,835)

109,467

81,656

248,097

(66,489)

181,608

7,535

682,841

-

(233,210)

7,535

449,631

* This relates to ROU assets when the lease has expired and ownership remains with the Company.

i.  The impairment loss relates to assets that were damaged by a fire at the Carina West processing facility during 2022 – see note 2.3 

for details. The whole amount written off was recognised as other expense in the Consolidated Statement of Comprehensive 
Income, as there was no amount included in the asset revaluation surplus relating to the relevant assets. An amount of $2.1 million 
(2022: $8.8 million) has been recognised in other income and relates to compensation for overall damages caused by the fire and 
recognised as other income. The claim has now been finalised.

ii.  The impairment loss relates to bearer plants that were damaged by flood during the year at both the Group’s orchards. In total 523 

acres of bearer plants were written off as a result of the floods.  

65

SELECT HARVESTS ANNUAL REPORT 2023 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

3.5 Property, Plant And Equipment (continued) 

Cost basis 
The non-current assets of the CGU carrying value (including Property, Plant and Equipment) were assessed on a fair value less costs 
to sell basis. The Group assesses for indicators of impairment at the asset cash generating unit level, which is considered the smallest 
identifiable group of assets generating cash inflows that are largely independent of cash inflows from other assets. The Group 
determined this to be the orchard level.

An independent valuation was performed by Herron Todd White in September 2022 for specific assets of our Almond Division (ten 
owned orchards and the Carina West Processing Facility). The orchards were valued using a direct comparison summation and a 
discounted cashflow to determine their market value. This was performed on the basis of ‘highest and best use’ being the most 
probable use of a property which is physically possible, appropriately justified, legally permissible, financially feasible, and results in 
the highest value of the property being valued. The valuation approach used for the processing facility was capitalisation of Earnings 
Before Interest, Tax, Depreciation and Amortisation (EBITDA) and a productive unit basis to determine its market value. The book 
value of the assets at 30 September 2023 was $332.1 million against the September 2022 valuation performed by Herron Todd White 
amounting to $458.4 million which was confirmed against current market conditions to support the carrying values at 30 September 
2023 by performing a sample of external valuations at this date. As the inputs to determine the fair value are unobservable, the 
valuation is considered Level 3 in the fair value hierarchy. 

Depreciation
The depreciable amount of all fixed assets including buildings, but excluding freehold land are depreciated on a straight line basis over 
their estimated useful lives to the entity commencing from the time the asset is held ready for use. The useful economic life and 
residual value of PPE is reviewed on an annual basis considering key assumptions including forecast usage, changes in technology, 
physical condition, and potential climate change implications. 

Bearer plants are assumed ready for use when a commercial crop is produced from the seventh year post planting. The depreciation 
on the almond trees amounting to $12.42 million (2022: $10.20 million) was capitalised into the growing crop cost base. Leasehold 
improvements commence depreciation when a commercial crop is produced from the seventh year post planting and depreciated 
over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

The useful lives for each class of assets are:
Buildings
Plant and equipment
Bearer plants
Irrigation systems
Leasehold improvements

25 to 40 years
5 to 20 years
10 to 30 years
10 to 40 years
13 to 14 years

Capital works in progress
Capital works in progress are valued at cost and relate to costs incurred for owned orchards and other assets under development.

Critical Accounting Estimates and Assumptions

Carrying value of non-current assets
The recoverable value assessment includes assumptions related to fair value including relevant transactional prices, market 
conditions and asset useful lives. The carrying value assessment of bearer plants includes judgement on tree age, yields and 
estimates for tree damage. Refer to Note 1.2.1 for assumptions made in relation to climate related risks.

66

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

3.6. Right-Of-Use Assets

At 1 October 2021

Reclassification to PPE*

Additions

Disposal

Depreciation charge for the year

Impairment loss

At 30 September 2022

Reclassification to PPE*

Additions

Disposal 

Depreciation charge for the year

At 30 September 2023

Note

Property 
$’000

Plant and 
equipment 
$’000

599

-

15

(1)

(594)

-

19

-

1,726

(5)

(227)

1,513

9,668

(2,275)

706

(712)

(2,554)

(157)

4,676

(3,317)

1,293

-

(1,087)

1,565

(b)

(b)

Orchard(a) 
$’000

Total 
$’000

212,283

222,550

-

10,998

-

(19,776)

-

(2,275)

11,719

(713)

(22,924)

(157)

203,505

208,200

-

3,815

-

(20,321)

186,999

(3,317)

6,834

(5)

(21,639)

190,077

* This relates to ROU assets when the lease has expired and ownership remains with the Company.

(a) Orchard
The orchards comprise leases with Arrow Funds Management, Rural Funds Management, Lachlan Valley Farms and Aware Super. A 
total of 11,729 (2022: 11,729) acres of land are leased over an initial 20 year term (with extension options) in which the Company has the 
right to harvest almonds and citrus from the trees for the term of the agreement. The Company also has first right of refusal to 
purchase the properties in the event that the lessor wishes to sell.

(b) Orchard depreciation
Depreciation relating to the orchards have either been capitalised as part of growing crop and leasehold improvements or expensed 
directly to the Consolidated Statement of Comprehensive Income. Depreciation relating to a small portion of land (sub-leased out by 
the Group) used for citrus farming has been expensed.

A Right-of-Use (‘ROU’) asset is recognised at the commencement date of a lease. The ROU asset is measured at cost, which 
comprises the initial amount of the lease liability, adjusted for, as applicable, by any lease payments made at or before the 
commencement date net of any lease incentives received, any initial direct costs incurred, and an estimate of costs expected to be 
incurred for dismantling and removing the underlying asset, and restoring the site or asset.

ROU assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, 
whichever is shorter. Where the Group expects to obtain ownership of the leased asset at the end of the lease term, the depreciation is 
expensed over its estimated useful life. ROU assets are subject to impairment or adjusted for any remeasurement of lease liabilities.

The ROU assets carrying values were assessed by comparing the net present value of future cashflows against the lease payments 
over the life of the leases to ensure recoverability.

The Group has elected not to recognise a ROU asset and corresponding lease liability for short-term leases with terms of 12 months 
or less and leases of low-value assets. Lease payments on these assets are expensed to the income statement as incurred.

Assessment of recoverable value
The Group assesses for indicators of impairment at the asset cash generating unit level which is determined to be the orchard level. 
During the year, indicators of impairment were determined to be present at two leased orchards, as a result of lower than Group 
average profitability for the orchards. The ROU assets carrying values were assessed by comparing the net present value of future 
cashflows against the lease payments over the life of the leases to ensure recoverability. 

Critical Accounting Estimates and Assumptions

Recoverable value of right of use assets
Where indicators of impairment are identified and a value in use model is prepared to support the carrying value of the right of 
use asset, there are estimates in future cash flows assumptions for yield by orchard, quality of almonds and almond price. The key 
estimate is the future almond price which is based on a 10 year historical average.

67

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

3.7 Intangibles

Consolidated

Goodwill 
$’000

Permanent 
Water Rights 
$’000

Software 
$’000

License 
$’000

Total 
$’000

At 30 September 2021

Cost

Accumulated amortisation

Net book amount

Year ended 30 September 2022

Opening net book amount

Acquisition

Disposal

Amortisation

25,995

55,122

-

-

25,995

55,122

25,995

-

-

-

55,122

3,962

(243)

-

Closing net book amount

25,995

58,841

5,586

(2,718)

2,868

2,868

105

-

(825)

2,148

5,692

(3,544)

2,148

25,995

58,841

-

-

25,995

58,841

25,995

58,841

2,148

-

-

(25,995)

-

-

-

-

-

-

-

-

-

58,841

58,841

-

58,841

-

(3)

-

(503)

1,642

5,689

(4,047)

1,642

-

-

-

-

49

-

(3)

46

49

(3)

46

46

-

-

-

(5)

41

49

(8)

41

86,703

(2,718)

83,985

83,985

4,116

(243)

(828)

87,030

90,577

(3,547)

87,030

87,030

-

(3)

(25,995)

(508)

60,524

64,579

(4,055)

60,524

At 30 September 2022

Cost

Accumulated amortisation

Net book amount

Year ended 30 September 2023

Opening net book amount

Acquisition

Disposal

Impairment charge

Amortisation

Closing net book amount

At 30 September 2023

Cost

Accumulated amortisation

Net book amount

Permanent water rights
Permanent water rights are recorded at historical cost. Such rights have an indefinite life and are not amortised. As an integral 
component of the land and irrigation infrastructure required to grow almonds, the carrying value is tested annually for impairment. If 
events or changes in circumstances indicate impairment, the carrying value is adjusted to take account of any impairment losses.

The value of permanent water rights relates to the Group’s CGU and is an integral part of land and irrigation infrastructure required to 
grow almond orchards. The fair value of permanent water rights is supported by the tradeable market value, which at current market 
prices is in excess of book value. 

