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






9 December 2020


SCALES CORPORATION DECLARES INTERIM DIVIDEND AND REAFFIRMS 2020 GUIDANCE

The directors of Scales Corporation Limited (NZX:SCL) have declared a fully imputed interim cash
dividend for the 2020 financial year of 9.5 cents per share, to be paid on 15 January 2021. 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, although at a level no greater than actual Net Profit for
each year.
Directors have also reaffirmed Guidance for the twelve months to 31 December 2020 at the lower end
of the previously announced Underlying Net Profit range, of $30.0 million to $36.0 million, although it
should be noted that the earnings mix for the Group, by division, will differ from previous years.
Managing Director Andy Borland says “The 2020 year has been a challenging one across the Group.
Consequently, it is very pleasing to be able to be continuing to forecast a solid financial result. Scales
has benefitted this year from our diversified nature, and from the leadership and hard work of every
team member.”
“Whilst 2020 has seen considerable disruption, not only have all businesses operated successfully,
we have continued with growth initiatives. At Mr Apple, a further 36 hectares have been redeveloped
into premium apple varieties, and the new coolstore adjacent to the Whakatu packhouse will be
operational for the 2021 season. In the US, Shelby has seen the commissioning of a new processing
plant to support on-going demand from pet food brands. Other investment opportunities, both within
our existing businesses and externally, continue to be sought.
Looking ahead to the 2021 financial year, directors have provided full year Guidance of Underlying
Net Profit at a Group level of between $30.0 million and $36.0 million, which is unchanged from 2020
initial Guidance.

In providing Guidance for 2021, directors note:
• The Group has assumed the current initiatives to source seasonal labour will be sufficient to
meet the Group’s requirements;
• Increased operating costs associated with the industry undertakings to boost access for New
Zealand workers, supplemented by RSE availability;
• Although there remains an elevated level of in-market uncertainty, business units are now
forecasting results consistent with the 2020 year, supplemented by improved apple market
returns in Asia and Near Markets;
• The Group is expecting materially lower levels of expansion capital expenditure for the 2021
year;
• The Guidance range implies an Underlying EBITDA range of between $49.0 million and $55.0
million, also unchanged from 2020 initial Guidance;
• Guidance is prior to adjustments for Non-controlling Interests;
• A further update will be provided as part of the 2020 year-end announcement, scheduled for
February 2021.


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 05/01/2021
Ex-Date (one business day before the
Record Date)
04/01/2021
Payment date (and allotment date for
DRP)
15/01/2021
Total monies associated with the
distribution
$13,498,599.50
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

09/12/2020