Scales first-half profit rises
Mr Apple performs better than expected.
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UPDATED: Scales ups forecast annual apple volumes by 200k trays through to 2018 and Scales shares rise 2% as Mr Apple drives first-half earnings growth
EARLIER: The country's biggest apple exporter Scales Corp [NZX: SCL] posted a 61% gain in first-half profit as its Mr Apple unit performed better than expected.
The company also affirmed guidance for stronger annual earnings.
Net profit climbed to $32.2 million, or 23.8c per share, in the six months ended June 30, from $20.6 million, or 17.3c, a year earlier.
The Christchurch-based company’s earnings before interest, tax, depreciation and amortisation climbed 47% to $52.4 million on a 7.3% gain in sales to $161.2 million.
Scales' horticulture unit, which includes the Mr Apple business, boosted earnings 52% to $35 million on a 4% gain in revenue to $93.7 million.
"The result reflects the strong performance across all divisions, and particularly the vertically integrated Mr Apple business, which exceeded expectations across its operations, from orchards, packhouses, cool storage and export marketing," chief executive Andy Borland says.
"Looking ahead, Scales is well-positioned to benefit from expected increases in annual apple crops, improving FX rates, increased cold storage space, and improving utilisation and efficiency in our bulk liquid storage business."
Scales' food ingredients business lifted first-half sales 20% to $22.6 million for a 23% gain in segment profit to $3.4 million, while its storage and logistics segment increased sales 8.8% to $44.7 million for a 33% boost in earnings to $10.5 million.
Earlier this month Scales upgraded its annual earnings guidance based on the strong performance of the horticulture unit, saying ebitda is expected to be 25-35 % higher than its prospectus forecast for $41.2 million in calendar 2015, implying earnings of between $51.5-55.6 million for the year. The company today affirmed that guidance.
The board will consider an interim dividend payment later in the year, with the company's policy to evenly split the half- and full-year returns, paying them in January and July.
The shares last traded at $1.98, and have climbed 38% this year. The stock listed in July last year at an offer price of $1.60.
(BusinessDesk)
Paul McBeth
Thu, 27 Aug 2015
Thu, 27 Aug 2015
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Scales first-half profit rises
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