The Group’s portfolio of water rights is currently recorded at a historical cost value of $58.8 million (2022: $58.8 million). A market 
value assessment was performed at the end of the financial year. This was completed by accessing the State Water Registers and 
determining the median price for the applicable class of water rights. This value is then applied on a like for like basis to the Group’s 
water portfolio. As water prices fluctuate due to seasonal factors, current market rates have been valued internally at $119.5 million 
(2022: $128.6 million). As the inputs to determine the fair value are observable, the valuation is considered Level 2 in the fair value 
hierarchy. 

68

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

3.7 Intangibles (continued)

Software
Costs associated with maintaining software programmes are recognised as an expense when incurred. Development costs that are 
directly attributable to the design and testing of identifiable software products controlled by the Group are recognised as intangible 
assets when the following criteria are met:

it is technically feasible to complete the software so that it will be available for use

 x
 x management intends to complete the software to use it
 x
there is an ability to use the software
 x
it can be demonstrated how the software will generate probable future economic benefits
 x adequate technical, financial and other resources to complete the development of the software
 x
the expenditure attributable to the software during its development can be reliably measured

Directly attributable costs that are capitalised as part of the software include employee costs, consultant costs and an appropriate 
portion of relevant overheads. Capitalised development costs are recorded as intangible assets and amortised from the point at which 
the asset is ready for use.

Software costs are amortised on a straight line basis over the period of their expected benefit, being 7 years.

License
These are costs incurred for the application of an EPA license as part of the manufacturing of the composts program which involves 
converting hull and waste into composts material that can be used as fertilisers. These costs are amortised on a straight line basis 
over a period of 10 years. 

Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the net identifiable assets of the 
acquired subsidiary/business at the date of acquisition. Goodwill is not amortised. Instead, goodwill is tested for impairment annually 
or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost less any accumulated 
impairment losses. 

Impairment of assets 
Goodwill, brand names and permanent water rights that have an indefinite useful life are not subject to amortisation and are tested 
annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in 
circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which 
the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to 
sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately 
identifiable cash flows.

The Group has determined it appropriate to operate as a single segment and operates one CGU, that is expected to benefit from the 
synergies of the combination. The goodwill is allocated to the CGU at the level that is monitored for internal management purposes. 

(a) Impairment tests for goodwill

Critical Accounting Estimates and Assumptions
During the financial year, following the reduction in the Group’s 2023 operating profit due to the write-off of the 2022 crop 
inventory and estimated decrease in yield of the 2023 crop, the Group considered the event as an indicator of impairment, 
resulting in the completion of impairment testing as at 31 March 2023 on a Value In Use (VIU) basis. Impairment testing 
concluded that the recoverable amounts of the CGU’s assets did not exceed the carrying value resulting in the write off on the 
Group’s goodwill balance of $26 million. Key assumptions used in the value-in-use calculations for impairment include a real 
pre-tax weighted average cost of capital (of 12.1%), long term growth rate (of 2.75%), harvest volumes, almond price, growing crop 
costs and water prices. Additionally, assumptions around capital expenditure and working capital changes were incorporated. 
The real pre-tax weighted average cost of capital takes into account industry related gearing levels, risk premiums and 
benchmarking peer group rates used. This rate differs to what the Group uses internally to assess strategic opportunities and 
asset performance.

At that time, the forecasted cashflows for the remainder of FY2023 were based on the latest assumptions of forecast weather 
patterns, a lower Californian 2023 crop related to drought impacting volume, quality and production cost and increasing almond 
prices globally. The post FY2023 cashflows were based on the Group’s medium to long term averages relating to production 
yields, global almond pricing, production costs including water, given the difficulty in predicting weather patterns impacting SHV 
profitability.

69

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

3.8 Trade And Other Payables

Current

Trade creditors

Other creditors and accruals

Non-current

Other creditors and accruals

Consolidated

2023 
$’000

39,993

29,681

69,674

2022 
Restated* 
$’000

42,810

15,469

58,279

527

1,298

* Refer to note 1.1 Basis of Preparation for details of the restatement of comparative information.

These amounts represent liabilities for goods and services provided to the Group prior to the end of the year which are unpaid. These 
amounts are unsecured and are usually paid within 30 days of recognition.

3.9 Lease Liabilities

Current

Non-current

The following table sets out the maturity analysis of lease payments, showing the undiscounted 
lease payments after the reporting date.

Within one year

Later than one year but not later than five years

Later than 5 years

Consolidated
2023 
$’000

27,119

202,536

229,655

28,552

124,888

137,219

290,659

2022 
$’000

30,465

211,655

242,120

32,038

124,797

154,645

311,480

A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease 
payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily 
determined, the consolidated entity’s incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives 
receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, 
exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. 
The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred.

Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a 
change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee; lease term; 
certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the 
corresponding ROU asset, or to profit or loss if the carrying amount of the ROU asset is fully written down.

Leases are secured with the orchards, property and plant and equipment.

70

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

3.10 Deferred Gain on Sale

Current

Sale and leaseback

Non-current

Sale and leaseback

Consolidated
2023 
$’000

2022 
$’000

175

175

1,926

2,101

The deferred gain on sale relates to the sale and leaseback of bearer plants for three orchards that were sold to First State Super on 
22 September 2015 and 1 January 2016. The lease is for a 20 year term and the gain is amortised over the lease term.

3.11 Deferred Tax (Non Current)

The balance comprises temporary differences attributable to:

Amounts recognised in profit and loss

Receivables

Inventory

Biological assets

Property, plant and equipment (includes bearer plants)

Right-of-use assets

Accruals and provisions

Lease liabilities

Tax losses

Unrealised FX

Amounts recognised directly in other comprehensive income

Cash flow hedges

Amounts recognised directly in equity

Equity raising costs

Net deferred tax (assets)/liabilities

Movements:

Opening balance 1 October

Prior period (over) provision

Charged/(Credited) to Consolidated Statement of Comprehensive Income

Charged/(Credited) to other comprehensive income

Debited/(Credited) to equity

Closing balance at 30 September

Consolidated
2023 
$’000

2022 
$’000

Note

(a)

-

11,135

(20,198)

(39,679)

(51,955)

1,741

68,896

34,724

(1)

4,663

566

(3,762)

(17,629)

(41,345)

(61,351)

1,738

72,636

8,837

(115)

(40,425)

1,177

4,389

584

6,424

872

(35,164)

(35,164)

(38,851)

4,900

39,899

(3,211)

-

2,340

(1,930)

3,277

-

6,424

(35,164)

71

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

3.11 Deferred Tax (Non Current) (continued)
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are 
recovered or liabilities are settled, based on those tax rates which are enacted or substantively enacted. The relevant tax rates are 
applied to the cumulative amounts of deductible and taxable temporary differences to measure the deferred tax asset or liability. An 
exception is made for certain temporary differences arising from the initial recognition of an asset or a liability. No deferred tax asset 
or liability is recognised in relation to these temporary differences if they arose in a transaction, other than a business combination, 
that at the time of the transaction did not affect either accounting profit or taxable profit or loss.

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable 
amounts will be available to utilise those temporary differences and losses.

Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of 
investments in controlled entities where the parent entity is able to control the timing of the reversal of the temporary differences and 
it is probable that the differences will not reverse in the foreseeable future.

Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity. 

Critical Accounting Estimates and Assumptions

Recoverability of deferred tax assets
Judgement is required to determine whether deferred tax assets are recognised in the Consolidated Statement of Financial 
Position. Deferred tax assets, including those arising from unutilised tax losses, require management to assess the likelihood that 
the Group will generate sufficient taxable earnings in future periods in order to utilise recognised deferred tax assets. 
Assumptions about the generation of future taxable income is based on forecast cash flows from operations, which are impacted 
by various factors including almond sales prices, crop volumes, climate change risks, etc. To the extent that the future cash flows 
and taxable income differ significantly from estimates, the ability of the Group to realise the net deferred tax assets recorded at 
the reporting date could be impacted. 

The Group has concluded that the deferred tax assets will be recoverable using the estimated future taxable income based on the 
approved FY2024 budget, and future business plans. The Group is expected to generate taxable income from 2024 onwards. The 
losses can be carried forward indefinitely and have no expiry date. 

3.12 Provisions

Current

Employee benefits

Others

Non-Current

Employee benefits

Consolidated
2023 
$’000

2,957

558

3,515

2022 
$’000

4,134

-

4,134

1,009

437

Provisions
Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable 
that an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated. 

Employee benefits
This covers the leave obligations for long service leave and annual leave which are classified as either short-term benefits or other 
long-term benefits explained below. The current portion of this liability includes all of the accrued annual leave, the unconditional 
entitlements to long service leave where employees have completed the required period of service and also for those employees who 
are entitled to pro-rata payments in certain circumstances. The entire amount of the provision is presented as current, since the group 
does not have an unconditional right to defer settlement for any of these obligations.

Contributions are made by the Company to employees’ superannuation funds and are charged as expenses when incurred.

(i) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled wholly within 12 months 
after the end of the period in which the employees render the related service are recognised in respect of employees' services up to 
the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. 

72

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

3.12 Provisions (continued) 

The liability for annual leave is recognised in the provision for employee benefits. All other short-term employee benefit obligations are 
presented as payables.

(ii) Other long-term benefit obligations
The liability for long service leave and annual leave which is not expected to be settled wholly within 12 months after the end of the 
period in which the employees render the related service is recognised in the provision for employee benefits and measured as the 
present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting 
period using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of 
employee departures and periods of service. Expected future payments are discounted using market yields at the end of the reporting 
period on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future 
cash outflows.

4. CAPITAL, FINANCING AND RISK MANAGEMENT

4.1 Equity

(a) Contributed equity

Ordinary shares issued and fully paid

Consolidated
2023 
$’000

2022 
$’000

Note

(b)

401,615

401,164

Contributed equity
Ordinary shares are classified as equity. The value of new shares or options issued is shown in equity.

(b) Movements in shares on issue

Beginning of the year

Issued during the year:

 x Dividend reinvestment plan

 x Long term incentive plan – tranche vested

End of the year

Performance Rights

2023

Number of 
Shares

2022

$’000

Number of 
Shares

$’000

120,950,818

401,164

120,224,370

397,343

107,846

-

451

-

649,953

76,495

3,821

-

121,058,664

401,615

120,950,818

401,164

Long Term Incentive Plan
Select Harvests Limited (‘the Company’) offers employee participation in long term incentive schemes as part of the remuneration 
packages for the employees. In determining the quantum of rights offered the board considers a number of factors including: the 
corporate strategy; the appropriate mix of fixed and at risk remuneration; the fair value and face value of the rights; and the market 
relativity of employees with equivalent responsibilities.

The long-term scheme involves the issue of performance rights to the employee, under the Long Term Incentive Plan. The market 
value of ordinary Select Harvests Limited shares closed at $4.01 on 30 September 2023 ($5.26 on 30 September 2022).

Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to the 
number of and amounts paid on the shares held.

On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll 
each share is entitled to one vote.

Capital risk management 
The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern, so that it can continue to 
provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of 
capital.

In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital 
to shareholders, issue new shares or sell assets to reduce debt.

73

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

4.1 Equity (continued)

(c) Reserve

Asset revaluation reserves

Share-based payments reserve

Cash flow reserve

Notes

(i)

(ii)

(iii)

Consolidated
2023 
$’000

2022 
$’000

7,644

1,184

(2,747)

6,081

7,644

4,626

(10,241)

2,029

(i) Asset revaluation reserve 
The asset revaluation reserve was previously used to record increments and decrements in the value of non-current assets. This 
revaluation reserve is no longer in use given assets are now recorded at cost. 

(ii) Share-based payments reserve
The Share-based payments reserve is used to recognise the fair value of performance rights granted and expensed but not exercised.

(iii) Cash flow hedge reserve
The cash flow hedge reserve is used to record gains or losses on the fair value movements of financial instruments designated as 
cash flow hedges (net of tax). Refer to note 3.4(a)(iii) for more detail on how the reserve moves to the Consolidated Statement of 
Comprehensive Income.

 4.2 Cash and Cash Equivalents

Reconciliation of the net (loss)/ profit after income tax to the net cash flows from operating activities

Net (loss)/profit after tax

Adjustments for:

Depreciation and amortisation

Depreciation Right-Of-Use asset (net of capitalised amount)

Capitalised lease interest payments

Impairment loss/(gain)

Net (gain)/loss on sale of assets

Share-based payments expense

Deferred gain on sale

Asset written off

Changes in assets and liabilities

Decrease/(Increase) in trade and other receivables

(Increase)/Decrease in inventory

(Increase)/Decrease in biological assets

(Decrease)/Increase in trade payables

(Increase)/Decrease in income tax receivable

(Decrease)/Increase in deferred tax liability

(Decrease)/Increase in provisions

Net cash flow from operating activities

Consolidated

2023 
$’000

2022 
Restated* 
$’000

(114,727)

4,759

23,123

19,615

8,262

25,995

(1,020)

441

(175)

4,085

9,354

55,739

(9,359)

10,624

1,431

(41,587)

(47)

(8,246)

28,872

17,496

(3,936)

(1,207)

(321)

491

(175)

4,498

27,748

(3,153)

(9,877)

(32,094)

3,833

(3,687)

(6,404)

26,843

*Refer to Note 1.1 Basis of Preparation for details of the restatement of comparative information.

Non-cash financing activities
During the current financial year ended 30 September 2023, the Company issued 107,846 new shares (September 2022: 649,953) as 
part of the Dividend Reinvestment Plan.

74

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

4.2 Cash and Cash Equivalents (continued) 

(a) Net debt reconciliation
Net debt at the end of the year is as follows:

Cash and cash equivalents

Bank overdrafts

Borrowings- repayable after one year

Lease liabilities- repayable within one year

Lease liabilities- repayable after one year

Net debt

Consolidated
2023 
$’000

1,134

(6,322)

2022 
$’000

1,135

(2,663)

(185,000)

(133,000)

(27,119)

(202,536)

(419,843)

(30,465)

(211,655)

(376,648)

Cash and cash equivalents
purpose of presentation in the Consolidated Statement of Cash Flows, cash and cash equivalents includes cash on hand, deposits 
held at call with financial institutions, money market investments readily convertible to cash within two working days, and bank 
overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the Consolidated Statement of Financial Position.

Liabilities from financing activities

Cash/bank 
overdraft 
$’000

Leases  
due within  
1 year 
 $’000

Leases  
due after  
1 year 
 $’000

Borrowings  
due within 
1 year 
 $’000

Borrowings  
due within 
1 year 
 $’000

Total 
$’000

Net debt at 30 September 2021

(3,068)

(31,661)

(221,494)

Cash flows – Principal

Cash flows – Interest

Additions to leases

Foreign exchange adjustments

Other non-cash movements

453

-

-

1,087

34,031

(12,100)

(10,896)

-

-

-

-

-

-

(9,839)

9,839

Net debt at 30 September 2022

(1,528)

(30,465)

(211,655)

Cash flows – Principal

Cash flows – Interest

Additions to leases

Foreign exchange adjustments

Other non-cash movements

3,845

-

-

(7,505)

30,847

(11,552)

(6,830)

-

-

-

-

-

-

(9,119)

9,119

Net debt at 30 September 2023

(5,188)

(27,119)

(202,536)

4.3 Borrowings

Current - Secured

Bank overdraft

Non-current - Secured

Debt facilities

-

-

-

-

-

-

-

-

-

-

-

-

-

(95,000)

(351,223)

(38,000)

-

-

-

-

(3,516)

(12,100)

(10,896)

1,087

-

(133,000)

(376,648)

(52,000)

-

-

-

-

(17,308)

(11,552)

(6,830)

(7,505)

-

(185,000)

(419,843)

Consolidated
2023 
$’000

2022 
$’000

6,322

2,663

185,000

133,000

Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at 
amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the 
Consolidated Statement of Comprehensive Income over the period of the borrowings using the effective interest method. Fees paid 
on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of 

75

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

4.3 Borrowings (continued) 

the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is 
probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised 
over the period of the facility to which it relates.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 
12 months after the reporting period.

Borrowing costs
Borrowing costs incurred for the construction of any qualifying asset are capitalised during the period of time that is required to 
complete and prepare the asset for its intended use. All other borrowing costs, inclusive of all facility fees, bank charges, and interest, 
are expensed as incurred.

(a) Interest rate risk exposures
Details of the Company’s exposure to interest rate changes on borrowings are set out in Note 4.4.

(b) Assets pledged as security
The bank overdraft and debt facilities of the parent entity and subsidiaries are secured by the following:

i.  A registered mortgage debenture is held as security over all the assets and undertakings of Select Harvests Limited and the 

entities of the wholly owned group.

ii.  A deed of cross guarantee exists between the entities of the wholly owned group.

The carrying amounts of assets pledged as security for current and non-current borrowings are:

Current

Floating charge

Cash and cash equivalents

Receivables

Inventories

Biological assets

Tax receivables

Consolidated
2023 
$’000

2022 
$’000

Note

1,134

47,489

85,317

70,557

21

1,135

57,094

128,462

61,198

1,452

Total current assets pledged as security

204,518

249,341

Non-current

Floating charge

Other receivables

Deferred tax assets

Property, plant and equipment

Permanent water rights 

Intangible assets

Total non-current assets pledged as security

Total assets pledged as security

2,076

6,424

449,631

58,841

1,683

518,655

723,173

1,824

-

455,294

58,841

28,189

544,148

793,489

Financing arrangements
During the financial year, the Group successfully secured credit approval for an increase in banking facilities, adjusted covenants as 
well as incorporating the seasonal facility into its overall banking facility. Incorporating the seasonal facility into the overall banking 
facility ensures certainty around access to the seasonal facility should the Group require it for the 2024 harvest. The new facility limit 
amounted to $260 million (2022: $175.1 million) with the limit reducing by $20 million each at 1st July 2024 and 1st July 2025. Please 
refer to note 4.4 for further information. 

The Group also adjusted it’s covenants computation by decreasing the fixed charge cover ratio (FCC) covenant from >3.0 applicable 
at the first testing date (as at 31 March 2024) to > 2.0 times. At the September 2024 testing date, the FCC ratio will revert back to > 3.0. 
The two other covenants remained the same as per the previous agreement:
 x Liquidity ratio requirement of >1.2
 x Net gearing ratio requirement of <40%
There was no change made to the Company’s bank overdraft facilities which amounted to USD$5 million (2022: USD$5 million). The 
current interest rates at balance date are 5.81% (2022: 4.57%) on the debt facility, and 1.675% (2022: 1.675%) on the United States 
dollar bank overdraft facility.

76

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

4.4 Financial Risk Management
The Group’s activities expose it to a variety of financial risks: market risk (including currency risk, interest rate risk and commodity 
price risk), credit risk and liquidity risk. The Group uses different methods to measure different types of risk to which it is exposed. 
These methods include sensitivity analysis in the case of interest rate risk, foreign exchange and other price risks, and ageing analysis 
for credit risk.

Risk management is carried out by management pursuant to policies approved by the Board of Directors.

(a) Market risk

(i) Foreign exchange risk
Foreign exchange risk arises when future commercial transactions and recognised assets and liabilities are denominated in a 
currency that is not the Company’s functional currency.

The Group sells both almonds harvested from owned orchards through the almond pool and processed products internationally in 
United States dollars, and purchases raw materials and other inputs to the manufacturing and almond growing process from overseas 
suppliers predominantly in United States dollars. The Group also acquires capital related items internationally in both United States 
dollars and European Euros.

Management and the Board review the foreign exchange position of the Group and, where appropriate, enter into a variety of 
derivative financial instruments, transacted with the Group’s bankers to manage its foreign exchange risk. These include formulating 
various strategies, FEC’s, and options. 

The exposure to foreign currency risk at the reporting date was as follows:

Group

Trade receivables net of payables     

Overdraft

Foreign Exchange Contracts (FEC's)

 x

sell foreign currency (cash flow hedges)

Sell foreign currency option contracts*

2023 
USD $’000

2022 
USD $’000

15,187

(4,083)

96,693

10,000

16,895

(1,732)

122,187

-

* Foreign currency option contracts have a number of possible outcomes depending on the spot rate at maturity. These contracts are shown at face value. Depending on 
spot rate at maturity, the value of the contract can be USD10 million (2022: Nil) or USD20 million (2022: Nil).

Group sensitivity analysis
Based on financial instruments held at 30 September 2023, had the Australian dollar strengthened/ weakened by 5% against the US 
dollar, with all other variables held constant, the Group’s results for the period would have been $5.51 million lower/$6.09 million 
higher (2022: $6.26 million lower/$6.92 million higher), mainly as a result of the US dollar denominated financial instruments as 
detailed in the above table. Equity would have been $6.09 million lower/$6.73 million higher (2022: $7.041 million lower/$7.78 million 
higher), arising mainly from FEC’s designated as cash flow hedges.

(ii) Cash flow interest rate risk
The Group’s interest rate risk arises from borrowings issued at variable rates, which exposes the Group to cash flow interest rate risk. 
The Group’s borrowings at variable interest rate are denominated in AUD.

At the reporting date the Group had the following variable rate borrowings:

Debt facilities (AUD)

Overdraft (USD)

2023 
Interest rate  
%

5.28%

1.68%

2023 
Balance 
$’000

185,000

6,322

2022 
Interest rate  
%

4.02%

1.68%

2022 
Balance 
$’000

133,000

2,663

An analysis of debt maturities is provided in (c) below.

The Group analyses interest rate exposure on an ongoing basis in conjunction with the debt facility, cash flow and capital 
management. With the current low interest rate environment and the future expectation that interest rates will remain at low levels, 
management has not entered into any interest rate swap agreement during the year.

Group sensitivity
At 30 September 2023, if interest rates had changed by +/- 25 basis points from the weighted average interest rate with all other 
variables held constant, the result for the period would have been $331,000 lower/higher (2022: $236,000 lower/higher).

77

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

4.4 Financial Risk Management (continued)

Interest rate risk
The Company's exposure to interest rate risks and the effective interest rates of financial assets and financial liabilities both 
recognised and unrecognised at the balance date, are as follows:

Financial Instruments

(i) Financial assets

Cash

Trade and other receivables

Total financial assets

(ii) Financial liabilities

Bank overdraft – USD @ AUD

Bank loans 

Lease liabilities

Trade creditors

Other creditors

FEC’s 

Floating interest rate
2022 
$’000

2023 
$’000

Non-interest 
bearing
2022 
$’000

2023 
$’000

Total carrying 
amount as per the 
balance sheet
2022 
$’000

2023 
$’000

Weighted average 
effective  
interest rate
2022 
%

2023 
%

-

-

-

-

-

-

1,134

1,135

1,134

1,135

47,489

57,094

47,489

57,094

-

-

48,623

58,229

48,623

58,229

6,322

2,663

185,000

133,000

229,655

242,120

-

-

-

-

-

-

6,322

2,663

185,000

133,000

229,655

242,120

-

-

-

-

-

-

39,993

29,681

3,924

30,216

15,469

14,629

39,993

29,681

3,924

30,216

15,469

14,629

1.68

4.52 

5.00

-

-

-

-

-

1.68

1.61

4.99

-

-

-

Total financial liabilities

420,977

377,783

73,598

60,314

494,575

438,097

Financial Assets
Collectability of trade receivables is reviewed on an ongoing basis. Trade receivables are carried at full amounts due less expected 
credit losses which uses a lifetime expected loss allowance for all trade receivables.

Amounts receivable from other debtors are carried at full amounts due. Other debtors are normally settled on 30 days from month end 
unless there is a specific contract which specifies an alternative date. Amounts receivable from related parties are carried at full 
amounts due. 

Financial Liabilities
The bank overdraft disclosed within interest bearing liabilities is carried at the principal amount and is part of the Net Cash balance in 
the Consolidated Statement of Cash Flows. Interest is charged as an expense as it accrues. Liabilities are recognised for amounts to 
be paid in the future for goods and services received, whether or not billed to the Company. 

(b) Credit risk
Credit risk arises from cash and cash equivalents, favourable derivative financial instruments and deposits with banks and financial 
institutions, as well as credit exposures to wholesale, retail and farm investor customers, including outstanding receivables and 
committed transactions.

The Group has no significant concentrations of credit risk. The Group has policies in place to ensure that sales of products and 
services are made to customers with an appropriate credit history. Derivative counterparties and cash transactions are limited to high 
credit quality financial institutions.

The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to external credit ratings (if 
available) and to historical information. The majority of the Group’s sales are derived from large, established customers with no history 
of default.

The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial 
assets is the carrying amount of those assets, net of any provisions for doubtful debts of those assets, as disclosed in the Consolidated 
Statement of Financial Position and Notes to the financial statements.

The Group applies the AASB 9 Financial Instruments simplified approach to measuring expected credit losses which uses a lifetime 
expected loss allowance for all trade receivables. To measure the expected credit losses, trade receivables have been grouped based 
on shared credit risk characteristics and the days past due. The expected loss rates are based on the payment profiles of sales over a 
period of 24 month and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted 
to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the 
receivables. 

The Group’s banking partners have long-term credit ratings of AA- and A+ (Standard and Poor’s).

78

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

4.4 Financial Risk Management (continued)

(c) Liquidity risk
The Group manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the maturity profiles of 
financial assets and liabilities.

Financing arrangements
The following debt facilities are held with National Australia Bank (NAB) and Rabobank (RABO).

Debt facilities

1. Working Capital

2. Seasonal#

Held with

NAB

NAB

RABO

RABO

Expiry date

31/03/2026

30/06/2024

31/03/2026

01/07/2025

Facility Limit1

Amount drawn 
30 September  
2023

$120,000,000

$105,000,000

$20,000,000

$100,000,000

$20,000,000

-

60,000,000

20,000,000

AUD $260,000,000 AUD $185,000,000

3. Overdraft+

NAB

28/02/2024

USD $5,000,000

USD $4,083,000

+ Held with NAB only and reviewed annually.
1  During the year the Company has successfully renewed and increased its current debt facility agreements with NAB and Rabobank. The new facility limit amounted to 

$260 million (2022: 210 million) till 30th June 2024, whereby it will reduce to $240 million before a further reduction to $220 million from 1st July 2025. 

