Scales Corp's Mr Apple is New Zealand's biggest apple exporter. Photo / Supplied
Scales Corp's Mr Apple is New Zealand's biggest apple exporter. Photo / Supplied
Agribusiness company Scales Corp said its underlying annual net profit slipped by 7 per cent to $27.6m in 2022, near the top end of previously-advised guidance, with its global protein business mostly offsetting a decline in the horticulture division.
And the company is still evaluating the impact of Cyclone Gabrielle.
The company said there was further outperformance by its Global Proteins business, with a record result, complemented by strategic investments made in Australia.
Lockdowns in China resulted in material reductions in market prices during critical sales windows, especially during the latter parts of the season, adversely impacting the group’s Horticulture results.
Logistics continued its growth trajectory, and provided vital support to both internal and external customers.
Directors said Scales’ dividend policy would revert to 50 per cent to 75 per cent of underlying net profit in 2023, down from a previous policy of 100 per cent.
The company, which through its unit Mr Apple is New Zealand’s biggest apple exporter, said it was still evaluating the financial impact of Cyclone Gabrielle.
Scales had previously withdrawn its earnings guidance due to the wide-ranging impacts of Cyclone Gabrielle on Hawke’s Bay orchards.
“However, we expect to provide updated guidance as soon as practicable once the financial impacts of the cyclone are fully understood,” the company said.
Underlying ebitda for Global Proteins was a record $60.2m, up 80 per cent.
The horticulture division produced an underlying ebitda of $17.0m, down from $40.8m a year earlier.
Logistics delivered a record underlying ebitda, of $6.6 million, up 33 per cent.
Apples strewn across a Hawke's Bay road in Cyclone Gabrielle's aftermath. Photo / Angus Dreaver, RNZ
Scales’ total revenue came to $619.2 million, up 20 per cent on the previous year’s.
Managing director Andy Borland said Global Proteins continued to outperform expectations with its significant growth over the year.
Pet food ingredient volumes sold increased by 6 per cent, with revenue increasing 46 per cent over the same period.
“The Horticulture division was impacted by lockdowns in China together with lower volumes, higher shipping costs and labour availability,” he said.
Scales’ cash position, at $27m, remained strong, providing the company with the ability to rebuild from the cyclone damage and invest in further growth opportunities.
The company declared dividends of 15.5 cents per share during the year.
