Scales Corporation Limited logo

2025 Annual Results Announcement

Full Year Results24 February 2026SCLIndustrials

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




NZX & Media Release


25 February 2026


GROWTH STRATEGIES DELIVERING RECORD RESULTS


Highlights – 12 Months to 31 December 2025


Diversified agribusiness group Scales Corporation Limited (NZX:SCL) today reported its FY2025 full

year results. Reported NPAT

1

Attributable to Shareholders was $101.0 million (FY2024 (restated)

2

:

$30.3 million). Reported basic earnings per share for FY2025 were 70.7 cents per share

(FY2024 (restated): 21.3 cents per share).


Underlying

3

NPAT Attributable to Shareholders was $61.8 million (FY2024 (restated): $34.1 million)

and Underlying earnings per share for FY2025 were 43.3 cents per share (FY2024 (restated): 24.0

cents per share).


• Group FY2025 financial results:

o Underlying NPAT of $77.6 million, up 45 per cent (FY2024 (restated): $53.4 million)

o Reported NPAT of $117.7 million, up 137 per cent (FY2024 (restated): $49.6 million)

o Underlying EBITDA

4

of $137.6 million, up 50 per cent (FY2024 (restated): $91.7 million)

o Revenue of $899.9 million, up 54 per cent (FY2024: $584.6 million)


• Divisional summary:

o The Horticulture division delivered an outstanding result through increased volumes, prices

and improved variety mix

o Solid performance by Global Proteins with strong results for Shelby, Meateor Australia,

Meateor NZ and Fayman International

o Another record Logistics result driven by a significant increase in volumes




1

Net Profit After Tax

2

FY2024 results have been restated for an increase in apple tree valuations

3

Underlying results exclude some New Zealand International Financial Reporting Standards (NZ IFRS) non-cash and other

adjustments. In line with current market practice, “Underlying” includes the effects of NZ IFRS 16 Leases. A reconciliation

between Net Profit and Underlying Net Profit, EBITDA and Underlying EBITDA is provided in Appendix A of our annual results

presentation pack

4

Earnings Before Interest, Tax, Depreciation and Amortisation

2



Mike Petersen, Chair of Scales Corporation, noted: “By any measure, FY2025 has been an

outstanding year for Scales Corporation and its divisions. At a time when international markets are

facing unprecedented change and geopolitical tension, our teams have excelled to deliver us a superb

performance.”


“During 2025 we increased our investments in Shelby, Meateor Australia, Fayman International and

ANZ Exports, further progressing our growth strategy. As a result of these investments, the Global

Proteins FY2027 Underlying EBITDA target has increased from $70 million to $85 million.”


Andy Borland, Managing Director of Scales Corporation, commented: “Horticulture delivered an

outstanding result driven by increased apple export volumes and average prices. Our Bostock

acquisition last year was also a key component of this result, allowing us to fast-track our long-term

strategy of investing in apple varieties targeted to the Asia & Middle East markets.”


“The increased investments in our Global Proteins joint venture businesses are strategically important

for our long-term growth objectives. Each of the businesses is operating well, with Shelby, Meateor

Australia, Meateor NZ and Fayman International performing particularly strongly.”


“We continue to have a healthy financial position. Net debt as at 31 December 2025 was $84.1 million

(net cash of $12.5 million as at 31 December 2024), reflecting the investments made during FY2025 in

Global Proteins’ joint venture businesses.”


During 2025, Scales paid dividends of 15.0 cents per share

5

. Dividend payments for FY2025 are

likely to be made in two instalments, with the first instalment of 12.5 cents per share having been paid

on 23 January 2026. A second instalment will be reviewed and advised on in early May 2026.


“As ever, the Board and I would like to thank each Scales team member for their hard work and

energy. The Group and its results would not be what it is without their commitment and enthusiasm.”


Divisions


Global Proteins

Underlying EBITDA for Global Proteins was $73.9 million (FY2024: $55.4 million), an increase of

33 per cent.


Mr Borland stated “The division delivered increases in both petfood ingredients and edible proteins

sales volumes.”



