Scales Corp earnings up 20pc

Photo / Glenn Taylor

Christchurch-based agribusiness company Scales Corp said its net profit rose by 20 per cent to $20.4 million in calendar 2013

The company's total revenue increased 17.2 per cent on 2012 to $278.1 million, with higher apple volumes and prices the single largest contributor.

Managing director Andy Borland said 2013 had been a strong year for the business with strong performances from all three divisions.

Scales was once part of South Canterbury Finance, which collapsed under a mountain of debt in August 2010. The company is now majority-owned by Auckland investment company Direct Capital.

The company, one of New Zealand's oldest, is involved in horticulture and primary sector processing, exporter and logistics businesses.

Scales has been subject of media speculation that it would seek a listing on the NZX. In a separate statement, chairman Jon Mayson said: "While the Scales board regularly reviews whether or not a listing on NZX would be beneficial, we aren't in a position to confirm anything at this time.''

Borland said Scales was increasing apple volumes targeted at premium Asian markets, including redder, sweeter varieties.

Nationally there were higher dairy, meat and crop volumes that required cold storage.

"This situation is expected to continue on the back of continuing improvement in farm productivity and the increasing areas of farm land, particularly in the South Island, becoming part of community irrigation schemes,'' Borland said.

Scales subsidiary Mr Apple's crop produced a record 2.82 million cartons packed and exported from the company's orchards.