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 Full Year results, released on 26 February 2025:

EXCELLENT FINANCIAL PERFORMANCE WHILST DELIVERING ON GROWTH STRATEGY

Highlights – 12 months to 31 December 2024

Diversified agribusiness group Scales Corporation Limited (NZX:SCL) today reported its FY2024 full year results. Reported NPAT Attributable to Shareholders was $30.7 million (FY2023: $5.2 million). Reported basic earnings per share for FY2024 were 21.6 cents per share (FY2023: 3.7 cents per share).

Underlying NPAT Attributable to Shareholders of $34.3 million (FY2023: $19.0 million) was towards the top end of the FY2024 guidance range. Underlying earnings per share for FY2024 were 24.1 cents per share (FY2023: 13.4 cents per share).

Group FY2024 financial results:

• Underlying NPAT of $53.6million, up 39 per cent (FY2023: $38.4 million)
• Reported NPAT of $50.0 million, up 103 per cent (FY2023: $24.7 million)
• Underlying EBITDA of $91.7 million, up 36 per cent (FY2023: $67.5 million)
• Revenue of $584.6 million, up 3 per cent (FY2023: $565.4 million)

Divisional summary:

• The Global Proteins division produced a strong result during a period of expansion
• Horticulture’s performance is returning to more normal levels
• The Logistics division generated a record result supported by higher ocean and air freight volumes

Mike Petersen, Chair of Scales Corporation, commented: “We are proud of the hard work invested by each of our teams, which has produced record Group Underlying EBITDA and Underlying NPAT as well as Underlying EBITDA growth across all operating divisions.”

“The Group made admirable progress on its growth strategy, executing several M&A transactions within the Horticulture and Global Proteins divisions during 2024. The net impact of these transactions on the FY2024 financial result was negligible although we expect these transactions to positively impact earnings in future periods.”