Market update

Scales Corporation Limited
Head Office: 52 Cashel Street | Christchurch 8013 | New Zealand
Postal: PO Box 1590 | Christchurch 8140 | New Zealand
Phone: +64 3 379 7720
scalescorporation.co.nz





5 December 2019

SCALES CORPORATION DECLARES INTERIM DIVIDEND AND REAFFIRMS 2019 GUIDANCE

The directors of Scales Corporation Limited (NZX:SCL) have declared a fully imputed interim cash
dividend for the 2019 financial year of 9.5 cents per share, to be paid on 17 January 2020. The
directors reiterate their commitment to paying an annual cash dividend level of no less than 19 cents
per share whilst the company holds Net Cash.
Directors have also reaffirmed guidance for the twelve months to 31 December 2019 of an Underlying
Net Profit of between $32.0 million and $37.0 million based on current forecasts.
This past year has further reinforced our current strategy and, in particular, the replanting plan for the
Horticulture Division. During the 2019 winter the company has redeveloped 44 hectares into premium
apple varieties, with a further 32 hectares scheduled for the winter of 2020.
Managing Director Andy Borland says “For the 2019 season all premium apple varieties to Asia and
Near Markets have experienced record sales results, while our traditional varieties had mixed results,
particularly late season sales to Europe and the UK. Although the near-term forecasts for fruit
volumes remain flat, the Group expects significant returns from the replanting program from the 2022
year, in line with our earlier announcements.
As always, we are grateful to the tireless efforts of the entire Scales team”.
Looking ahead to the 2020 financial year, directors have provided full year guidance of Underlying Net
Profit of between $30m and $36m.
In providing Guidance for 2020, directors note:
• As previously advised, the Horticulture division’s forecast apple volumes will be impacted by
the ongoing redevelopment work undertaken on Mr Apple’s orchards;
• A material increase in capital expenditure within the Horticultural division to address
increasing domestic costs, including labour;

• The guidance range implies an Underlying EBITDA range of between $49m and $55m, which
is unchanged from 2019;
• Interest income has reduced due to lower rates and the past interest benefit from the sale of
the Storage business;
• A further update will be provided as part of the 2019 year end announcement scheduled for
February 2020.


About Scales Corporation
Scales Corporation is a diversified agribusiness group. It comprises three operating divisions:
Horticulture, Food Ingredients and Logistics. The company’s diverse spread of activities gives Scales
broad exposure to New Zealand’s agribusiness sector. Scales Corporation was founded in 1897 as a
shipping business by George Herbert Scales. Today it has operations across New Zealand, Australia
and the United States. Find out more at www.scalescorporation.co.nz.
Contact
Andy Borland, Managing Director, Scales Corporation Limited, Mob: 021 975 999, email:
andy.borland@scalescorporation.co.nz

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Distribution Notice




Section 1: Issuer information
Name of issuer SCALES CORPORATION LIMITED
Financial product name/description ORDINARY SHARES
NZX ticker code SCL
ISIN (If unknown, check on NZX
website)
NZSCLE0002S8
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 07/01/2020
Ex-Date (one business day before the
Record Date)
06/01/2020
Payment date (and allotment date for
DRP)
17/01/2020
Total monies associated with the
distribution
$13,450,027.61
Source of distribution (for example,
retained earnings)
RETAINED EARNINGS
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution $0.13194400
Total cash distribution $0.09500000
Excluded amount (applicable to listed
PIEs)
$0.00000000
Supplementary distribution amount $0.01676500
Section 3: Imputation credits and Resident Withholding Tax
Is the distribution imputed Fully imputed
If fully or partially imputed, please
state imputation rate as % applied
100%
Imputation tax credits per financial
product
$0.03694432
Resident Withholding Tax per financial
product
$0.00659720
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
STEVE KENNELLY
Contact person for this announcement STEVE KENNELLY
Contact phone number 03 371-2263
Contact email address steve.kennelly@scalescorporation.co.nz
Date of release through MAP

05/12/2019