5

Scales declared the following dividends in respect of FY2024, which were paid in 2025:

• an interim dividend of 7.25 cents per share on 4 December 2024, paid on 17 January 2025

• a final dividend of 7.75 cents per share on 30 April 2025, paid on 11 July 2025

3



“We also realised the benefits of our increased investments in our joint venture businesses with a solid

performance by Shelby whilst it transitioned to a new toll processing facility and Meateor Australia and

Meateor NZ performing significantly ahead of forecast with margins ahead of expectations. Fayman

International also had a strong performance, increasing sales to both the South-East Asia and United

States markets.”


Horticulture

The Horticulture division produced an Underlying FY2025 EBITDA of $65.2 million (FY2024 (restated):

$37.7 million), an increase of 73 per cent.


Mr Borland remarked “Horticulture produced an outstanding result. Increased apple export volumes

and average prices were enhanced by the amalgamation of Bostock orchards, which performed

ahead of expectations. In addition, grower returns were positively impacted by an increased

proportion of Premium variety volumes such as Dazzle

TM

and Posy

TM

.


Profruit delivered another exceptional performance underpinned by strong sales prices in our export

markets.”


“Mr Apple’s own-grown export volume of 3,681k TCEs

6

was 21 per cent up on last year (2024: 3,033k

TCEs), with our strategically important markets of Asia and Middle East comprising 84 per cent of total

fruit sold (2024: 79 per cent).”


“Premium volumes accounted for approximately 74 per cent of total export sale volumes, with

significant growth in Dazzle

TM

and Posy

TM

as well as Red Sports varieties. We estimate that Premium

apple varieties will account for around 80 per cent of export volumes by 2027.”


Logistics

Logistics delivered another record Underlying EBITDA of $7.6 million (FY2024: $6.9 million), an

increase of 10 per cent.


Mr Borland noted “Logistics processed a significant increase in volumes due to strong volumes from

the dairy sector and a positive cherry season, providing an extremely robust result for the division. It

also benefited from strong apple volumes.”


“Its strategy of supporting both internal and external customers is proving to be beneficial to its growth

strategy.”




6

Tray carton equivalent, a measure of apple and pear weight, defined as 18.6kg packed weight which equates to 18.0kg sale

weight

4



Outlook


Mr Petersen commented: “The exceptional Group performance in FY2025, particularly in the

Horticulture division, was aided by a number of positive earnings drivers.”


“In FY2026, Global Proteins is expected to perform strongly and continue to realise the benefits of its

increased investments. Mr Apple has commenced picking and packing for the 2026 apple season,

with a crop of around 3.5 million TCEs forecast. Pricing is expected to be favourable. Logistics is

expected to contribute positively and has seen continued strong air freight demand in the year to

date.”


“Accordingly, the Board is pleased to confirm the previously advised FY2026 guidance of Underlying

Net Profit after Tax Attributable to Shareholders of between $50.0 million to $55.0 million, implying an

Underlying Net Profit After Tax range of $67.0 million to $73.0 million and an Underlying EBITDA

range of $129.0 million to $136.0 million.”


Mr Petersen also stated “I would like to add my appreciation to all Scales teams for their ability to

successfully execute the strategic objectives of the Scales Group. We are fortunate to have such a

dedicated workforce, with each of them embracing the Scales culture. On behalf of the Scales’

Directors and Shareholders, thank you.”


Contact

Andy Borland, Managing Director, Scales Corporation Limited, Mob: 021 975 999,

email: andy.borland@scalescorporation.co.nz


About Scales Corporation

Scales Corporation is a diversified investor operating predominantly in the agribusiness sector. It

comprises three operating divisions: Global Proteins, Horticulture, and Logistics. The Company’s

diverse spread of activities gives Scales Corporation global operational exposure. 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.

