2024 Interim Results announcement

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



global nutrition

NZX & Media Release

28 August 2024

SCALES CORPORATION’S EARNINGS RECOVERING STRONGLY

Highlights – 6 months to 30 June 2024 (1H24)

• Underlying
1
NPAT
2
Attributable to Shareholders of $28.5 million (1H23: $14.5 million), up 97%
• Reported NPAT of $38.1 million (1H23: $14.3 million), up 167%
• Horticulture returning towards pre-Cyclone performance levels
• Global Proteins’ performance consistent with 1H23
• Logistics benefiting from higher volumes
• Execution of strategic growth transactions in both Horticulture and Global Proteins

Diversified agribusiness group Scales Corporation Limited (NZX:SCL) today reported its 1H24 results
with all divisions delivering strong earnings.

Scales Corporation’s Chair, Mike Petersen, noted: “The Horticulture division’s earnings are a very
positive reflection of the teams’ hard work post-Cyclone and Global Proteins delivered a consistent
result whilst executing its strategic initiatives.”

“It was satisfying to return to a more normal trading period, allowing the teams in each of the divisions
to concentrate on the growth objectives in each of their respective businesses. As ever, our results
are only achievable due to their effort and dedication every day.”

“It has also been pleasing to be able to execute on strategic growth transactions within Horticulture
and Global Proteins over the last 6 months, and we are excited by the opportunities that they will
afford us.”



1
Underlying results exclude some New Zealand International Financial Report Standards non-cash and other adjustments
2
Net Profit After Tax

Divisions

Global Proteins’ Underlying EBITDA
3
was $29.6 million (1H23: $30.1 million). Andy Borland,
Managing Director of Scales, commented: “It is encouraging to see Global Proteins continue to
produce consistent results. Shelby, our US operation, delivered volumes that were up on the prior 6
months and there was strong volume growth in Fayman, our edible proteins business.”

“Whilst Meateor Australia and Esro Petfood are both in a start-up phase, they are delivering increased
production volumes. Additionally, Meateor Australia has been improving yields whilst Esro Petfood
continues to focus on establishing its customer relationships.”

“We were very pleased to increase our investment in Meateor Australia in June from 33% to 50% and
now be a 50/50 partner in this business with the Fayman family. This solidifies our relationship with
Fayman and increases our foothold in the Australian market, which is strategically important to the
Global Proteins division.”

Horticulture delivered a strong result with Underlying EBITDA of $30.0 million (1H23: $11.4 million),
up 162%. This result includes 100% of Profruit earnings for the full 6-month period. Forecast total
own-grown export volumes for Mr Apple are 3.0 million TCEs
4
(2023: 2.7 million TCEs), a return to
2022 levels and a projected increase of 11% on 2023.

Mr Borland stated: “The results from the 2024 growing season are a credit to the effort and
determination exhibited by the Horticulture teams following Cyclone Gabrielle. It can also be, in part,
attributed to our strategy of increasing our investment in Premium apple varieties. Mr Apple is
forecasting a 25% increase in Premium volumes for 2024, with these varieties producing a higher
return compared to Traditional varieties.”

“Dazzle
TM
and Posy
TM
, volumes are forecast to increase 45% compared to 2023, with demand for
Dazzle
TM
continuing to outweigh supply in China. Dazzle
TM
and Posy
TM
are forecast to account for
almost 20% of 2024 Premium volumes and we expect a further uplift in volumes of these varieties in
2025 following our recent acquisition of orchards from the Bostock Group.”

“We were also delighted to fully welcome Profruit into Scales in this year following the acquisition of
the remaining 50% of the business from Bostock Group. It is a very well managed business and we
are delighted to have moved to outright ownership.”



3
Earnings Before Interest, Tax, Depreciation and Amortisation
4
Tray Carton Equivalents

Logistics benefitted from increased air and sea freight volumes with Underlying EBITDA of
$3.8 million compared to $2.7 million in 1H23, an increase of 44%. Mr Borland observed “Whilst
continuing to navigate ongoing supply chain difficulties, Logistics processed strong external customer
air freight volumes through its new Auckland warehouse and chiller facility. It also experienced a
return to more normal sea freight volumes in the first 6 months of the year. The strategic benefit of
this division continues to add value to the Group in excess of its financial returns.”

Full Year 2024 Outlook

The Directors are pleased to re-confirm that Underlying Net Profit after Tax Attributable to
Shareholders is expected to be within the previously advised range of $30.0 million to $35.0 million.

In re-confirming this guidance the Directors note:
• That the combined impact of the Bostock and Craigmore transactions has been taken into
account. This impact for FY24 is forecast at a marginal loss in Net Profit after Tax Attributable to
Shareholders
• Mr Apple has ~14% of the export crop to be sold (August 2023: ~26%)
• That the Global Proteins result for the year is forecast to be above original expectations but that
the 2H24 result appears unlikely to match 1H24’s result

Scales continues to evaluate opportunities to grow the Group, particularly within the Global Proteins
division.

Mr Petersen again expressed his thanks on behalf of his fellow Directors and Shareholders to all
Scales’ team members for their ongoing hard work and commitment, which has delivered the strong
financial performance for the first half of 2024.

About Scales Corporation
Scales Corporation is a diversified agribusiness portfolio. 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 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

---

SCALES CORPORATION LIMITED
Bringing Nutrition to the World
28 August 2024
Half Year Results
For the 6 Months Ended 30 June 2024

2
Scales Corporation Limited – 2024 Half Year Results
global nutrition
1.1H24 Overview and
Summary of Recent Transactions
2.Group Results
3.Divisional Performance and Update
4.Sustainability Update
5.FY24 Outlook
Appendices:
I.NZ IFRS Reconciliation
II.Disclaimer
Cover photo: Meateor Australia factory, Melbourne

