The directors of Scales Corporation Limited have reiterated market guidance for the twelve months ending 31 December 2024, with an Underlying Net Profit After Tax Attributable to Shareholders expected to range between $30.0 million and $35.0 million.
Managing Director Andy Borland stated:
"2024 has been a very positive year for Scales. We've returned to a more normal trading environment, whilst also executing on strategic growth transactions, both in the Horticulture and Global Proteins divisions."
"In Horticulture, the orchard transactions with the Bostock Group and Craigmore Sustainables have increased our volumes of Premium apple varieties, particularly Dazzle. We were also delighted to welcome Profruit as a wholly-owned subsidiary following the acquisition of the remaining 50% from Bostock Group. The net impact of these transactions on the FY24 financial result was negligible."
"In Global Proteins, the increase in our investment in Meateor Australia, from a shareholding of 33% to 50%, was also a very pleasing and strategically important transaction."
2025 guidance
Looking ahead to the 2025 financial year, the directors provide an Underlying Net Profit After Tax Attributable to the Shareholder's guidance range of $35.0 million to $40.0 million.
- Key Points of the 2025 Guidance:
Global Proteins Division:
A continuation of 2024's strong financial performance is anticipated. Recent investments in the division are expected to contribute positively: - Meateor Australia is forecast to perform well as operations in Australia transition fully.
- Esro Petfood is expected to move into profitability later in 2025.
- Ongoing projects in the division are anticipated to positively impact earnings in future years.
- Horticulture Division, Mr Apple forecasts:
A crop of approximately 3.4 million TCEs, including a higher proportion of Premium varieties as a result of the Bostock and Craigmore transactions. - The forecast volume accounts for the impact of orchard redevelopment and the relinquishment of a small number of leases for underperforming orchards.
- Positive pricing is driven by an improved variety mix, larger apple sizes, and favorable exchange rates.
Logistics division:
While geopolitical uncertainty continues, the division is expected to maintain strong performance, providing valuable services to internal businesses and external customers alike.
Financial Implications:
- The guidance range implies:
- An Underlying Net Profit After Tax range of $53.0 million to $60.0 million.
- An Underlying EBITDA range of $92.0 million to $101.0 million.
For more information:
Andy Borland
Scales Corporation
Tel: +64 021 975 999
Email: [email protected]
www.scalescorporation.co.nz