---

Bringing Nutrition
to the World

Annual Results Presentation

For the Year Ended 31 December 2025

25 February 2026

Scales Corporation Limited

2Scales Corporation Limited – 2025 Full Year Results
Agenda

01. FY25 Results

Summary

Group Performance

Divisional Performance

Capital Management

Sustainability and Governance

02. FY26 Outlook

03. Appendices

NZ IFRS Reconciliation

Disclaimer

Dazzle

TM

apples in Clive orchard

01.
FY25

Results

Mr Apple exhibition, Vietnam

Shelby’s new in-plant collection and cooling system
Summary

Production at the Esro Petfood plant

5Scales Corporation Limited – 2025 Full Year Results
FY25 Summary

Record Group result:

Strong performance across all divisions

Includes positive impact from increased shareholdings in joint

venture businesses

Delivered record results across all earning measures:

Underlying

1

EBITDA of $137.6m (FY24 (Restated

2

): $91.7m), up 50%

Underlying NPAT of $77.6m (FY24 (Restated): $53.4m), up 45%

Underlying NPAT Attributable to Shareholders of $61.8m

(FY24 (Restated): $34.1m), up 82%

Reported NPAT Attributable to Shareholders of $101.0m

(FY24 (Restated): $30.3m), up 233%

Outstanding Horticulture result:

Increased apple export volumes and average prices

Higher proportion of Premium varieties

Bostock acquisition fast-tracked long-term strategy of investing in

apple varieties targeted to the Asia & Middle East market

Strong performance by Global Proteins:

Shelby Foods continued its positive performance

Strong results for Meateor Australia, Meateor NZ and Fayman

International

Esro Petfood continued to progress through its start-up phase

Another record Logistics result driven by a significant increase in

volumes

1.Underlying Results exclude some New Zealand International Financial Report Standards (NZ IFRS) non-cash and other adjustments. The Board and management believe that Underlying Results more accurately demonstrate the 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 inclusive of NZ IFRS 16 effects. A reconciliation of Underlying to Reported measures is provided in Appendix A

2.FY24 results have been restated for an increase in apple tree valuations

6Scales Corporation Limited – 2025 Full Year Results
$137.6m

Underlying EBITDA

(2024 (Restated): $91.7m)

165,760 MT

petfood ingredients sold

1

(2024: 152,149 MT)

By the Numbers

31,468

TEU

2

equivalents managed

(2024: 30,068)

$899.9m

revenue

(2024: $584.6m)

14.6%

ROCE

4

(2024 (restated): 14.3%)

15.0 cents

dividends per share paid

(2024: 8.5 cents)

3,681,000

TCEs of own-grown

apples exported

3

(2024: 3,033,000)

$84.1m

net debt

(2024: $12.5m net cash)

1.Includes 100% of petfood ingredient volumes from relevant businesses; i.e. total petfood ingredient volumes controlled directly and indirectly by Global Proteins

2.TEU is a Twenty-foot Equivalent Unit, a unit of cargo capacity to describe container volumes

3.TCE is a Tray Carton Equivalent, a measure of apple and pear weight, defined as 18.6kg packed weight which equates to 18.0kg sale weight. Includes own grown and external grower volumes including those volumes exported by Fern Ridge Fresh

4.Return on Capital Employed, calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as non-current assets plus working capital (excluding cash, overdrafts and borrowings, NZ IFRS 16 lease liabilities, dividends declared, derivative assets /

liabilities and employee loans)

Group
Performance

Inside the Profruit production facility

8Scales Corporation Limited – 2025 Full Year Results
Revenue

$m2025

2024

(Restated)

% chg.

1

2025

2024

(Restated)

% chg.

1

2025

2024

(Restated)

% chg.

1

20252024

% chg.

1

Underlying (excluding NZ IFRS 16)63.534.684%79.253.947%124.479.457%899.9584.654%

NZ IFRS 16 Leases(5.0)(0.5)(5.0)(0.5)8.612.3 - -

NZ IFRS 16 Leases - normalisations

2

3.4 - 3.4 - 4.7 - - -

Underlying (including NZ IFRS 16)61.834.182%77.653.445%137.691.750%899.9584.654%

NZ IFRS & other adjustments:

Impairment of non-current assets and goodwill2.6(1.9)2.6(1.9)3.3(2.5) - -

Other NZ IFRS adjustments

3

36.6(1.8)37.5(1.8)28.9(1.3) - -

Reported

4

101.030.3233%117.749.6137%169.987.993%899.9584.654%

Notes:

1. %'s are calculated based on non-rounded figures, figures may not sum due to rounding