1. 1H24 Overview and
Summary of Recent Transactions

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Scales Corporation Limited – 2024 Half Year Results
global nutrition
Divisional highlights
✓Completion of Bostock transaction in Horticulture, materially lifting our plantings of Dazzle
TM
and increasing our ownership of Profruit to 100%
✓Cementing Global Proteins’ presence in Europe and increasing our holding in Meateor Australia
✓New Logistics Auckland warehouse and chiller facility operational, supporting strong airfreight volumes
* Underlying Results exclude some New Zealand International Financial Report Standards (NZ IFRS) non-cash and other adjustments. Management and the Board believe that Underlying Results more accurately demonstrate the change in operational performance of
the Group. Underlying NPAT and Underlying EBITDA are shown before the deduction of share of Non-Controlling Interests. Note that our definition of “Underlying” includes the effects of NZ IFRS 16 Leases in line with current market practice. All Underlying result
numbers, including comparatives, are now inclusive of NZ IFRS 16 effects. A reconciliation of Underlying to Reported Measures is provided in Appendix I.
Group summary
✓Group earnings recovering strongly:
✓Horticulture returning towards pre-Cyclone performance levels
✓Global Proteins’ performance consistent with 1H23
✓Financial results for 1H24 are in line with expectations:
✓Underlying* NPAT Attributable to Shareholders of $28.5m (1H23: $14.5m), up 97%
✓Reported NPAT of $38.1m (1H23: $14.3m), up 167%
✓Execution of strategic growth transactions in both Horticulture and Global Proteins
✓Directors re-confirm FY24 Guidance of Underlying Net Profit after Tax Attributable to Shareholders between $30.0m and $35.0m

5
Scales Corporation Limited – 2024 Half Year Results
global nutrition
Building on our mission to be the foremost investor in global agribusiness
Acquired ~240ha of planted orchards
and 50% of Profruit from Bostock Group
Conditional sale of ~186ha of planted orchards to
a fund managed by Craigmore Sustainables
Increased investment in Meateor
Australia from 33% to 50%
✓Announced May 2024, settled June 2024✓Announced July 2024✓Announced and settled June 2024
✓Acquisition cost of $47.5m✓Sale price of $34.0m
✓Total cost of the 50% stake of
AUD$11.5m
✓~114ha of owned orchards✓Te Papa and Blyth orchards
✓Represents a 50% share of capex and
working capital requirements
✓Assignment of ~126ha of leased orchards
✓Blyth orchard to be leased back to Mr Apple until the
end of the 2027 season
✓Facility fully operational, having passed all
customer audits
✓High concentration of Dazzle
TM
plantings
(~110ha)
✓Mr Apple to provide short-term management
services to the Te Papa orchard
✓Sales contracts for 2024 in line with
expectations
✓Profruit now a wholly-owned subsidiary
of Scales
✓Fruit from both orchards to be supplied to
Mr Apple for packing, storage and marketing under a
long-term agreement
✓Expected increase in Horticulture’s
Underlying EBITDA (pre-IFRS 16) of
~$10m-12m
*
over the medium term
✓Expected decrease in Horticulture’s Underlying
EBITDA (pre-IFRS 16) of ~$4m over the medium term
* Profit contribution includes an increased share of Profruit earnings together with anticipated margins achieved by bringing the responsibility for shipping and marketing in-house

2. Group Results

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Scales Corporation Limited – 2024 Half Year Results
global nutrition
Group earnings recovering strongly
•Reported NPAT Attributable to Shareholders of $28.1m (up 623% on 1H23)
•Underlying NPAT Attributable to Shareholders of $28.5m (up 97% on 1H23)
•Underlying NPAT of $38.4m (up 55% on 1H23)
•Underlying EBITDA of $60.5m (up 46% on 1H23)

8
Scales Corporation Limited – 2024 Half Year Results
global nutrition
Strong results from all divisions
•Global Proteins – consistent result with 1H23 whilst executing strategic initiatives
•Horticulture – returning towards pre-Cyclone profitability
•Logistics – benefiting from higher air and sea freight volumes

9
Scales Corporation Limited – 2024 Half Year Results
global nutrition











The financial position of the Group remains strong
•Net Debt of $81.9m as at 30 June 2024 vs $29.8m as at 30 June 2023:
◦Reflects investments made during the 6-month period
◦Forecasting a return to a net cash position at 31 December 2024, assuming settlement of orchard sales
•Agricultural produce represents unsold fruit at 30 June:
◦As at 30 June 2024, 54% of crop sold (30 June 2023: 46%)
Net Debt Reconciliation ($m)

3. Divisional Performance
and Update

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Scales Corporation Limited – 2024 Half Year Results
global nutrition
Delivering consistent earnings
•Underlying EBITDA of $29.6m (1H23: $30.1m)
•Shelby continued to deliver strong volumes, up on 2H23
•Whilst Meateor Australia and Esro Petfood are both in a start-up phase, they are delivering increased production volumes
•Additionally, Meateor Australia has been improving yields whilst Esro Petfood continues to focus on establishing customer relationships
•Strong growth in edible protein volumes within Fayman
Volumes Sold (MT 000s)
Underlying EBITDA ($m)

12
Scales Corporation Limited – 2024 Half Year Results
global nutrition
Producing stable revenue and earnings per kg
•FY23 vs 1H24 performance:
◦A number of our petfood ingredients business units have generated
improved margins in 1H24
◦However, start-up costs from Esro Petfood have offset some of these
margin improvements
Petfood Ingredients Revenue and Underlying EBITDA / KG
*
* Margins calculated above may differ slightly from previously reported numbers due to adjustments made to reflect the true operational performance of the petfood ingredients businesses

13
Scales Corporation Limited – 2024 Half Year Results
global nutrition
9 key projects across New Zealand, Australia, United States and Europe underpin our growth target
Petfood ingredients
•New toll processing plant in the United States:
◦Building and services complete, plant installation underway, commissioning expected Q4 2024
•New processing facility in the Netherlands:
◦Building development ongoing, project on track for commissioning Q4 2024
•Blending project in the United States:
◦Customer audits and specifications complete with commercial and test loads being delivered
•New in-plant collection and cooling system in the United States:
◦USDA approvals granted, the plant is now fully operational
•Meateor Australia:
◦All customer approvals and audit processes complete, have been focused on increasing
volumes and yields in 1H24
Other ongoing projects
•Salmon proteins - continuing to investigate
options for supply in the United States
•Undertaking a feasibility study for a second
European site
•Investigating securing additional supply from
another major plant in the United States
•Assessing options for additional capacity in
New Zealand

