NZ: Apple volumes, prices drive Scales Corp’s H1 profit boost

August 28 , 2018

New Zealand-based produce company Scales Corporation Limited (NZX:SCL) increased net profit by 22% during the first half to NZ$34.8 million, driven partly by a record apple crop and strong pricing.

EBITDA for the group, which owns Mr Apple, for the six month period ending June 30 was NZ$57.1 million

“Our results reflect strong performances across all divisions and is a testament to the hard work of every member of the Scales team,” said managing director Andy Borland.

“In the Horticulture division, Mr Apple capitalised on a return to expected growing conditions, after the challenging season in 2017, to deliver another record crop and export volume.

“It also continued to benefit from ongoing investment in the Middle East and China markets and strong demand from Europe, delivering an overall increase in apple prices. We have anticipated some softening of demand for the conclusion of the season.”

He said the storage and logistics division delivered a “satisfying result” with increased volumes and improved utilization building on prior year operations.

The company also completed the conditional sale of Polarcold in June and in August announced the sale of Liqueo.

“There was a significant increase in sales volumes at Meateor Foods in our Food Ingredients division, due to favourable market conditions. However, we expect volumes to be lower in the second half of the year.”

Chairman Tim Goodacre said: “We are pleased to reaffirm our previously announced EBITDA guidance of between $58 million and $65 million on a like-for-like basis (Continuing and Discontinued Operations) and we expect to be at the top end of that range.”

 

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