2. Relates to the sale and leaseback of the Whakatu Coolstore

3. Includes a change in the gross liability on put options of nil in 2025 (2024: $2.5m)

4. A full reconciliation between Underlying and Reported earnings is provided in Appendix A

NPAT Attributable to

ShareholdersNPATEBITDA

Group Financial Performance

Group growth strategies are delivering exceptional results

9Scales Corporation Limited – 2025 Full Year Results
Trends in Group Financial Performance

Underlying NPAT

Attributable to Shareholders

Underlying EBITDARevenue

10Scales Corporation Limited – 2025 Full Year Results
Strong results for Shelby,

Meateor Australia, Meateor

NZ and Fayman International

Esro Petfood continued to

progress through its start-up

phase

Outstanding Horticulture result

through increased volumes,

prices and improved variety mix

Result enhanced by the Bostock

orchards acquisition in FY24

Another record Logistics

result driven by a significant

increase in volumes

Divisional Overview

Underlying EBITDA growth across all operating divisions

11Scales Corporation Limited – 2025 Full Year Results
Divisional Performance

% chg.

$m1H252H252025Margin1H24

2H24

(Restated)

2024

(Restated)

Margin

2025 v 2024

(Restated)

Global Proteins29.744.173.915.5%29.625.855.420.7%33%

Horticulture53.212.065.219.1%30.07.737.715.1%73%

Logistics6.11.57.66.4%3.83.16.97.0%10%

Corporate(2.3)(6.7)(9.1)N/A(2.9)(5.3)(8.2)N/A10%

Underlying EBITDA86.750.9137.615.3%60.531.291.715.1%50%

Underlying NPAT56.920.777.68.6%38.415.053.49.2%45%

Underlying NPAT

Attributable to Shareholders48.912.961.86.9%28.55.634.15.9%82%

Notes:

1. Prepared on an Underlying basis. A reconciliation to Reported earnings is provided in Appendix A

2. %'s are calculated based on non-rounded figures, figures may not sum due to rounding

3. NZ IAS 41 Agriculture requires unsold agricultural produce to be measured at fair value less costs to sell meaning the expected profit on unsold fruit is

recognised in the interim result, giving rise to seasonality in profitability as shown above

12Scales Corporation Limited – 2025 Full Year Results
Trends in Divisional Underlying EBITDA Performance

Global ProteinsHorticultureLogistics

13Scales Corporation Limited – 2025 Full Year Results
$m

2025

2024

(Restated)

Net working capital

118.2

34.5

Non-current assets

602.0

441.6

Capital employed

720.2

476.1

Non-current & other liabilities

(179.7)

(102.4)

Net (debt) / cash

(84.1)

12.5

Total equity

456.5

386.3

Financial Position

Overall financial position and net debt reflects investments made

during FY25 in Global Proteins’ joint venture businesses

Financial position allows for further investment opportunities

Net Cash / (Debt) Reconciliation ($m)Summary Financial Position ($m)

Divisional
Performance

Inside Logistics’ Auckland warehouse and chiller facility

15Scales Corporation Limited – 2025 Full Year Results
April 2025

Increased investment in Shelby from 60% to 67.5%

Investment cost of USD24.4m

September 2025

Increased investment in:

Meateor Australia from 50% to 100%

Fayman International from 50% to 100%

ANZ Exports from 42.5% to 85%

A total acquisition price of AUD91.05m

As a result of these investments, the Global Proteins

FY27 Underlying EBITDA target has increased from $70m to $85m

FY25 M&A Summary

Global Proteins – increasing joint venture ownership

Inside the Meateor Australia processing plant

16Scales Corporation Limited – 2025 Full Year Results
$m

2025

2024

% change

Revenue

1

477.6

266.8

79%

Underlying EBITDA

73.9

55.4

33%

Underlying EBIT

69.1

53.6

29%

MT

2025

2024

% change

Petfood Ingredients Volume Sold

165,760

152,149

9%

Edible Proteins Volume Sold

120,673

109,742

10%

1 Excludes revenue from Meateor NZ and Esro Petfood and revenue from Meateor Australia and Fayman until 30 September 2025 (date of additional investment)