14
Scales Corporation Limited – 2024 Half Year Results
global nutrition
Result underpinned by increased premium volumes
•Underlying EBITDA $30.0m (1H23: $11.4m):
◦Includes 100% of Profruit earnings for the full 6 months
•In-market pricing meeting expectations
•Forecast increase of ~11% for Mr Apple’s total own-grown export volumes at 3.0m TCEs (2023: 2.7m TCEs):
◦This is down on expectations due to a lower than forecast apple pick and smaller fruit size
•25% forecast increase in Premium volumes, which generate higher margins
◦Premium volumes forecast to account for ~72% of total volumes sold (2023: 64%)
Horticulture - Underlying EBITDA ($m)Mr Apple Own Export Volumes (TCE 000s)

15
Scales Corporation Limited – 2024 Half Year Results
global nutrition
Mr Apple Premium volumes make pleasing return to 2022 levels
•~45% increase in Dazzle
TM
and Posy
TM
compared to 1H23
•Dazzle
TM
and Posy
TM
forecast to account for almost 20% of forecast 2024 Premium
volumes (2023: 15%). There will be a further uplift in 2025 with the acquisition of the
Bostock orchards
•Asia & Middle East sales expected to comprise 81% of total fruit sold (2023: 77%):
◦Continued high demand for Dazzle
TM
in Asia & Middle East, with demand exceeding supply in
China
•Shipping disruptions proving to be a challenge for many overseas markets
•Export packout to date approximately 78% (2023: 71%)
•Profruit 1H24 sales volumes of 3,251k litres, up 16% on 1H23, driven by:
◦Increased apple supply
◦Strong offshore demand, in particular from the United States, for our locally produced
juice concentrate
Premium Volumes (TCE 000s)
Sales by Region (TCEs) FY24F*
* Actual sales by region will not finally be known until all fruit is sold. Sales to Asia and Middle East are predominantly in USD. North American sales are in CAD and USD.
UK and Europe are sales predominantly in their respective currencies

16
Scales Corporation Limited – 2024 Half Year Results
global nutrition
Benefitting from increased air and sea freight volumes
•Underlying 1H24 EBITDA of $3.8m (1H23: $2.7m), an increase of 44%
•Strong external customer air freight volumes processed through the new Auckland
warehouse and chiller facility
•A return to more normal sea freight volumes
•Continuing to navigate ongoing supply chain difficulties including geopolitical tensions
Logistics - Underlying EBITDA ($m)
The new warehouse and chiller facility at Pavilion Drive, Auckland

4. Sustainability Update

18
Scales Corporation Limited – 2024 Half Year Results
global nutrition
•Ongoing Scope 3 screening exercise
*
to identify other value chain sources,
and their methodologies, for inclusion into FY24’s emissions inventory
•Completed our assurance readiness workstream, which assessed our emissions
inventory reporting process in preparation for FY24 limited assurance requirements
•Commenced engagement with our businesses to identify decarbonisation options,
using the roadmaps that were completed in 2022/2023:
◦These will form the basis of our target setting after our FY24 base year has been established
•Currently updating our climate scenarios, based on the latest physical data and
sector reviews, to update our risk and opportunities assessment in FY24
Continuing to make progress on our sustainability initiatives
* Scope 3 screening establishes a foundation for assessing the emissions footprint across a company’s value chain

5. FY24 Outlook

20
Scales Corporation Limited – 2024 Half Year Results
global nutrition
•Directors re-confirm that Underlying Net Profit after Tax Attributable to Shareholders is expected to be within the previously advised range of
$30.0m to $35.0m
•In re-confirming this guidance Directors note:
◦That the combined impact of the Bostock and Craigmore transactions has been taken into account. This impact for FY24 is forecast at a marginal loss in
Net Profit Attributable to Shareholders
◦Mr Apple has ~14% of the export crop to be sold (August 2023: ~26%)
◦That the Global Proteins result for the year is forecast to be above original expectations but that the 2H24 result appears unlikely to match 1H24’s result
•Scales continues to evaluate opportunities to grow the Group, particularly within the Global Proteins division
Scales re-confirms its FY24 guidance

Appendices

22
Scales Corporation Limited – 2024 Half Year Results
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23
Scales Corporation Limited – 2024 Half Year Results
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24
Scales Corporation Limited – 2024 Half Year Results
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The information in this presentation has been prepared by Scales Corporation Limited with due care and attention. However, neither Scales Corporation Limited nor any of its directors, employees,
shareholders nor any other person shall have any liability whatsoever to any person for any loss (including, without limitation, arising from any fault or negligence) arising from this presentation or
any information supplied in connection with it.
This presentation supplements our half year results announcement. It should be read subject to and in conjunction with the additional information in that release, and other material which we have
released to the NZX.
This presentation may contain projections or forward-looking statements regarding a variety of items. Such projections or forward-looking statements are based on current expectations, estimates
and assumptions and are subject to a number of risks, uncertainties and assumptions. There is no assurance that results contemplated in any projections and forward-looking statements in this
presentation will be realised. Actual results may differ materially from those projected in this presentation. No person is under any obligation to update this presentation at any time after its release
to you or to provide you with further information about Scales Corporation Limited.
Our results are reported under NZ IFRS. This presentation includes non-GAAP financial measures which are not prepared in accordance with NZ IFRS. The non-GAAP financial measures used in
this presentation include:
•EBITDA. We calculate EBITDA by adding back (or deducting) depreciation, amortisation, finance charges / (revenue), and taxation expense to net earnings / (loss) from continuing operations
•EBIT. We calculate EBIT by adding back (or deducting) finance charges / (revenue), and taxation expense to net earnings / (loss) from continuing operations
•Underlying EBITDA and EBIT are calculated by adding back (or deducting) certain non-cash NZ IFRS and other adjustments
•Underlying Net Profit is calculated by adding back or (or deducting) the after-tax effect of certain non-cash NZ IFRS and other adjustments
We believe that these non-GAAP financial measures provide useful information to readers to assist in the understanding of our financial performance, financial position or returns, but that they
should not be viewed in isolation, nor considered as a substitute for measures reported in accordance with NZ IFRS. Non-GAAP financial measures may not be comparable to similarly titled
amounts reported by other companies.
Forward-looking statements are subject to any material adverse events, significant one-off expenses or other unforeseeable circumstances.
The information in this presentation is of a general nature and does not constitute financial product advice, investment advice or any recommendation. Nothing in this presentation constitutes
legal, financial, tax or other advice.

