Highlights – 12 months to 31 December 2020

Scales Corporation’s sound foundations generate strong 2020 operating performance

Diversified agribusiness group Scales Corporation Limited (NZX:SCL) today reported its FY2020 full year results. Profit for the Year was $26.6 million (FY2019: $121.6 million). Earnings per share for FY2020 were 15.0 cents per share (FY2019: 84.2 cents per share).

  1. Group FY2020 financial results:
    • Revenue of $470.7 million (FY2019: $484.6 million)
    • Reported NPAT of $26.6 million (FY2019: $121.6 million)
    • Underlying EBITDA of $53.9 million (FY2019: $52.7 million)
    • Underlying NPAT of $33.8 million (FY2019: $36.4 million).
  2. Mr Apple own-grown export volumes of 3,915k TCEs, up 2 per cent on 2019 export volumes and up 3% on forecast.
  3. Food Ingredients Underlying EBITDA of $23.1 million (FY2019: $13.5 million), an exceptional performance.

Scales Corporation Chair Tim Goodacre noted: “We are extremely proud of the hard work and unity displayed by the entire Scales team in a challenging and disruptive year. This unity enabled Scales to continue trading throughout lockdowns, without New Zealand government wage subsidies, and still deliver a profit result consistent with our originally provided guidance.”

“The diversified strategy of the Group provided us with a solid base from which to operate. The divisional mix of our earnings differed compared to prior years, with an exceptional performance recorded by the Food Ingredients division.”

“Mr Apple benefited from geographical and varietal diversification. Volumes and prices in Asia and the Middle East were adversely affected by the timing of lockdowns on consumers, but it benefitted from firm European and UK markets. Food Ingredients produced a stand-out result, benefitting from a strong growth in global petfood demand together with geographical diversity in its supply network and sources of proteins.”

Andy Borland, Managing Director of Scales Corporation, commented: “The Board and senior leadership team are proud of the dedication and courage exhibited by all staff during a demanding year. We would not have been able to produce our results without a unified effort by all business divisions.”

“Notwithstanding the challenges thrown at us due to COVID-19, the group continued to advance its strategic plan and invest in growth opportunities. Mr Apple completed phase 2 of its orchard redevelopment program, finalised the upgrade of its seasonal worker accommodation and has recently completed the build of its new purpose-built coolstore at Whakatu. The coolstore was finished on time and on budget and is expected to provide operational and logistics efficiencies. Shelby entered into a new toll processing agreement in Dodge City, Kansas, providing us with additional operational resource in the USA to satisfy demand.”

Click here to read the full press release.

For more information:
Andy Borland
Scales Corporation Limited
Mob: +64 021 975 999
E-mail: andy.borland@scalescorporation.co.nz

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