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



8 December 2023


MARKET UPDATE

2023 TRADING
The directors of Scales Corporation Limited (NZX:SCL) have reiterated market guidance for the
twelve months to 31 December 2023, of an Underlying Net Profit after Tax Attributable to
Shareholders range of $14.0 million to $19.0 million.
Managing Director Andy Borland notes “2023 has been a very challenging year, particularly for our
Hawke’s Bay staff and the wider community, following Cyclone Gabrielle. We are very proud of the
resilience shown by all of our team members in response to this event. Their ability and effort in
resuming operations and remediating damaged orchards was outstanding. It is very pleasing to see
the “fruits” of this work with all affected orchard area now cleared of silt and remediated, and with a
promising 2024 apple crop currently on the trees.
As previously reported, Scales continues to benefit from our diversified nature and, once again this
year, from the performance of the Global Proteins division. Trading has continued positively in the
second half of the year, despite the impact of post-COVID rebalancing of inventories amongst petfood
manufacturers.
We are particularly pleased with the expansion into the European petfood ingredients market this
year, via joint venture Esro Petfood BV. This investment is further positive progress in the
international expansion of the Global Proteins division and we look forward to providing further
commentary on the division at the time of the 2023 results release, in February next year”.

2024 GUIDANCE
Looking ahead to the 2024 financial year, directors advise an Underlying Net Profit after Tax
Attributable to Shareholders Guidance range of $30.0 million to $35.0 million.
In providing Guidance for 2024, directors note:

• The Horticulture division is forecast to return to more normal trading following the negative
impact of Cyclone Gabrielle in 2023. More detail regarding Mr Apple’s trading expectations is
provided below;
• In the Global Proteins division, a continued strong performance is anticipated, albeit with
some proteins, in particular lamb, being affected by the inventory rebalancing noted above;
• Our most recent investments in the Global Proteins division, Meateor Australia and Esro
Petfood, commenced production in 2023. The start-up nature of both of these businesses
means they are not forecast to contribute positively to 2024 Group earnings;
• The Guidance range implies:
o an Underlying Net Profit after Tax range of between $47.0 million and $55.0 million;
and
o an Underlying EBITDA range of between $81.0 million and $91.0 million.

DIVIDENDS
The directors have also declared a fully imputed interim cash dividend for the 2023 financial year of
4.25 cents per share, to be paid on 18 January 2024. The directors note that, in line with the current
dividend policy, they would expect total dividends for 2023 to be split approximately evenly between
interim and final (with the final dividend to be paid in July 2024), and that total 2023 dividends would
be between 50% and 75% of Underlying Net Profit after Tax Attributable to Shareholders.
The directors also note that based on the profit guidance for 2024, it is expected that dividends paid in
respect of 2024 would be higher than that likely for 2023.
Lastly, due both to the increasingly offshore nature of the Group’s earnings and the impact of Cyclone
Gabrielle on the Horticulture divisions earnings this year, it is likely that dividends after the 2023 year
will be partially, rather than fully, imputed.

MR APPLE UPDATE
Whilst Cyclone Gabrielle took a significant toll on orchard production for the 2023 season, we are
pleased to report that damage extending beyond the 2023 season is limited.
Total planted orchard area is currently 1,100 hectares, which is approximately 5% below the total area
at the same time last year. The reduction in planted area relates to cyclone damage that has yet to
be replanted and relinquished orchard leases. Assuming a return to normal levels of production,
current indications are for a crop of approximately 3.4 million export TCEs in 2024.
Our PVRs Dazzle
TM
and Posy
TM
continue to perform strongly through the Asia markets and we have
taken the opportunity to accelerate development of both of these varieties during 2023. We are very
pleased with how they are performing and look forward to increased sales volumes becoming
available as historical plantings continue to mature. The business is also expected to benefit in 2024
from favourable tailwinds in foreign exchange rates and shipping prices.

About Scales Corporation
Scales Corporation is a diversified agribusiness group. It comprises three operating divisions: Global
Proteins, Horticulture, and Logistics. The company’s diverse spread of activities gives Scales broad
exposure to the agribusiness sector. Scales Corporation was founded in 1897 as a shipping business
by George Herbert Scales. Today it has operations across New Zealand, Australia, United States and
Europe. 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 08/01/2024
Ex-Date 05/01/2024
Payment date 18/01/2024
Total monies associated with the
distribution
$6,081,579.19
Source of distribution (for example,
retained earnings)
RETAINED EARNINGS
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution $0.05902778
Total cash distribution $0.04250000
Excluded amount (applicable to listed
PIEs)
$0.00000000
Supplementary distribution amount $0.00750000
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
$0.01652778
Resident Withholding Tax per financial
product
$0.00295139
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

08/12/2023