---

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)





Results for announcement to the market
Name of issuer Scales Corporation Limited
Reporting Period 6 months to 30 June 2024
Previous Reporting Period 6 months to 30 June 2023
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$318,101 3%
Total Revenue $318,101 3%
Net profit/(loss) from
continuing operations
$28,149 623%
Total net profit/(loss) $28,149 623%
Interim/Final Dividend
Amount per Quoted Equity
Security
Not Applicable
Imputed amount per Quoted
Equity Security
Not Applicable
Record Date Not Applicable
Dividend Payment Date Not Applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$2.54 $2.26
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Please refer to the attached reports for commentary and
unaudited condensed interim financial statements.
Authority for this announcement
Name of person

authorised
to make this announcement
Steve Kennelly
Contact person for this
announcement
Steve Kennelly
Contact phone number +64 3 3712263
Contact email address steve.kennelly@scalescorporation.co.nz
Date of release through MAP

28/08/2024

Unaudited financial statements accompany this announcement.

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Scales Corporation Limited
Condensed Consolidated Interim Financial Statements
for the six months ended 30 June 2024

Scales Corporation Limited
Contents
Directory3
Consolidated statement of comprehensive income4
Consolidated statement of changes in equity6
Consolidated statement of financial position7
Consolidated statement of cash flows8
Notes to the condensed consolidated interim financial statements10
2

Scales Corporation Limited
Directory
Board of DirectorsAuditor
Mike Petersen (Chair)Deloitte Limited
Andrew Borland (Managing Director)Level 4
Tony Batterton151 Cambridge Terrace
Miranda BurdonChristchurch 8013
Nick Harris
Alan IsaacBankers
Qi XinANZ Bank New Zealand Limited
Nadine TunleyLevel 3
ANZ Centre
Audit and Risk Management Committee267 High Street
Alan Isaac (Chair)Christchurch 8011
Nick Harris
Tony BattertonCoöperatieve Rabobank U.A., New Zealand Branch
Level 4
Nominations and Remuneration Committee32 Hood Street
Tony Batterton (Chair)Hamilton 3204
Mike Petersen
Westpac New Zealand Limited
Finance and Treasury CommitteeLevel 4
Tony Batterton (Chair)The Terrace
Andrew Borland83 Cashel Street
Mike PetersenChristchurch 8011
Health & Safety and Sustainability CommitteeSolicitors
Miranda Burdon (Chair)Anthony Harper
Andrew BorlandLevel 9
Anthony Harper Tower
Registered Office62 Worcester Boulevard
52 Cashel StreetChristchurch 8013
Christchurch 8013
New ZealandChapman Tripp
23 Albert Street
Postal AddressAuckland 1010
PO Box 1590
Christchurch 8140Corporate Advisor
New ZealandMaher & Associates
17 Albert Street
TelephoneAuckland 1010
+64 3 379 7720
Share Registry
WebsiteComputershare Investor Services Limited
www.scalescorporation.co.nzLevel 2
159 Hurstmere Road
Takapuna
North Shore City
Auckland 0622
3

Scales Corporation Limited
Consolidated statement of comprehensive income for the six months ended 30 June 2024
UnauditedAudited
Six months endedYear ended
30 June
2024
30 June
2023
31 December
2023
Note$000's$000's$000's
Revenue6318,101309,368565,356
Cost of sales(233,089)(242,972)(444,662)
85,01266,396120,694
Administration and operating expenses(29,123)(31,415)(64,123)
Impairment of property, plant and equipment-(4,015)(4,729)
Impairment of goodwill-(8,531)(8,531)
Share of profit of entities accounted for using the equity method3,9562,7948,131
Other income3,3725,7988,569
Other losses(1,738)(554)(6,336)
EBITDA61,47930,47353,675
Amortisation(306)(246)(497)
Depreciation(5,616)(5,283)(10,245)
Depreciation of right-of-use asset(4,397)(4,484)(8,711)
EBIT51,16020,46034,222
Finance revenue1,4018792,056
Finance cost(2,025)(1,532)(3,331)
Finance cost of lease liability(1,749)(1,515)(3,144)
PROFIT BEFORE INCOME TAX EXPENSE48,78718,29229,803
Income tax expense5(10,717)(4,017)(5,129)
PROFIT FOR THE PERIOD38,07014,27524,674
Profit for the period is attributable to:
Equity holders of the Company28,1493,8965,235
Non-controlling interests9,92110,37919,439
38,07014,27524,674
EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY:
Basic earnings per share (cents)819.82.73.7
Diluted earnings per share (cents)819.82.73.7
The notes to the financial statements form part of and should be read in conjunction with this statement.
4

Scales Corporation Limited
Consolidated statement of comprehensive income for the six months ended 30 June 2024 (continued)
UnauditedAudited
Six months endedYear ended
30 June
2024
30 June
2023
31 December
2023
$000's$000's$000's
PROFIT FOR THE PERIOD38,07014,27524,674
OTHER COMPREHENSIVE INCOME
Items that may be reclassified subsequently to profit or loss:
(Loss) gain on cash flow hedges(10,136)(8,987)11,231
Income tax relating to cash flow hedges2,8382,516(3,145)
Share of other comprehensive income of joint ventures(362)(690)1,554
Income tax relating to share of other comprehensive income of joint ventures15416022
Foreign exchange gain on translating foreign operations1,6921,069307
(5,814)(5,932)9,969
Items that will not be reclassified to profit or loss:
Revaluation of land and buildings-(13,416)(3,122)
Income tax relating to buildings-671(740)
Revaluation of apple trees-(1,818)936
Income tax relating to apple trees-509(262)
Remeasurement of net defined benefit liability--238
Income tax relating to remeasurement of net defined benefit liability--(36)
-(14,054)(2,986)
OTHER COMPREHENSIVE (LOSS) INCOME FOR THE PERIOD(5,814)(19,986)6,983
TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD32,256(5,711)31,657
Total comprehensive income for the period attributable to:
Equity holders of the Company22,335(16,090)12,123
Non-controlling interests9,92110,37919,534
32,256(5,711)31,657
The notes to the financial statements form part of and should be read in conjunction with this statement.
5