The interest rate paid on these facilities is determined by an incremental margin on the BBSY rate.

The Group had access to the following undrawn borrowing facilities at the reporting date:

Floating rate

Term/Seasonal#
Bank overdraft facility USD

# Subject to seasonal restrictions as mentioned above

2023 
$’000

2022 
$’000

AUD $75,000
USD $917

AUD $42,100
USD $3,268

The bank overdraft facility may be drawn at any time and may be terminated by the bank without notice. The debt facilities (term and 
seasonal) may be drawn at any time over the term subject to restrictions noted above on the seasonal facility.

Maturities of financial liabilities
The table below analyses the Group’s financial liabilities, net and gross settled derivative instruments into relevant maturity groupings 
based on the remaining period at the reporting date of the contractual maturity date. The amounts disclosed in the table are the 
contractual undiscounted cash flows.

Less than 
6 months 
$’000

6–12 
months 
$’000

Between 
1–5 years 
 $’000

Over 5 
years 
 $’000

Total 
contractual 
cash flows 
 $’000

Carrying 
amount 
(assets)/ 
liabilities 
$’000

Group at 30 September 2023

Non-derivatives

Variable Rate

Debt facilities

Trade and other payables

Lease liabilities

Bank Overdraft 

Derivatives

FEC USD sell – (inflow)

USD Sell option

Net USD

-

69,674

14,208

6,366

-

-

193,450

-

-

-

193,450

185,000

69,674

69,674

14,344

124,888

137,219

290,659

229,655

-

-

(66,693)

-

(15,000)

(10,000)

(15,000)

-

-

-

-

6,366

6,322

(96,693)

(10,000)

(3,220

(702)

79

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

4.4 Financial Risk Management (continued) 

Less than 
6 months 
$’000

6–12 
months 
$’000

Between 
1–5 years 
 $’000

Over 5 
years 
 $’000

Total 
contractual 
cash flows 
 $’000

Carrying 
amount 
(assets)/ 
liabilities 
$’000

Group at 30 September 2022

Non-derivatives

Variable Rate

Debt facilities

Trade and other payables

Lease liabilities

Bank Overdraft 

Derivatives

FEC USD buy – outflow

FEC USD sell – (inflow)

USD Sell option

Net USD

-

58,279

16,003

2,682

-

-

-

(74,687)

(47,500)

-

-

(74,687)

(47,500)

-

-

139,075

-

-

-

139,075

133,000

58,279

58,279

16,035

124,797

154,645

311,480

242,120

-

-

-

-

-

-

-

-

-

-

2,682

2,663

-

-

(122,187)

(14,629)

-

-

(122,187)

(14,629)

(d) Fair Value Measurement
The fair value of certain financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure 
purposes.

The fair value of financial instruments, such as FEC’s and foreign currency options, are valued using specific valuation techniques as 
follows:
 x
 x

for FEC’s - the present value of future cash flows based on the forward exchange rates at the balance sheet date
for foreign currency options - option pricing models

The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate their fair values. 
The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current 
market interest rate that is available to the Company for similar instruments.

Disclosures are required of fair value measurements by level of the following fair value measurement hierarchy:

a.  Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level one);
b.  Inputs other than quoted prices included within level one that are observable for the asset or liability, either directly (as prices) 

or indirectly (derived from prices) (Level two); and

c.  Inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level three).

At 30 September 2023 the Group’s assets and liabilities measured and recognised at fair value comprised the FEC’s and foreign 
currency options. These are level 2 measurements under the hierarchy.

80

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

5. GROUP STRUCTURE

5.1 Controlled Entities
The consolidated financial statements of the Group include the consolidation of Select Harvests Limited and its controlled entities. 
Controlled entities are the following entities controlled by the parent entity (Select Harvests Limited).

Country of 
Incorporation

Percentage Owned (%)

2023

2022

Parent Entity: 
Select Harvests Limited (i)

Controlled entities of Select Harvests Limited:

Kyndalyn Park Pty Ltd (i)

Select Harvests Food Products Pty Ltd (i)

Meriram Pty Ltd (i)

Kibley Pty Ltd (i)

Select Harvests Nominee Pty Ltd (i)

Select Harvests Orchards Nominee Pty Ltd (i)

Select Harvests Water Rights Unit Trust (i)

Select Harvests Water Rights Trust (i)

Select Harvests Land Unit Trust (i)

Select Harvests South Australian Orchards Trust (i)

Select Harvests Victorian Orchards Trust (i)

Select Harvests NSW Orchards Trust (i)

Jubilee Almonds Irrigation Trust Inc

(i) Members of extended closed group. Refer 5.2(c) for further details.

5.2 Parent Entity Financial Information

Australia

Australia

Australia

Australia

Australia

Australia

Australia

Australia

Australia

Australia

Australia

Australia

Australia

Australia

(a) Summary financial information
The individual financial statements for the parent entity show the following aggregate amounts:

Balance Sheet

Current Assets

Total Assets

Current Liabilities

Total Liabilities

Shareholders’ Equity

Issued capital

Reserves

 x Cash flow hedge reserve

 x Options reserve

Retained profits

Total Shareholders’ Equity

(Loss)/Profit for the year

Total comprehensive (loss)/income

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

100

2023 
$’000

2,747

588,154

21,891

176,819

2022 
$’000

3,922

554,587

18,422

147,174

401,615

401,165

(7,134)

1,343

15,512

411,336

(9,814)

(2,320)

(10,240)

4,627

11,861

407,413

(8,053)

(14,172)

(b) Tax consolidation legislation 
Select Harvests Limited and its wholly-owned Australian controlled entities have implemented the tax consolidation legislation as of 1 
July 2003. The head entity, Select Harvests Limited, and the controlled entities in the tax consolidated group account for their own 
current and deferred tax amounts. These tax amounts are measured as if each entity in the tax consolidated group continues to be a 
standalone taxpayer in its own right. In addition to its own current and deferred tax amounts, Select Harvests Limited also recognises 
the current tax liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from 
controlled entities in the tax consolidated group.

81

SELECT HARVESTS ANNUAL REPORT 2023 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

5.2 Parent Entity Financial Information (continued)

The entities have also entered into a tax funding agreement under which the wholly-owned entities fully compensate Select Harvests 
Limited for any current tax payable assumed and are compensated by Select Harvests Limited for any current tax receivable and 
deferred tax assets relating to unused tax losses or unused tax credits that are transferred to Select Harvests Limited under the tax 
consolidation legislation. The funding amounts are determined by reference to the amounts recognised in the wholly-owned entities' 
financial statements.

The amounts receivable/payable under the tax funding agreement is due upon receipt of the funding advice from the head entity, 
which is issued as soon as practicable after the end of each financial year

The head entity may also require payment of interim funding amounts to assist with its obligations to pay tax instalments. The funding 
amounts are recognised as current intercompany receivables or payables.

Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as current amounts 
receivable from or payable to other entities in the Group.

Any difference between the amounts assumed and amounts receivable or payable under the tax funding agreement are recognised as 
a contribution to (or distribution from) wholly-owned tax consolidated entities.

(c) Guarantees entered into by parent entity
Each entity within the Group has entered into a cross deed of financial guarantee under which each company guarantees the debts of 
the others. By entering into the deed, the wholly-owned entities have been relieved from the requirement to prepare a financial report 
and directors’ report under ASIC Corporations (Wholly-owned Companies) Instrument 2016/785.

Loans are made by Select Harvests Limited to controlled entities under normal terms and conditions.

5.3 Related Party Disclosures

(a) Key management personnel compensation

Short term employment benefits

Post-employment benefits

Long service leave

Share based payments

Other disclosures relating to key management personnel are set out in the Remuneration Report.

(b) Director related entity transactions
There were no director related entity transactions during the year.

(c) Directors’ interests in contracts
There were no directors’ interests in contracts during the year. 

Consolidated

2023

2022

3,141,476

3,669,273

573,352

125,782

249,170

559,988

77,774

586,608

4,089,780

4,893,643

82

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

5.4 Discontinued Operations

(a) Description
On 30 August 2021, the Group announced the sale of the Lucky and Sunsol brands to Prolife Foods Pty Ltd with the sale completed 
on 30 September 2021. As part of the sale agreement of the Consumer Brands, the Company entered into a six month co-packing 
agreement to produce Lucky and Sunsol products on behalf of Prolife Foods Pty Ltd. As the co-packing agreement is a result of the 
sale of the Consumer brands business, the associated revenue and expenses have been disclosed as discontinued operations.

(b) Financial performance and cash flow information
The financial performance and cash flow information presented reflects the discontinued operations for the financial year ended 30 
September 2023. 

