Scales Corporation Limited Analysis

Overview

Scales Corporation is a diversified agribusiness portfolio. It comprises three operating divisions: Horticulture, Storage & Logistics and Food Ingredients. The company's diverse spread of activities gives Scales broad exposure to New Zealand's agribusiness sector. Scales Corporation was founded in 1897 as a shipping business by George Herbert Scales. The company employs more than 500 staff New Zealand wide.

Performance

The following information was extracted from Scales Corporation Limited's Half Year results, released on 28 August 2024:

SCALES CORPORATION’S EARNINGS RECOVERING STRONGLY

Highlights – 6 months to 30 June 2024 (1H24)

• Underlying NPAT Attributable to Shareholders of $28.5 million (1H23: $14.5 million), up 97%

• Reported NPAT of $38.1 million (1H23: $14.3 million), up 167%

• Horticulture returning towards pre-Cyclone performance levels

• Global Proteins’ performance consistent with 1H23

• Logistics benefiting from higher volumes

• Execution of strategic growth transactions in both Horticulture and Global Proteins

Diversified agribusiness group Scales Corporation Limited (NZX:SCL) today reported its 1H24 results with all divisions delivering strong earnings.

Scales Corporation’s Chair, Mike Petersen, noted: “The Horticulture division’s earnings are a very positive reflection of the teams’ hard work post-Cyclone and Global Proteins delivered a consistent result whilst executing its strategic initiatives.”

“It was satisfying to return to a more normal trading period, allowing the teams in each of the divisions to concentrate on the growth objectives in each of their respective businesses. As ever, our results are only achievable due to their effort and dedication every day.”

“It has also been pleasing to be able to execute on strategic growth transactions within Horticulture and Global Proteins over the last 6 months, and we are excited by the opportunities that they will afford us.”