Scales Corporation Limited
Consolidated statement of changes in equity for the six months ended 30 June 2024
Share
capitalReserves
Retained
earnings
Attributable to
owners of the
Company
Non-
controlling
interestsTotal
Note$000's$000's$000's$000's$000's$000's
Unaudited
Six months ended 30 June 2024
At 1 January 2024103,44599,435170,472373,35211,596384,948
Profit for the year--28,14928,1499,92138,070
Other comprehensive loss for the period-(5,814)-(5,814)-(5,814)
Total comprehensive income for the period-(5,814)28,14922,3359,92132,256
Recognition of share-based payments-339-339-339
Shares sold------
Shares fully vested1,289(418)(131)740-740
Dividends7--(6,042)(6,042)(8,536)(14,578)
Balance at 30 June 2024104,73493,542192,448390,72412,981403,705
Unaudited
Six months ended 30 June 2023
At 1 January 2023101,97592,590189,875384,4407,374391,814
Profit for the year--3,8963,89610,37914,275
Other comprehensive loss for the period-(19,986)-(19,986)-(19,986)
Total comprehensive loss for the period-(19,986)3,896(16,090)10,379(5,711)
Recognition of share-based payments-248-248-248
Shares sold96--96-96
Shares fully vested1,374(499)(145)730-730
Dividends7--(18,451)(18,451)(6,407)(24,858)
Balance at 30 June 2023103,44572,353175,175350,97311,346362,319
Audited
Year ended 31 December 2023
At 1 January 2023101,97592,590189,875384,4407,374391,814
Profit for the year--5,2355,23519,43924,674
Other comprehensive income for the period-6,888-6,888956,983
Total comprehensive income for the period-6,8885,23512,12319,53431,657
Recognition of share-based payments-456-456-456
Shares sold96--96-96
Shares fully vested1,374(499)(145)730-730
Dividends7--(24,493)(24,493)(15,312)(39,805)
Balance at 31 December 2023103,44599,435170,472373,35211,596384,948
The notes to the financial statements form part of and should be read in conjunction with this statement.
6

Scales Corporation Limited
Consolidated statement of financial position as at 30 June 2024
UnauditedAudited
Six months endedYear ended
30 June
2024
30 June
2023
31 December
2023
Note$000's$000's$000's
EQUITY
Share capital104,734103,445103,445
Reserves993,54272,35399,435
Retained earnings192,448175,175170,472
Equity attributable to Scales Corporation Limited shareholders390,724350,973373,352
Equity attributable to non-controlling interests12,98111,34611,596
TOTAL EQUITY403,705362,319384,948
CURRENT ASSETS
Cash and bank balances39,87837,73377,638
Trade and other receivables116,77597,31534,029
Current tax assets1,4885283,938
Other financial assets103,3062,3835,989
Agricultural produce65,73462,70924,222
Inventories39,88346,70329,543
Prepayments4,5555,4924,337
271,619252,863179,696
Assets held for sale1428,950--
TOTAL CURRENT ASSETS300,569252,863179,696
NON-CURRENT ASSETS
Property, plant and equipment243,237203,090221,219
Investments accounted for using the equity method60,10256,89363,902
Goodwill38,40638,25136,972
Defined benefit plan net asset62-60
Other financial assets1035,21815,52629,077
Computer software9951,1841,160
Right-of-use asset61,22251,89349,572
TOTAL NON-CURRENT ASSETS439,242366,837401,962
TOTAL ASSETS739,811619,700581,658
CURRENT LIABILITIES
Trade and other payables86,80074,38326,446
Dividend declared76,04813,4916,041
Borrowings25,500--
Current tax liabilities7,4542,922616
Other financial liabilities1020,13520,30918,524
Lease liability12,66610,78810,963
TOTAL CURRENT LIABILITIES158,603121,89362,590
NON-CURRENT LIABILITIES
Borrowings96,27367,53565,647
Deferred tax liabilities515,3895,91117,104
Defined benefit plan net liability-178-
Other financial liabilities1011,12014,9096,699
Lease liability54,72146,95544,670
TOTAL NON-CURRENT LIABILITIES177,503135,488134,120
TOTAL LIABILITIES336,106257,381196,710
NET ASSETS403,705362,319384,948
The notes to the financial statements form part of and should be read in conjunction with this statement.
7

Scales Corporation Limited
Consolidated statement of cash flows for the six months ended 30 June 2024
UnauditedAudited
Six months endedYear ended
30 June
2024
30 June
2023
31 December
2023
Note$000's$000's$000's
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Receipts from customers242,046260,660571,987
Insurance proceeds--4,809
Government grants received251,3881,986
Dividends and distributions received-500751
Interest received1,2157681,814
243,286263,316581,347
Cash was disbursed to:
Payments to suppliers and employees(238,510)(279,741)(502,201)
Interest paid(3,774)(3,047)(6,475)
Income tax paid(3,557)(4,424)(7,971)
(245,841)(287,212)(516,647)
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES(2,555)(23,896)64,700
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from:
Advances repaid131156255
Sale of property, plant and equipment7-(424)
138156(169)
Cash was applied to:
Purchase of property, plant and equipment(44,508)(4,795)(16,808)
Purchase of computer software(141)(98)(325)
Acquisition of subsidiary, net of cash acquired(10,947)--
Advances to joint ventures(10,269)(2,745)(11,869)
(65,865)(7,638)(29,002)
NET CASH USED IN INVESTING ACTIVITIES(65,727)(7,482)(29,171)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash was provided from:
Drawdowns of seasonal facility borrowings25,500--
Drawdowns of term facility borrowings56,00027,30627,306
Treasury stock sold-9696
81,50027,40227,402
Cash was applied to:
Dividends paid(6,035)(13,463)(26,955)
Dividends paid to non-controlling interests(8,536)(6,407)(15,312)
Repayments of borrowings - seasonal(3,437)--
Repayments of borrowings - term(29,087)--
Repayments of lease liabilities(4,258)(4,419)(8,420)
(51,353)(24,289)(50,687)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES30,1473,113(23,285)
NET (DECREASE) INCREASE IN NET CASH(38,135)(28,265)12,244
Net foreign exchange difference375222(382)
Cash and cash equivalents at the beginning of the period77,63865,77665,776
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD39,87837,73377,638
Represented by:
Cash and bank balances39,87837,73377,638
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD39,87837,73377,638
The notes to the financial statements form part of and should be read in conjunction with this statement.
8