Revenue

Expenses

Underlying EBIT

Interest expense

Restructuring gain/(expense)

(Loss) before income tax

Income tax benefit

(Loss) after income tax of discontinued operations

Net cash inflow/(outflow) from ordinary activities

Net cash (outflow) from investing activities

Net decrease in cash generated by the business

Note

2023 
$’000

(i)

-

-

-

-

-

-

-

-

-

-

-

2022 
$’000

30,618

(33,816)

(3,198)

(27)

1,207

(2,018)

605

(1,413)

7,350

-

7,350

i.  The Company had fully exited Thomastown by 30 June 2022. All costs incurred during the closure, such as employee retention incentives, redundancy costs and other 

restructuring costs have been adjusted against the provision made as at 30 September 2021. Any variance with the provisions were adjusted and reflected as 
restructuring gain in the previous financial year.

Basic (loss) per share from discontinued operations

Diluted (loss) per share from discontinued operations

2023 
Cents

-

-

2022 
Cents

(1.2)

(1.2)

83

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

6. OTHER INFORMATION

6.1 Contingent Liabilities

(i) Guarantees
Cross guarantees are given by the entities comprising the Group. Group entities are set out in Note 5.1.

(ii) Bank Guarantees
As at 30 September 2023, the Company had provided $6.16 million (2022: $6.16 million) of bank guarantees as security for the almond 
orchard leases.

6.2 Expenditure Commitments
Upon adoption of AASB 16 Leases “AASB 16” on 1st October 2019, the operating and finance lease commitments have been disclosed 
as lease liabilities except for leases on water rights which are classified as intangibles and therefore excluded from the AASB 16 scope.

(a) Operating lease commitments
Commitments payable in relation to leases contracted for at the reporting date but not recognised as liabilities:

Minimum lease payments

 x Within one year

 x Later than one year and not later than five years

 x

later than five years

Consolidated
2023 
$’000

2022 
$’000

9,544

17,364

-

14,382

19,388

-

Aggregate lease expenditure contracted for at reporting date

26,908

33,770

Operating leases
The minimum lease payments of operating leases, where the lessor effectively retains substantially all of the risks and benefits of 
ownership of the leased item, are recognised as an expense on a straight line basis over the term of the lease.

(b) Capital commitments

Significant capital expenditure contracted for at the end of the reporting year but not 
recognised as liabilities is as follows:

Property, plant and equipment

6,070

1,532

Consolidated
2023 
$’000

2022 
$’000

84

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

6.3 Share Based Payments

Long Term Incentive Plan
The Group offers executive directors and senior executives the opportunity to participate in the long term incentive plan (LTI Plan) 
involving the issue of performance rights to the employee under the LTI Plan. The LTI Plan provides for the offer of a parcel of 
performance rights with a three year performance period to participating employees on an annual basis.

Previous performance rights issue had rights vesting each year, with half of the rights vesting upon achievement of underlying 
earnings per share (EPS) and the other half vesting upon achievement of total shareholder return (TSR) targets. The underlying EPS 
growth targets are based on the Cumulative Annual Growth Rate (CAGR) of the Company’s underlying EPS over the three years prior 
to vesting. The TSR targets are measured based on the Company’s average TSR compared to the TSR of a peer group of ASX listed 
companies over the three years prior to vesting. The performance targets and vesting proportions are as follows:

Rights issued in previous financial year

Measure

Underlying EPS

Below 5% CAGR

5% CAGR

5.1% - 19.9% CAGR

20% or higher CAGR

TSR

Below the 50th percentile*

50th percentile*

51st – 74th percentile*

At or above 75th percentile*

Rights to Vest

Nil

25%

Pro rata vesting

50%

Nil

25%

Pro rata vesting

50%

* Of the peer group of ASX listed companies as outlined in the directors’ report.

Performance rights issued in the current financial year with vesting date of 31 October 2025 have rights vesting based on absolute 
TSR (50% weighting) and absolute ROCE (50% weighting) over the three years prior to vesting.

The performance targets and vesting proportions are as follows:

Absolute TSR (50% weighting)

Performance Level

Absolute TSR (CAGR) Over Performance Period

Vesting % of Tranche

Stretch

Between Target & Stretch

Target

Between Threshold and Target

Threshold

Below Threshold

Average ROCE (50% weighting)

≥ 20%

> 10% & < 20%

10%

> 5% & < 10%

5%

<5%

100%

Pro-rata

50%

Pro-rata

25%

0%

Performance level

SHV’s Average ROCE for Performance Period

Vesting %

Stretch

> 14% of ROCE Achieved

Between Target & Stretch

> ROCE achieved of 9.8% & < ROCE achieved of 14%

Target

ROCE achieved of 9.8%

Between Threshold and Target

> ROCE achieved of 7.0% & < ROCE achieved of 9.8%

Threshold

Below Threshold

ROCE achieved of 7.0%

ROCE achieved less than 7.0%

100%

Pro-rata

50%

Pro-rata

25%

0%

85

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

6.3 Share Based Payments (continued)

Summary of performance rights over unissued ordinary shares
Details of performance rights over unissued ordinary shares at the beginning and ending of the reporting date and movements during 
the year are set out below:

30 September 2023

Grant date

Vesting 
date

Exercise  
price

Balance at 
start of  
the year 
(number)

Granted 
during the 
year 
(number)

Forfeited 
during the 
year 
(number)

Vested 
during the 
year 
(number)

Balance at end of the 
year 

On issue

Vested

Proceeds 
received  
($)

Shares 
issued 
(number)

Fair value 
per share# 
($)

Fair value 
aggregate 
($)

27/03/2020

31/10/2022

28/07/2021

31/10/2023

31/05/2022

31/10/2024

09/03/2023

31/10/2025

07/04/2023

31/10/2025

-

-

-

-

-

105,480

175,542

382,381

-

-

-

(105,480)

(15,742)

(31,292)

-

-

266,642

(45,971)

261,191

-

# Based on an external valuation at grant date.

-

-

-

-

-

-

159,800

351,089

220,671

261,191

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

4.22

-

6.29

1,005,142

3.91

1,372,758

2.47

2.55

545,057

773,125

30 September 2022

Grant date

Vesting 
date

Exercise  
price

Balance at 
start of  
the year 
(number)

Granted 
during the 
year 
(number)

Forfeited 
during the 
year 
(number)

Vested 
during the 
year 
(number)

Balance at end of the 
year 

On issue

Vested

Proceeds 
received  
($)

Shares 
issued 
(number)

Fair value 
per share# 
($)

Fair value 
aggregate 
($)

29/04/2019

31/10/2021

27/03/2020

31/10/2022

28/07/2021

31/10/2023

31/05/2022

31/10/2024

-

-

-

-

152,986

105,480

175,542

-

-

-

-

382,381

(76,491)

(76,495)

-

-

-

-

-

-

-

105,480

175,542

382,381

-

-

-

-

-

-

-

-

-

-

-

-

5.18

4.22

-

445,126

6.29

1,104,159

3.91

1,495,110

# Based on an external valuation at grant date.

Fair value of performance rights granted
The assessed fair value at grant date is determined using the Black-Scholes-Merton model (ROCE valuation) and the Monte Carlo 
option pricing model (Absolute TSR) that takes into account the term of the rights, the impact of dilution, the share price at offer date 
and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the right. 
This assessment was made by an external expert.

The model inputs for rights granted in the tables above included:

07 April 2023 Performance Rights Issue

09 May 2023 Performance Rights Issue

31 May 2022 Performance Rights Issue

28 July 2021 Performance Rights Issue

27 March 2020 Performance Rights Issue

29 April 2019 Performance Rights Issue

Share price at 
grant date

Expected 
volatility*

Expected 
dividends

Risk free  
interest rate

$4.28

$4.02

$5.88

$7.66

$7.05

$6.49

36%

36%

39%

40%

40%

40%

1.00%

1.00%

2.51%

0.52%

4.95%

1.83%

2.88%

3.43%

2.65%

0.02%

0.35%

1.33%

* Expected share price volatility was calculated with reference to the annualised standard deviation of daily share price returns on the underlying security over a specified 
period.

Expenses arising from share-based payment transactions
Total expenses/(credits) arising from share-based payment transactions recognised during the period as part of employee benefit 
expense were as follows:

Performance rights granted under employee long term incentive plan

Consolidated

2023 
$

2022 
$

441,301

491,092

86

SELECT HARVESTS ANNUAL REPORT 2023NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(CONTINUED)

6.3 Share Based Payments (continued) 

Share-based payments
Share-based compensation benefits are provided to employees via the Select Harvests Limited Long Term Incentive Plan (LTIP). 