2 2022 edible protein volumes are for a 2 month period

3 2023 petfood ingredient volumes exclude those sold at Meateor Australia and Esro Petfood, both operational by 4Q23, due to low volumes

4 2024 and 2025 petfood ingredient volumes include those sold at all Global Proteins’ businesses but excludes inter-company sales (inter-company sales not excluded in

prior years due to immaterial volumes)

Underlying EBITDA ($m)

Volumes Sold (MT 000s)

Financial Performance

KPIs

Global Proteins – Financial Result

Delivering earnings and volume growth

17Scales Corporation Limited – 2025 Full Year Results
Increases in both petfood ingredients and edible proteins sales volumes of 9% and 10% respectively

Realised benefits of increased investments in joint venture businesses:

Shelby had a solid performance, whilst transitioning to a new toll processing facility

Meateor Australia and Meateor NZ performed ahead of forecast with margins up on

expectations

Fayman International had a strong performance, increasing sales to both the South East Asia

and US markets

Esro Petfood continued to progress through its start-up phase, whilst also transitioning to a new

processing facility

Global Proteins – Financial Result (cont.)

Strong result whilst implementing growth strategies

Inside Shelby’s Cherokee plant

18Scales Corporation Limited – 2025 Full Year Results
Slight decrease in revenue / kg due to change in

proportionate business mix

Improved margins across Meateor NZ, Meateor Australia

and Esro Petfood

Global Proteins – Margin Performance

Revenue and margins influenced by changes in business mix

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

19Scales Corporation Limited – 2025 Full Year Results
Global Proteins – Current Initiatives Update

Our growth target is underpinned by 9 key projects across NZ, Australia, the US and Europe

Other ongoing projects

Partnering in the establishment of a fish and poultry petfood

ingredients trading joint venture in the US

Feasibility study for a second European site paused

Options for additional capacity in New Zealand close to finalisation

Completed projects

✓New toll processing plant in the United States increasing volumes

✓New processing facility in the Netherlands performing well and producing

high quality product

✓Blending project in the United States continued to operate successfully

during FY25

✓First new in-plant collection and cooling system in the United States

functioning well

✓Second new in-plant collection and cooling system in the United States

commissioned December 2025, ahead of schedule

✓Meateor Australia traded ahead of forecast and significantly profitable

20Scales Corporation Limited – 2025 Full Year Results
$m2025

2024

(Restated)

% change

Revenue341.8 248.9 37%

Underlying EBITDA65.2 37.7 73%

Underlying EBIT42.1 17.8 136%

Underlying EBITDA ($m)

Financial Performance

Horticulture – Financial Result

Long-term strategy bearing fruit

Increased apple export volumes and average prices, enhanced by the FY24 Bostock acquisition

Grower returns positively impacted by an increased proportion of Premium variety volumes such as Dazzle

TM

and Posy

TM

Profruit delivered another excellent performance underpinned by strong sales prices in our export markets

21Scales Corporation Limited – 2025 Full Year Results
Exp ort Volumes (TCE 0 0 0 s)

2025

2024

% c hange

Mr Apple own-grown volumes

3,681

3,033

21%

External grower volumes*

1,624

1,094

49%

Total volumes exported

5,305

4,126

29%

Profruit Volume (0 0 0 L)

Juice Concentrate Sold

6,537

7,785

-16%

Volumes

Horticulture – Volumes

Substantial increase in volumes

21% increase in Mr Apple total own-grown export volumes, aided by:

Very good growing conditions during the 2025 season

The amalgamation of Bostock orchards, which performed ahead of

expectations

Premium volumes accounted for 74% of total export sale volumes:

Significant increases in Dazzle

TM

and Posy

TM

Our strategically important Asia & Middle East markets continued to grow with

sales comprising 84% of total export fruit sold

Profruit continued to generate strong export sales and pricing:

The volume of juice concentrate sold reflected a more normal year

compared to the record volume in 2024

* External grower volumes comprise external grower volumes handled by Mr Apple and Fern Ridge Fresh

Profruit Sales Volumes (L 000s)

22Scales Corporation Limited – 2025 Full Year Results
Movement in Premium Volumes (TCE 000s)Mr Apple Own Export Volumes (TCE 000s)

Horticulture – Volumes (cont.)