Scales Corporation Limited
Consolidated statement of cash flows for the six months ended 30 June 2024 (continued)
UnauditedAudited
Six months endedYear ended
30 June
2024
30 June
2023
31 December
2023
Note$000's$000's$000's
NET CASH GENERATED BY OPERATING ACTIVITIES
Reconciliation of profit for the year to net cash generated by operating activities:
Profit for the year38,07014,27524,674
Non-cash items:
Depreciation (including on right-of-use asset)10,0139,76718,956
Share of equity accounted results(3,956)(2,794)(8,131)
Gain on fair value equity investment(3,304)--
Hedging instruments1,8092,361(416)
Deferred tax(1,085)(8,159)(4,867)
Fair value loss on interest-free related party loans, net of interest income1,463-1,913
Share-based payments339248456
Amortisation306246497
Change in value of call and put options895544,121
(Gain) loss on lease modification(36)(162)(177)
Foreign exchange on related party loans7-232
Gain on disposal of property, plant and equipment(7)(3,159)(118)
Impairment on revaluation-4,0154,729
Impairment of goodwill-8,5318,531
Interest capitalised into loans-(111)(111)
JV purchase price receivable-(1,089)(1,307)
Operating cash receipts not included in profit for the period:
Dividends received from equity accounted entities-500750
Changes in net assets and liabilities:
Trade and other receivables(78,151)(50,994)9,662
Agricultural produce(41,512)(37,560)927
Inventories7,908(3,739)13,040
Prepayments183(700)445
Trade and other payables57,06436,322(11,131)
Current tax assets and liabilities8,2457,7522,025
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES(2,555)(23,896)64,700
For and on behalf of the Board of Directors who authorised the issue of these interim financial statements on 27 August 2024.
Mike Petersen, ChairAndy Borland, Managing Director
9

Scales Corporation Limited
Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2024
1. GENERAL INFORMATION
Scales Corporation Limited (the "Company" or "Scales") is a for-profit entity domiciled and registered under the
Companies Act 1993 in New Zealand. It is an FMC reporting entity for the purposes of the Financial Markets Conduct Act
2013 and the Financial Reporting Act 2013. The Group consists of Scales, its subsidiaries and joint ventures. The principal
activities of the Group are to manufacture and trade food ingredients, grow apples, provide logistics services, export products,
provide insurance services to companies within the Group and operate processing facilities.
2. BASIS OF PREPARATION
These unaudited condensed consolidated interim financial statements have been prepared in accordance with Generally
Accepted Accounting Practice (“GAAP”). They comply with the New Zealand Equivalent to International Accounting
Standard 34 (NZ IAS 34)Interim Financial Reportingand International Accounting Standard 34 (IAS 34)Interim
Financial Reporting, as applicable to for-profit orientated entities. The significant accounting policies applied by the Group
during the period have been applied consistently to all periods presented in these condensed consolidated interim
financial statements. These financial statements should be read in conjunction with the financial statements and related
notes included in the Company’s Annual Report for the year ended 31 December 2023.
The information is presented in thousands of New Zealand dollars unless otherwise stated.
3. SEASONALITY OF BUSINESS
Higher volumes are processed through the Global Proteins plants in the first half of the year due to the seasonal nature of the
meat industry.
There is greater utilisation of Logistics services over the first half of the year as seasonal products are shipped to export markets.
The Horticulture business segment is subject to seasonal fluctuation. The apple crop has been picked, with packing and the export
programme well underway, as at 30 June. At 30 June the harvested crop held in inventory is valued at fair value less estimated
costs to sell. At 31 December the unharvested crop is valued at fair value less estimated costs to sell. Both the harvested crop at
30 June and the unharvested crop at 31 December are included in agricultural produce.
4. SEGMENT INFORMATION
Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable
basis. No single external customer’s revenue accounts for 10% or more of the Group’s revenue. All non-current assets are
located in New Zealand, Australia, the Netherlands and the United States of America.
The Group's operations comprise the following operating segments:
Global Proteins: processing and marketing of proteins such as petfood ingredients, edible meat and offal products.
Meateor Foods Limited, Meateor Foods Australia Pty Limited, Meateor Group Limited, Meateor US LLC,
Shelby JV LLC Group (Shelby Cold Storage LLC, Shelby Exports Inc, Shelby Foods LLC, Shelby JV LLC, Shelby Properties LLC,
Shelby Trucking LLC), Meateor GP Limited, Meateor Pet Foods Limited Partnership, Scales FI Group Holdings Pty Limited,
Meateor Australia Pty Limited, FI Group Holdings Pty Limited Group (FI Group Holdings Pty Limited,
Fayman International Group Pty Limited and Fayman New Zealand Limited), ANZ Exports Pty Limited and Esro Petfood B.V.
Horticulture: orchards, fruit packing, juice concentrate processing and marketing. Mr Apple New Zealand Limited,
New Zealand Apple Limited, Fern Ridge Produce Limited, Longview Group Holdings Limited and Profruit (2006) Limited.
Logistics: logistics services. Scales Logistics Limited and Scales Logistics Australia Pty Ltd.
Other: Scales Corporation Limited, Geo. H. Scales Limited, Scales Employees Limited, Scales Holdings Limited
and Selacs Insurance Limited.
10

Scales Corporation Limited
Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2024
4. SEGMENT INFORMATION (CONTINUED)
Global
Proteins
HorticultureLogisticsOtherEliminationsTotal
$000's$000's$000's$000's$000's$000's
Unaudited
Six months ended 30 June 2024
Total segment revenue141,733134,47156,3412,796(17,240)318,101
Inter-segment revenue--(15,542)(1,698)17,240-
Revenue from external customers141,733134,47140,7991,098-318,101
Segment profit (loss) before income tax28,06222,3282,886(4,489)-48,787
Segment assets169,000520,11129,84020,860-739,811
Segment liabilities29,972166,01520,129119,990-336,106
Unaudited
Six months ended 30 June 2023
Total segment revenue151,128122,55154,3631,802(20,476)309,368
Inter-segment revenue--(19,157)(1,319)20,476-
Revenue from external customers151,128122,55135,206483-309,368
Segment profit (loss) before income tax30,277(2,093)2,273(12,165)-18,292
Segment assets179,903405,80922,02611,962-619,700
Segment liabilities30,081139,72111,94575,634-257,381
Audited
Year ended 31 December 2023
Total segment revenue298,547209,93992,5683,007(38,705)565,356
Inter-segment revenue--(35,684)(3,021)38,705-
Revenue from external customers298,547209,93956,884(14)-565,356
Segment profit (loss) before income tax51,655(15,938)3,236(9,150)-29,803
Segment assets177,176324,68920,79758,996-581,658
Segment liabilities30,30188,69612,65765,056-196,710
5. TAXATION
The Taxation (Annual Rates for 2023-24, Multinational Tax, and Remedial Matters) Act, which received Royal Assent
on 28 March 2024, removes the ability to depreciate most buildings with a life over 50 years for income tax deduction
purposes. For the Group, the application of this legislative change under NZ IAS 12Income Taxessets the tax base for certain
buildings owned by New Zealand domiciled business units to nil from 1 January 2024 onwards. This increases the deferred
taxation liability by $2.1m and creates a one-off non-cash adjustment to the taxation expense for deferred tax on buildings
for the six months ended 30 June 2024 of the same amount. The application of NZ IAS 12 which creates this deferred
taxation liability does not reflect income tax payable if the buildings were sold.
11

