The Scales Corporation Horticulture division encountered significant headwinds. Its underlying EBITDA of $24.0 million was down on the prior period (1H21: $38.0 million) with strong in-market prices more than offset by reduced volumes and increased costs.
Mr Apple’s total own-grown export volumes are forecast to be 3.3 million TCEs (2021: 3.6 million TCEs).
Mr Borland noted: “This has been a very challenging season for Horticulture. There has been considerable disruption in a number of aspects of the business, including in weather, labour, logistics and international markets. Despite the outstanding job that Mr Apple’s team has done, the combined effect of these disruptions has negatively impacted the 1H22 result.”
"We are continuing to give attention to the issues of increasing labour costs and difficulties in labour availability and our packhouse automation project, which partially addresses these issues, is progressing well.”
Logistics continued to prove its strategic value and delivered a strong Underlying EBITDA of $3.6 million (1H21: $2.7 million). Mr Borland said “The skill and expertise of the Logistics team meant vital services and solutions were provided to both internal and external customers. We believe there is an opportunity to expand this offering and expertise to global markets in conjunction with the growth in the Global Proteins division.”
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Source: scalescorporation.co.nz