The fair value of performance rights granted under the Select Harvests Limited LTIP is recognised as an employee benefit expense 
with a corresponding increase in equity. The fair value is measured at grant date and recognised over the period during which the 
employees become unconditionally entitled to the performance rights. The fair value at grant date is independently determined using 
a Monte Carlo option pricing model that takes into account the term of the right, the vesting and performance criteria, the impact of 
dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free 
interest rate for the term of the right. The fair value of the performance rights granted is adjusted to reflect market vesting conditions, 
but excludes the impact of any non-market vesting conditions (for example, profitability and sales growth targets). Non-market vesting 
conditions are included in assumptions about the number of rights that are expected to vest. At each balance sheet date, the entity 
revises its estimate of the number of rights that are expected to vest. The employee benefit expense recognised each period takes into 
account the most recent estimate. The impact of the revision to original estimates, if any, is recognised in the Consolidated Statement 
of Comprehensive Income with a corresponding adjustment to equity. 

6.4 Auditors’ Remuneration

Audit and other assurance services

Audit and review of financial statements

Other services

Total remuneration of PricewaterhouseCoopers

Consolidated

2023 
$

2022 
$

443,200 

374,300 

(a)

-

-

443,200 

374,300

(a) There were no fees paid to PricewaterhouseCoopers for other services performed during the period. 

6.5 Events Occurring After Balance Date
There were no significant events occurring after balance date.

87

SELECT HARVESTS ANNUAL REPORT 2023DIRECTORS’ DECLARATION

In the directors’ opinion:

a.  the consolidated financial statements and Notes set out on pages 46 to 87 are in accordance with the Corporations Act 2001, 

including:
i.  complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting 

requirements; and

ii.  giving a true and fair view of the consolidated entity’s financial position as at 30 September 2023 and of its performance for 

the financial year ended on that date; 

b.  there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and 

payable; and

c.  at the date of this declaration, there are reasonable grounds to believe that the members of the extended closed group identified 
in Note 5.1 will be able to meet any obligations or liabilities to which they are, or may become, subject by virtue of the deed of 
cross guarantee described in Note 5.2.

Note 1.1 confirms that the consolidated financial statements also comply with International Financial Reporting Standards as issued by 
the International Accounting Standards Board.

The directors have been given the declarations by the Managing Director and Chief Financial Officer required under section 295A of 
the Corporations Act 2001.

This declaration is made in accordance with a resolution of the directors.

T Dillon 
Chairman

Melbourne, 24 November 2023

88

SELECT HARVESTS ANNUAL REPORT 2023INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SELECT HARVESTS LIMITED 

Independent auditor’s report 

To the members of Select Harvests Limited 

Report on the audit of the financial report 

Our opinion 

In our opinion: 

The accompanying financial report of Select Harvests Limited (the Company) and its controlled entities 
(together the Group) is in accordance with the Corporations Act 2001, including: 

(a) 

giving a true and fair view of the Group's financial position as at 30 September 2023 and of its 
financial performance for the year then ended  

(b) 

complying with Australian Accounting Standards and the Corporations Regulations 2001. 

What we have audited 
The Group financial report comprises: 

• 
• 
• 
• 
• 

• 

the consolidated statement of financial position as at 30 September 2023 

the consolidated statement of comprehensive income for the year then ended 

the consolidated statement of changes in equity for the year then ended 

the consolidated statement of cash flows for the year then ended 

the notes to the consolidated financial statements, which include significant accounting policies 
and other explanatory information 

the directors’ declaration. 

Basis for opinion 

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under 
those standards are further described in the Auditor’s responsibilities for the audit of the financial report 
section of our report. 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for 
our opinion. 

Independence 
We are independent of the Group in accordance with the auditor independence requirements of the 
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards 
Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) 
(the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our 
other ethical responsibilities in accordance with the Code. 

PricewaterhouseCoopers, ABN 52 780 433 757 
2 Riverside Quay, SOUTHBANK  VIC  3006, GPO Box 1331, MELBOURNE  VIC  3001 
T: 61 3 8603 1000, F: 61 3 8603 1999 

Liability limited by a scheme approved under Professional Standards Legislation. 

89

SELECT HARVESTS ANNUAL REPORT 2023 
 
 
 
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SELECT HARVESTS LIMITED 
(CONTINUED)

Our audit approach 

An audit is designed to provide reasonable assurance about whether the financial report is free from 
material misstatement. Misstatements may arise due to fraud or error. They are considered material if 
individually or in aggregate, they could reasonably be expected to influence the economic decisions of 
users taken on the basis of the financial report. 

We tailored the scope of our audit to ensure that we performed enough work to be able to give an 
opinion on the financial report as a whole, taking into account the geographic and management structure 
of the Group, its accounting processes and controls and the industry in which it operates. 

Our audit focused on where the Group made subjective judgements; for example, significant accounting 
estimates involving assumptions and inherently uncertain future events. 

Key audit matters 

Key audit matters are those matters that, in our professional judgement, were of most significance in our 
audit of the financial report for the current period. The key audit matters were addressed in the context 
of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide 
a separate opinion on these matters. Further, any commentary on the outcomes of a particular audit 
procedure is made in that context. We communicated the key audit matters to the Audit and Risk 
Committee. 

Key audit matter 

How our audit addressed the key audit matter 

Basis of preparation 
(Refer to note 1.2.2) 

As described in note 1.2.2, the Consolidated 
Financial Statements have been prepared by the 
Group on a going concern basis. 

The Group’s profitability and cash flows have 
been impacted by a downgrade in quality of the 
2022 crop, lower almond pricing, high operating 
costs and poor bloom and growing conditions 
impacting the net volume of the 2023 crop. 

The Group prepared a cash flow forecast for the 
next 12 months from the date the financial report 
is issued, which assessed its liquidity and 
compliance with forecast covenant positions. 

Our procedures included the following, amongst others: 

•  Evaluated the appropriateness of the Group’s assessment 
of their ability to continue as a going concern, including 
whether the level of analysis is appropriate given the 
nature of the Group and the period covered is at least 12 
months from the date of our auditor’s report. 

•  Read the relevant banking facility agreements and 

developed an understanding of the key terms, including 
available drawdown amounts, maturity dates and 
covenants. 

•  Obtained the Group’s cash flow forecast and compared the 
future cash flows used in the forecast with the forecasts 
formally approved by the Board. 

•  Assessed whether the significant assumptions for harvest 
volumes, almond price and operating costs used in the 
cash flow forecast and covenant calculation were 
appropriate, with reference to the historical performance 
and external market data where possible. 

90

SELECT HARVESTS ANNUAL REPORT 2023 
 
 
 
 
 
 
 
 
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SELECT HARVESTS LIMITED 
(CONTINUED)

Key audit matter 

How our audit addressed the key audit matter 

Assessing the appropriateness of the Group’s 
basis of preparation for the financial report was 
considered a key audit matter due to its 
importance to the overall Consolidated Financial 
Statements and the level of judgement involved 
in forecasting future cash flows for a period of at 
least 12 months from the audit report date and 
covenant calculations of the Group. 

•  Checked the mathematical accuracy of key data inputs for 

the cash flow forecast. 

•  Checked the mathematical accuracy of the covenant 

calculations and compared the calculations to the relevant 
covenant requirements in the banking facility agreements. 

•  Evaluated the reasonableness of the disclosures made in 

note 1.2.2, including significant assumptions and 
sensitivities to changes in such assumptions, against the 
requirements of Australian Accounting Standards. 

Inventory valuation 
(Refer to note 3.2) 

The Group held inventory of $85.3 million at  
30 September 2023. The inventory balance 
includes harvested almonds at year end. In 
accordance with Australian Accounting 
Standards, inventories are valued at the lower of 
cost and net realisable value. 

We considered inventory valuation to be a key 
audit matter because of the financial significance 
of the inventory balance and the judgement 
required by the Group in determining key 
assumptions used in determining net realisable 
value. 

Our procedures included the following, amongst others: 

•  Assessed the Group’s accounting policies against the 
requirements of Australian Accounting Standards.  

•  Evaluated net realisable value of inventory by:  

-  comparing the carrying value of inventory at year-end, 
to actual selling prices achieved after year-end for a 
sample of items sold or to a sample of committed 
sales contracts, and 

-  assessing whether the almond price assumptions 
used to determine the net realisable value of the 
inventory, where there were no committed sales 
contracts, were appropriate, with reference to market 
prices. 

•  Evaluated the reasonableness of the disclosures made in 

note 3.2 in light of the requirements of Australian 
Accounting Standards. 

91

SELECT HARVESTS ANNUAL REPORT 2023 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SELECT HARVESTS LIMITED 
(CONTINUED)

Key audit matter 

How our audit addressed the key audit matter 

Carrying value of Goodwill 
(Refer to note 3.7) 

During the year, the Group held goodwill of $26.0 
million. 

The Group identified one Cash Generating Unit 
(CGU) for assessing the carrying value of 
goodwill.  At 31 March 2023, the Group 
performed an impairment assessment for the 
CGU, by preparing a financial model to 
determine if the carrying value of the assets is 
supported by forecast future cash flows, 
discounted to present value (the “model”). The 
impairment assessment resulted in a full 
impairment of the goodwill balance. 