Scales Corporation Limited
Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2024
6. REVENUE
UnauditedAudited
Six months endedYear ended
30 June
2024
30 June
2023
31 December
2023
$000's$000's$000's
By nature:
Revenue from the sale of goods266,102264,884492,874
Revenue from the rendering of services53,14346,17277,271
Fees and commission-(5)16
Net foreign exchange (loss) gain(4,160)(4,708)(9,450)
Rental revenue3,0163,0254,645
318,101309,368565,356
By segment and type:
Global Proteins - sale of petfood ingredients135,686146,923290,216
Global Proteins - other6,0474,2058,331
Horticulture - sale of agricultural produce125,212112,726193,759
Horticulture - agricultural produce related services6,2436,80511,543
Horticulture - other3,0163,0204,637
Logistics services40,79935,20656,884
Other1,098483(14)
318,101309,368565,356
7. DIVIDENDS
During the six months ended 30 June 2024 the Company paid an interim dividend of 4.25 cents per share and declared a
final dividend of 4.25 cents per share in respect of the year ended 31 December 2023. This final dividend was paid on 12 July 2024.
During the six months ended 30 June 2023 the Company paid interim dividends totalling 9.5 cents per share and declared a
final dividend of 9.5 cents per share in respect of the year ended 31 December 2022. This final dividend was paid on 7 July 2023.
8. EARNINGS PER SHARE
UnauditedAudited
Six months endedYear ended
30 June
2024
30 June
2023
31 December
2023
Profit attributable to equity holders of the Company ($000's):28,1493,8965,235
Weighted average number of shares:
Ordinary shares142,062,077141,729,183141,831,545
Effect of dilutive ordinary shares (non-vested Senior Executive Share Scheme)26,524-116,268
Weighted average number of ordinary shares for diluted earnings per share142,088,601141,729,183141,947,813
Earnings per share (cents):
Basic19.82.73.7
Diluted19.82.73.7
12

Scales Corporation Limited
Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2024
9. RESERVES
Revaluation
Cash flow
hedge
Share of joint
ventures
Equity-
settled
employee
benefits
Foreign
exchange
translation
Pension plan
reserveTotal reserves
$000's$000's$000's$000's$000's$000's$000's
Unaudited
Six months ended 30 June 2024
At 1 January 202490,3575,4002,0941,0394697699,435
Other comprehensive income (loss)-(7,298)(208)-1,692-(5,814)
Recognition of share-based payments---339--339
Shares fully vested---(418)--(418)
Balance at 30 June 202490,357(1,898)1,8869602,1617693,542
Unaudited
Six months ended 30 June 2023
At 1 January 202393,545(2,686)5181,082162(31)92,590
Other comprehensive (loss) income(14,054)(6,471)(530)-1,069-(19,986)
Recognition of share-based payments---248--248
Shares fully vested---(499)--(499)
Balance at 30 June 202379,491(9,157)(12)8311,231(31)72,353
Audited
Year ended 31 December 2023
At 1 January 202393,545(2,686)5181,082162(31)92,590
Other comprehensive (loss) income(3,188)8,0861,576-3071076,888
Recognition of share-based payments---456--456
Shares fully vested---(499)--(499)
Balance at 31 December 202390,3575,4002,0941,0394697699,435
13

Scales Corporation Limited
Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2024
10. FINANCIAL INSTRUMENTS AND FAIR VALUE DISCLOSURES
UnauditedAudited
Six months endedYear ended
30 June
2024
30 June
2023
31 December
2023
$000's$000's$000's
Current financial assets at fair value:
Foreign currency derivative instruments2,5031,6445,217
Interest rate swap contracts and forward rate agreements803739772
3,3062,3835,989
Non-current financial assets:
At fair value:
Foreign currency derivative instruments10,1146,58313,678
Interest rate swap contracts and forward rate agreements238793262
Joint venture call option149-171
Shares in unlisted companies375184184
At amortised cost:
Employee loans2,7122,2022,103
Related party loans21,6305,76412,679
35,21815,52629,077
Current financial liabilities at fair value:
Foreign currency derivative instruments5,5009,4974,554
Put option14,63510,81213,970
20,13520,30918,524
Non-current financial liabilities at fair value:
Foreign currency derivative instruments11,12014,9096,699
11,12014,9096,699
Foreign currency derivative instruments
The Group is exposed to currency risk as a result of normal trading transactions denominated in foreign currencies. The Group
uses foreign currency derivative financial instruments to manage its currency risk. The fair value of foreign currency
derivative financial instruments at the reporting date is determined on a discounted cash flow basis whereby future cash
flows are estimated based on forward exchange rates and contract forward rates, discounted at a rate that reflects the credit
risk of various counterparties. The Group’s forward foreign exchange contracts and foreign exchange options are classified as
Level 2 in the fair value hierarchy.
These foreign currency instruments are designated as cash flow hedges in order to reduce the Group’s cash flow exposure
resulting from movements in foreign currency exchange rates on anticipated future transactions. It is anticipated that the
sales will take place during the 2024 to 2029 financial years at which stage the amount deferred in equity will be released into
profit or loss.
14

