NZ: Scales Corp profit rises 59% in H1

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NZ: Scales Corp profit rises 59% in H1

Profits have surged for the owner of New Zealand's largest vertically integrated apple business Mr Apple, with support from increased export volumes. apples panorama 2

In a release to the New Zealand Stock Exchange today (NZX), Scales Corporation (NZX:SCL) reported a net profit after tax of NZ$33.2 million, representing year-on-year growth of 59%.

"The result reflects strong performance across all divisions and particularly the vertically integrated Mr Apple business, which exceeded expectations across its operations from orchards, packhouses, coolstorage and export marketing," managing director Andy Borland said.

Apple exports were up 14.6% on the same period last year, and 16.1% higher than the forecast level in 2015.

The group emphasized all its divisions were trading above 2014 levels, with a positive outlook for the future.

"The Storage & Logistics division has benefitted from improvements in utilisation. The large Auckland Coldstore project is nearing completion, and together with a new coldstore lease in Christchurch will see an overall increase in storage capacity of 17.4 per cent from the fourth quarter of this year," Borland said.

"Scales Logistics and Balance Cargo have contributed improved profitability and assisted Mr Apple and Meateor in securing improved shipping rates. Our bulk liquid storage business, Liqueo, is set to benefit from new contracted business.

"Looking ahead, Scales is well positioned to benefit from expected increases in annual apple crops, improving FX rates, increased coldstorage space, and improving utilisation and efficiency in our bulk liquid storage business."

Borland also reiterated guidance that the full year result would likely produce an EBITDA 25-35% higher than what was forecast in its prospectus.



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