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Scales forecasts full-year after-tax profit of $14-19 million

December 8, 2023
in Business
Scales forecasts full-year after-tax profit of $14-19 million
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Apple generic. Generic bin of Hawke's Bay apples.

Managing director Andy Borland said 2023 was a tough year, especially for its Hawke’s Bay staff, following Cyclone Gabrielle.
Photo: RNZ / Tom Kitchin

Apple, pet food and logistics group Scales Corporation has reaffirmed its guidance for the 12 months ending December.

It says its underlying profit after tax would be in the range of $14-19 million.

It also said next year’s underlying profit was expected to be between $30-35m, which was in line with pre-Covid levels.

Managing director Andy Borland said 2023 was a tough year, especially for its Hawke’s Bay staff, following Cyclone Gabrielle.

“We are very proud of the resilience shown by all of our team members in response to this event. Their ability and effort in resuming operations and remediating damaged orchards was outstanding,” he said.

“It is very pleasing to see the ‘fruits’ of this work with all affected orchard areas now cleared of silt and remediated, and with a promising 2024 apple crop currently on the trees.”

The company said its horticulture division would return to more normal trading following the impact of the cyclone.

Borland said Scales continued to benefit from its diverse offering.

“Trading has continued positively in the second half of the year, despite the impact of post-Covid rebalancing of inventories amongst pet food manufacturers.

“We are particularly pleased with the expansion into the European pet food ingredients market this year, via joint venture Esro Petfood BV,” Borland said.

The company’s board also declared an interim cash dividend of 4.25 cents per share, to be paid next month.

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