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Highlights

  • In 1HFY24, profit before tax surged 166.7% YoY to NZD 48.8 million, an increase of NZD 30.5 million.
  • The company projects FY25 underlying NPAT of NZD 35 million – NZD 40 million.
  • Esro Petfood is anticipated to achieve profitability later in 2025

New Zealand-based agribusiness company, Scales Corporation Limited (NZX:SCL) operates across Global Proteins, Horticulture, and Logistics divisions. As of 17 January 2025, the company has market capitalisation of NZD 604.4 million.

Financial Performance in H1FY24

SCL has reported notable improvements in the first half of the financial year 2024 (1HFY24), ending 30 June 2024. Key highlights include:

  • Revenue Growth: The company posted revenue of NZD 318.1 million in 1HFY24, reflecting a 2.8% YoY increase from NZD 309.4 million in 1HFY23.
  • EBIT Surge: Earnings Before Interest and Tax (EBIT) reached NZD 51.16 million, marking a significant increase of NZD 30.7 million compared to the previous period.
  • Profit Before Tax: The company’s profit before income tax surged 166.7% YoY, reaching NZD 48.8 million—an increase of NZD 30.5 million from H1FY23.

During the reported period, the company has executed its strategic growth transaction within Global Proteins and Horticulture divisions.

Company Outlook

Looking ahead to FY 2025, SCL expects to achieve an underlying NPAT attributable to shareholders between NZD 35 million and NZD 40 million. The company expects continued good performance in the Global Proteins division, with investments such as Meateor Australia contributing positively. Additionally, Esro Petfood is projected to achieve profitability later in 2025.

Despite geopolitical uncertainties, SCL’s logistics division has been performing well, delivering external customer air freight volumes through its new Auckland warehouse and chiller facility.

Share performance of SCL

SCL shares closed 0.24% lower at NZD 4.21 per share on 17 February 2025. Over the past year, SCL’s share price has increased by nearly 33.87% and in a month, it has dropped by almost 1.19%.

52-week high of SCL is NZD 4.37, recorded on 17 January 2025 and 52-week low is NZD 3.00, recorded on 12 March 2024.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 17 February 2025. The reference data in this report has been partly sourced from EODHD/Others.