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Scales Corporation Limited: 'Commendable group performance in a disrupted year'

Diversified agribusiness group Scales Corporation Limited reported its FY2023 full year results. Reported NPAT1 Attributable to Shareholders was $5.2 million (FY2022: $19.4 million). Reported earnings per share for FY2023 were 3.7 cents per share (FY2022: 13.7 cents per share).

Underlying NPAT Attributable to Shareholders of $19.0 million (FY2022: $27.6 million) was at the top end of market guidance. Underlying earnings per share for FY2023 were 13.4 cents per share.

Group FY2023 financial results:

  • Underlying NPAT of $38.4 million, down 17 per cent (FY2022: $46.4 million)
  • Reported NPAT of $24.7 million, down 35 per cent (FY2022: $38.2 million)
  • Underlying EBITDA of $67.5 million, down 13 per cent (FY2022: $77.9 million)
  • Revenue of $565.4 million, down 9 per cent (FY2022: $619.2 million)

Divisional summary:

  • Global Proteins produced a strong performance, reflecting the ability of the division to execute its strategy and adjust to market conditions
  • The Horticulture division produced an admirable result, with higher in-market prices helping to offset lower volumes caused by Cyclone Gabrielle
  • Logistics generated a solid result despite the impact of lower volumes together with geopolitical tensions in key trade routes

Mike Petersen, Chair of Scales Corporation, stated: "Our diversified strategy has, once again, proved to be an important factor in our success in what was a disruptive year. This, combined with the ability of our divisions to execute their individual strategies during testing times, produced very commendable Group earnings."

"Global Proteins and Logistics performed strongly, with Horticulture producing an admirable result, having dealt with the significant effects of Cyclone Gabrielle during the year. This is in no small part due to the skills and resilience of the entire Scales team."

Andy Borland, Managing Director of Scales Corporation, noted: "I would also like to mention the aptitude and hard work of the Scales team. The Cyclone touched the lives of a significant number of our staff members, and many more people within our Hawke's Bay community. To see the results of their hard work despite the adversity that they faced is testament to the strong culture that exists within the Group as a whole."

The Horticulture division produced an Underlying FY2023 EBITDA of $14.8 million (FY2022: $17.0 million), a decrease of 13 per cent. Mr Borland observed "FY2023 was a very challenging year for the Horticulture division, as it was for the entire Hawke's Bay horticulture industry. However, the division produced a very commendable result given the significant physical, financial and volumetric impacts of Cyclone Gabrielle."

"Mr Apple's own-grown export volume of 2,733k TCEs4 was 18 per cent down on the prior year (FY2022: 3,324k TCEs). However, Mr Apple experienced a strong finish to the season due, in part, to limited supply in key markets, which in turn contributed to higher in-market pricing."

Click to read the Annual Results Presentation report.

For more information:
Andy Borland
Scales Corporation Limited
Mob: +64 021 975 999

Publication date: