Ann: Results Presentation 31 March 2022, page-3

Obviously a very disappointing set of results. Despite the short increase in the price of almonds, they were not able to benefit from it. A large part of this to my mind is that the inventory in the US was greater than people expected; the drought has not been as damaging to mature trees as people expected; and ergo the almond price has not gone to the moon like some had expected.

Meanwhile, Select Harvest experienced increasing costs of production despite a 30% reduction in water costs. So clearly they have not managed their expenses very well, but probably a lot of this is labour costs. The return on capital employed has dropped to a pretty abysmal 0.6%.

Not sure what is going to hold the share price up after this, considering they recently diluted shareholders at $5.30 for the Piangil acquisition. $530m of net assets on the balance sheet vs $730m market cap (NAV=$4.35). So there could be some pain ahead.

When I see California rippiing up mature trees due to the drought, and inventory dropping substantially, then that will be a good time to buy I suppose. GLTAH.