Diversified agribusiness group Scales Corporation Limited has reported its 1H23 results. An excellent performance by its Global Proteins division together with solid earnings from its Logistics division offset lower results from its Horticulture division due to the effects of Cyclone Gabrielle.
Mike Petersen, Scales Corporation Chair, commented: “Scales delivered a resilient result in what was an extremely difficult 6-month period for the Horticulture division. The Group benefited from continued growth in the Global Proteins division together with solid results from Logistics.”
“Cyclone Gabrielle caused significant loss and disruption, and we are extremely proud of all our team members who were able to resume operations in the week following the Cyclone. We have endeavoured to support both our staff and the community in every way that we can following Cyclone Gabrielle and will continue to do so as the clean-up continues throughout the region.”
“As ever, our results are not possible without the hard work and effort of each and every individual within the Group, and we would like to extend our thanks to all our team members, especially to those who were personally affected by the Cyclone.”
Global Proteins produced an extremely good result, with Underlying EBITDA3 of $30.1 million (1H22: $29.9 million). Managing Director Andy Borland noted: “Global Proteins continued to capitalise on operational improvements made in prior periods. Results include our 50% share of NPAT for the Fayman businesses, with earnings for these businesses currently trading ahead of 1H22.”
The Horticulture division produced a commendable operating result given the effects of Cyclone Gabrielle. Underlying EBITDA was $11.4 million (1H22: $24.5 million). Mr Apple’s total own-grown export volumes are forecast to be 2.7 million TCEs4 (2022: 3.3 million TCEs).
Mr Borland noted: “This has been a very extremely difficult growing and post-harvest period for Horticulture, as well as the wider Hawke’s Bay produce industry, resulting in lower volumes. However, higher in-market apple prices have helped to compensate for the lower volumes. In addition, Mr Apple has experienced encouraging growth in its Premium varieties of DazzleTM and PosyTM, with demand outweighing supply in China.”
“Extensive orchard remediation has taken place with approximately 165 hectares of damaged orchards recovered from silt, debris and slash. An outstanding effort by our Horticulture team has resulted in around 50% of recovered blocks being re-seeded, with a target to complete the re-seeding by the end of this month.”
“Mr Apple is continuing its business review and we expect performance to return to more normal levels for FY24.”
Click here to view the Half Year results report.
For more information: 
Andy Borland
Scales Corporation Limited
Mob: +64 021 975 999
Email: [email protected]
www.scalescorporation.co.nz