Monday, April 22, 2024

Weather affects Scales’ profit

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Apple exporter Scales Corporation has reported a lower annual profit after in-market prices dropped slightly from earlier record levels and higher orchard costs were incurred combating poor weather.
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The after-tax profit for the year ended December 31 was $31.8 million, down from $38.2m a year earlier. 

The Mr Apple subsidiary is the biggest part of the Scales business and its operating earnings (Ebitda) fell to $38.9m from $45.3m.

That was partly offset by a strong result in the storage and logistics business with Ebitda up to $19.1m from $16.2m, helped by expansion and organic growth.

The food ingredients business had Ebitda of $8m, down from $9.2m.

Group revenues were a record $399m, from $374m. Operating earnings (Ebitda) were $61m, down from $67.3m.

The profit was at a very satisfying level given the difficult growing season for Hawke’s Bay orchards and some competitive trading conditions, chairman Tim Goodacre said. 

Mr Apple’s like-for-like production was just 5% down on the record 2016 volumes. 

Apple picking for this season has just started, slightly ahead of normal harvest times, Goodacre said. 

Early crop indications are positive.

Earnings a share for the year were 22.6c, down from 27.4c a year earlier. 

Managing director Andy Borland said a final dividend was expected to be declared in May for payment in July. 

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