Scales Corporation Limited
Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2024
10. FINANCIAL INSTRUMENTS AND FAIR VALUE DISCLOSURES (CONTINUED)
Interest rate swap contracts and forward rate agreements
The Group is exposed to interest rate risk as it borrows funds at floating interest rates. Management monitors the level of
interest rates on an ongoing basis and uses interest rate swaps and forward rate agreements to manage interest rate risk.
Under interest rate swap contracts and forward rate agreements, the Group agrees to exchange the difference between fixed
and floating interest rate amounts calculated on agreed notional principal amounts. Such contracts, some of which may
commence in future reporting years, enable the Group to mitigate the risk of changing interest rates on the cash flow
exposures of the issued floating rate debt. The fair value of these contracts at the reporting date is determined by
discounting the future cash flows using the forward interest rate curves at reporting date and the credit risk inherent in the
contracts. The average contracted fixed interest rate is based on the notional principal amount at balance date. The Group’s
interest rate swap contracts and forward rate agreements are classified as Level 2 in the fair value hierarchy.
These interest rate swap contracts and forward rate agreements, exchanging floating rate interest amounts for fixed rate
interest amounts, are designated as cash flow hedges in order to reduce the Group’s cash flow exposure resulting from
floating interest rates on borrowings. The interest rate swap and forward rate agreement payments, and the interest
payments on the loans occur simultaneously, and the amount deferred in equity is recognised in profit or loss over the
period that the floating rate interest payments on debt impact profit or loss.
11. RELATED PARTY DISCLOSURES
(a) Transactions with related parties
Certain directors or senior management have relevant interests in companies with which Scales has transactions
in the normal course of business. A number of Scales' directors are also non-executive directors of other
companies. Any transactions undertaken with these entities have been entered into in the ordinary course of business
on a third party arm’s-length basis.
UnauditedAudited
Six months endedYear ended
30 June
2024
30 June
2023
31 December
2023
$000's$000's$000's
(b) Key management personnel remuneration
The compensation of the directors and executives, being the key management personnel
of the Group, is as follows:
Short-term employee benefits and directors' fees5,8172,4038,622
Share-based payments206133295
Post-employment benefits16875263
6,1912,6119,180
(c) Transactions with equity accounted entities
Revenue from sale of goods3,1272,0524,079
Revenue from services6,4173,9737,388
Loss on related party loans1,649-2,044
Dividends and distributions received-500750
Interest received646111323
Materials and services received(3,011)(479)(1,001)
Trade payables at balance date(264)--
Trade receivables at balance date2,2602671,628
Related party loans21,6305,76412,679
15

Scales Corporation Limited
Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2024
12. ACQUISITION OF APPLE ORCHARDS AND PROFRUIT (2006) LIMITED
On 16 May 2024 the Group entered into an agreement to acquire certain assets from Bostock Group Limited ("Bostock").
The total acquisition price of $47.5m included $35.9m for approximately 240 hectares of planted orchard area comprised of
approximately 114 hectares of owned orchards and the assignment of approximately 126 hectares of leased orchards, as well as
$11.6m for the purchase of 50% of Profruit (2006) Limited ("Profruit") held by Bostock (collectively the Transaction).
The acquisition settled on 13 June 2024.
The acquired orchards have a high concentration of premium apple variety plantings and are optimally located,
with strong strategic alignment to existing Mr Apple orchards.
The purchase of orchards was treated as an acquisition of assets. The purchase of 50% of Profruit was treated as a business
combination.
Details of the Profruit acquisition are as follows (note the fair values on acquisition have been determined provisionally given
the proximity of the acquisition to the balance date):
Carrying
value on
acquisition
Fair value on
acquisition
(provisional)
$000's$000's
Current assets
Cash and bank balances653653
Trade and other receivables4,1204,120
Derivatives155155
Inventory14,77617,874
Right-of-use asset239239
Other assets390390
Non-current assets
Land and buildings3,0823,920
Plant and equipment2,9717,608
Derivatives102102
Current liabilities
Trade and other payables(1,906)(1,906)
Current tax payable(1,196)(1,196)
Derivatives(76)(76)
Lease liability(118)(118)
Other liabilities(932)(932)
Borrowings(3,437)(3,437)
Non-current liabilities
Deferred tax liabilities(39)(2,206)
Derivatives(41)(41)
Lease liability(122)(122)
Borrowings(2,007)(2,007)
Net assets acquired16,61423,022
Fair value of identifiable assets acquired and liabilities assumed23,022
Consideration paid in cash11,600
Fair value of the previously held equity interest11,600
Goodwill178
16

Scales Corporation Limited
Notes to the condensed consolidated interim financial statements for the six months ended 30 June 2024
12. ACQUISITION OF APPLE ORCHARDS AND PROFRUIT (2006) LIMITED (CONTINUED)
A gain of $3.3m was recognised as a result of measuring at fair value the 50% equity interest in Profruit held prior to
the business combination. The gain is included in other income in the consolidated statement of comprehensive income
for the six months ended 30 June 2024.
The revenue included in the consolidated statement of comprehensive income since acquisition contributed by Profruit
was $2.6m. Profruit was break even over the same period.
Had Profruit been consolidated from 1 January 2024 the consolidated statement of comprehensive income would have
included revenue of $13.6m and profit of $1.10m.
13. CAPITAL COMMITMENTS
UnauditedAudited
Six months endedYear ended
30 June
2024
30 June
2023
31 December
2023
$000's$000's$000's
Commitments entered into in respect of apple trees1,2951,8301,540
Commitments entered into in respect of property, plant and equipment-363469
1,2952,1932,009
14. ASSETS HELD FOR SALE
As at 30 June 2024, Blyth and Te Papa apple orchards, owned by the Group subsidiary Mr Apple New Zealand Limited ("Mr Apple"),
were classified as held for sale. The orchard assets are included in the Horticulture segment.
Subsequent to 30 June 2024, Mr Apple entered into an agreement to sell the Blyth and Te Papa apple orchards to a fund managed by
Craigmore Sustainables for a combined acquisition price of $34.0 million. The transaction is subject to approval by the
Overseas Investment Office.
As part of the transaction, applicable fruit from both orchards will be supplied to Mr Apple for packing, storage and marketing
under a long-term agreement. In addition, to assist with orchard transition, Blyth orchard will be leased back to Mr Apple until
the end of the 2027 season and Mr Apple will provide short-term management services for the Te Papa orchard.
15. EVENTS OCCURRING AFTER BALANCE DATE
There were no other events occurring subsequent to balance date which require adjustment to, or disclosure, in the
financial statements.
17