Scales (SCL) H2 2024 earnings summary

Executive summary

• Achieved record financial results in FY2024, with underlying EBITDA of NZD 91.7 million (up 36%) and underlying NPAT of NZD 53.6 million, driven by strong growth across all divisions and successful execution of growth strategy.

• Reported NPAT attributable to shareholders rose nearly 500% year-over-year to NZD 30.7 million, reflecting operational improvements and one-off adjustments.

• Group revenue increased 3% year-over-year to NZD 595 million, supported by increased ownership of Profruit and strong Global Proteins and Logistics performance.

• All operating divisions delivered underlying EBITDA growth, with Logistics and Global Proteins posting record or strong results.

• Major acquisitions included 240 hectares of orchards and the remaining 50% of Profruit, expanding the Horticulture segment.

Financial highlights

• Underlying NPAT attributable to shareholders reached NZD 34.3 million, near the top end of guidance, and reported NPAT surged to NZD 30.7 million from NZD 5.2 million year-over-year.

• Underlying EBITDA up 36% to NZD 91.7 million; group ROCE improved to 14.5%, exceeding the 12.5% target.

• Revenue rose 3% to NZD 584.6 million compared to FY23.

• Net cash position remained stable at NZD 12.5 million despite M&A activity and dividend payments.

• Dividends per share: 8.5 cents (down from 19.0 cents in FY23); total payout between 50–75% of underlying NPAT.

Outlook and guidance

• FY2025 guidance for underlying NPAT attributable to shareholders is NZD 35–40 million, with underlying EBITDA expected between NZD 92–101 million.

• Global Proteins expected to maintain strong performance; Esro Petfood to reach profitability by year-end.

• Horticulture forecasts higher premium apple volumes and positive pricing trends, with ~3.4m TCEs for Mr Apple.

• Logistics expected to perform well despite geopolitical uncertainties.

• Dividend payments to be split evenly, totaling 50–75% of underlying NPAT.