We consider the carrying value of goodwill to be 
a key audit matter because of the financial 
significance of the carrying value of the CGU and 
the significant judgements and assumptions 
applied by the Group in estimating forecast future 
cash flows. 

Other information 

Our procedures included the following, amongst others: 

•  Assessed whether the Group’s determination of the Cash 
Generating Unit (CGU) was consistent with our knowledge 
of the Group’s operations. 

• 

Tested the mathematical accuracy of key data in the 
model. 

•  Compared the forecast cash flows used in the model with 

the forecasts formally approved by the Board. 

•  Assessed whether the significant assumptions used in the 
model, including forecast harvest volumes, water prices 
and almond pricing, were appropriate with reference to 
external market data, where available. 

•  Assessed whether the discount rate and long-term growth 
rate applied in the model were appropriate, based on 
market information. 

•  Evaluated the reasonableness of the disclosures made in 

note 3.7, including key assumptions, in light of the 
requirements of the Australian Accounting Standards. 

The directors are responsible for the other information. The other information comprises the information 
included in the annual report for the year ended 30 September 2023, but does not include the financial 
report and our auditor’s report thereon. 

Our opinion on the financial report does not cover the other information and accordingly we do not 
express any form of assurance conclusion thereon through our opinion on the financial report. We have 
issued a separate opinion on the remuneration report. 

In connection with our audit of the financial report, our responsibility is to read the other information and, 
in doing so, consider whether the other information is materially inconsistent with the financial report or 
our knowledge obtained in the audit, or otherwise appears to be materially misstated. 

If, based on the work we have performed on the other information that we obtained prior to the date of 
this auditor’s report, we conclude that there is a material misstatement of this other information, we are 
required to report that fact. We have nothing to report in this regard. 

92

SELECT HARVESTS ANNUAL REPORT 2023 
 
 
 
 
 
 
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SELECT HARVESTS LIMITED 
(CONTINUED)

Responsibilities of the directors for the financial report 

The directors of the Company are responsible for the preparation of the financial report that gives a true 
and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for 
such internal control as the directors determine is necessary to enable the preparation of the financial 
report that gives a true and fair view and is free from material misstatement, whether due to fraud or 
error. 

In preparing the financial report, the directors are responsible for assessing the ability of the Group to 
continue as a going concern, disclosing, as applicable, matters related to going concern and using the 
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease 
operations, or have no realistic alternative but to do so. 

Auditor’s responsibilities for the audit of the financial report 

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free 
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes 
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit 
conducted in accordance with the Australian Auditing Standards will always detect a material 
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, 
individually or in the aggregate, they could reasonably be expected to influence the economic decisions 
of users taken on the basis of the financial report. 

A further description of our responsibilities for the audit of the financial report is located at the Auditing 
and Assurance Standards Board website at: 
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our 
auditor's report. 

Report on the remuneration report 

Our opinion on the remuneration report 

We have audited the remuneration report included in pages 33 to 43 of the directors’ report for the year 
ended 30 September 2023. 

In our opinion, the remuneration report of Select Harvests Limited for the year ended 30 September 
2023 complies with section 300A of the Corporations Act 2001. 

Responsibilities 

The directors of the Company are responsible for the preparation and presentation of the remuneration 
report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an 
opinion on the remuneration report, based on our audit conducted in accordance with Australian 
Auditing Standards.  

PricewaterhouseCoopers  

Alison Tait Milner 
Partner 

Melbourne 
24 November 2023 

93

SELECT HARVESTS ANNUAL REPORT 2023 
 
 
   
 
 
 
ASX ADDITIONAL INFORMATION

Additional information required by the Australian Stock Exchange Limited and not shown elsewhere in this report is as follows. 

(a) Distribution of equity securities
The following information is current as at 31 October 2023.

The number of shareholders, by size of holding, in each class of share is:

Number of ordinary shares

Number of shareholders

1 to 1,000

1,001 to 5,000

5,001 to 10,000

10,001 to 100,000

100,001 and over

The number of shareholders holding less than a marketable parcel of shares is:

60,566

(b) Twenty largest shareholders
The following information is current as at 31 October 2023.

The names of the twenty largest registered holders of quoted shares are:

1

2

3

4

5

6

7

8

9

10

11

12

13

CITICORP NOMINEES PTY LIMITED

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED

J P MORGAN NOMINEES AUSTRALIA LIMITED 

NATIONAL NOMINEES LIMITED 
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 

UBS NOMINEES PTY LTD

BUTTONWOOD NOMINEES PTY LTD

BNP PARIBAS NOMS PTY LTD

INVIA CUSTODIAN PTY LIMITED 

EQUITY T S PTY LTD

RATHVALE PTY LIMITED

BNP PARIBAS NOMINEESS PTY LTD HUB24 CUSTODIAL SERV LTD

BNP PARIBAS NOMINEES PTY LTD 

14 MR JOHN PATERSON

15

16

17

18

19

20

BNP PARIBAS NOMINEES PTY LTD 

TOAL INTERNATIONAL PTY LTD 

CITICORP NOMINEES PTY LIMITED 

TASMAN SUPER PTY LIMITED 

REZANN PTY LTD 

ENGINEERING SOFTWARE & CONTROL SYSTEMS LIMITED

Total securities of Top 20 holdings

Remaining holders balance

Total

4,546

3,588

928

707

42

1,126

Number of shares Percentage of shares

27,035,697

17,040,941

13,678,069

5,857,772

5,361,429

4,748,314

3,458,351

2,274,575

1,061,302

620,342

546,105

497,645

495,928

480,000

392,850

370,000

319,383

304,225

273,000

250,000

85,065,928

35,992,736

121,058,664

22.33%

14.08%

11.30%

4.84%

4.43%

3.92%

2.86%

1.88%

0.88%

0.51%

0.45%

0.41%

0.41%

0.40%

0.32%

0.31%

0.26%

0.25%

0.23%

0.21%

70.27%

29.73%

100%

94

SELECT HARVESTS ANNUAL REPORT 2023ASX ADDITIONAL INFORMATION

(c) Substantial shareholders
The substantial shareholders as disclosed by notices received by the Company as at 31 October 2023 are:

Perpetual Limited

Yarra Capital Management Limited

Paradice Investment Management Pty Ltd

Wilson Asset Management Group 

Host-Plus Pty Limited as trustee of the Hostplus Pooled Superannuation Trust

United Super Pty Ltd in its capacity as trustee of CBUS (United Super)

Macquarie Group Limited 

Vanguard Group 

(d) Voting rights
All ordinary shares (whether fully paid or not) carry one vote per share without restriction.

The Company is listed on the Australian Stock Exchange. The home exchange is Melbourne.

Number of shares

Percentage of 
shares

12,420,240

10.33%

9,481,714

9,609,921

8,162,469

6,837,837

6,701,652

6,603,363

6,097,065

7.89%

7.95%

6.74%

5.65%

5.57%

5.45%

5.04%

95

SELECT HARVESTS ANNUAL REPORT 2023CORPORATE INFORMATION

Select Harvests Limited 
ABN 87 000 721 380

Directors
T Dillon (Chair)
D Surveyor (Managing Director – appointed 20 February 2023)
G Kingwill (Non-Executive Director)
M Zabel (Non-Executive Director – appointed 3 October 2022)
M Somerville (Non-Executive Director – appointed 13 December 2022)
P van Heerwaarden (Non-Executive Director – appointed 1 November 2023)
P Thompson (Managing Director- retired 03 March 2023)
F S Grimwade (Non-Executive Director – retired 27 February 2023)
F Bennett (Non-Executive Director – retired 27 February 2023)

Company Secretary
B Crump

Registered Office - Select Harvests Limited
L3, Building 7, Botanicca Corporate Park 
570-588 Swan Street 
Richmond VIC 3121

Postal address
L3, Building 7, Botanicca Corporate Park 
570-588 Swan Street 
Richmond VIC 3121 
Telephone (03) 9474 3544 
Email info@selectharvests.com.au 

Solicitors
Minter Ellison Lawyers

Bankers
National Australia Bank Limited 
Rabobank Australia

Auditor
PricewaterhouseCoopers

Share Register
Computershare Investor Services Pty Limited 
Yarra Falls 
452 Johnston Street 
Abbotsford VIC 3067 
Telephone (03) 9415 4000 

Website 
www.selectharvests.com.au

96

SELECT HARVESTS ANNUAL REPORT 2023 
 
 
 
 
 
 
 
 
97

SELECT HARVESTS ANNUAL REPORT 2023Select Harvests Limited
L3, Building 7, Botanicca Corporate Park 
570-588 Swan Street 
Richmond VIC 3121

Telephone (03) 9474 3544 
Email info@selectharvests.com.au