Record volume of Premium apples sold

23Scales Corporation Limited – 2025 Full Year Results
It is currently projected that Premium varieties will account for ~80% of export volumes by 2027 as a result of:

The integration of the Bostock orchards

Mr Apple’s ongoing orchard redevelopment programme

Development of new Premium apple varieties

Mr Apple Own Export Volumes – Actual / Forecast (TCE 000s)

Horticulture – Forecast Volumes

Continued focus on Premium varieties

24Scales Corporation Limited – 2025 Full Year Results
Ap p le Prices b y Variety (N ZD / TCE, FOB)

2025

2024

% c hange

Premium Varieties

52.7

45.6

16%

Traditional Varieties

41.1

37.6

9%

Weighted Average all Apples

49.7

43.4

15%

FX Rates

2025

2024

% change

NZD:USD

0.62

0.63

-2%

NZD:EUR

0.54

0.54

0%

NZD:GBP

0.48

0.48

-1%

NZD:CAD

0.82

0.85

-3%

Apple Prices and Exchange Rates

Horticulture – Pricing

Increases in pricing for both Premium and Traditional varieties

Price increases facilitated by strong demand for Mr Apple’s

Premium apple varieties:

In line with long-term strategy of investing in apple varieties

targeted to the Asia & Middle East markets

Fast-tracked by Bostock acquisition in 2024

Supported by favourable FX rates

Benefited from continued investment in marketing and brand

presence for Mr Apple and Premium varieties such as Dazzle

TM


and Posy

TM

25Scales Corporation Limited – 2025 Full Year Results
Horticulture –Marketing

Dazzle

TM

sponsorshipGuangzhou and Shanghai metro advertisingMini show for Queen launch in Hema stores

Expanding our consumer marketing and retail branded presence in key Asia markets

Relaunched our Tmall store (B2C online marketplace)

Launched Mr Apple channels on RedNote and Douyin (Chinese social

media and e-commerce platforms)

Continued to provide Dazzle

TM

sponsorship of active-type events

Carried out metro advertising in Shanghai, Guangzhou and Taipei

Launched a store locator on Mr Apple’s official WeChat page

26Scales Corporation Limited – 2025 Full Year Results
Underlying EBITDA ($m)

Financial Performance and KPIs

Logistics – Performance and Update

Record Logistics result

Significant increase in volumes:

Continued growth in the dairy sector

Benefited from good growing seasons for both apples and cherries

$m

2025

2024

% change

Revenue

119.3

98.8

21%

Underlying EBITDA

7.6

6.9

10%

Underlying EBIT

6.5

5.9

11%

Volumes

2025

2024

% change

Ocean Freight Volume (TEUs)

31,468

30,068

5%

Airfreight Volume (tonnes)

13,769

7,615

81%

Capital
Management

Inside the Profruit production facility

28Scales Corporation Limited – 2025 Full Year Results
2025

2024

(Restated)

Global Proteins19.8%45.3%

Horticulture12.3%5.4%

Logistics62.6%54.1%

Group14.6%14.3%

Target12.5%12.5%

Maintenance 20252024

Global Proteins6.31.6

Horticulture8.24.4

Logistics0.20.9

Other0.00.0

14.87.0

Margin Improvement 20252024

Horticulture6.87.0

6.87.0

Growth 20252024

Global Proteins - 4.1

- 4.1

Cyclone 20252024

Horticulture - 1.1

- 1.1

Total Capital Expenditure21.619.0

Capital Expenditure ($m)

ROCE and Capital Expenditure

Investing in strategic priorities

Exceeded target Group ROCE:

Movement in Global Proteins’ ROCE due the investment in Meateor Australia,

Fayman International and ANZ Exports

Continued investment into margin improvement projects at Mr Apple:

Ongoing orchard redevelopment into Premium volumes

New high-pressure apple washer at Whakatu packhouse commissioned

Other material capital expenditure related to:

Upgrade to the RSE accommodation at Mr Apple

Capital works at Shelby for its second in-plant collection and cooling system

ROCE

Sustainability
and

Governance

The ex-Bostock Riverslea Dazzle

TM

orchard

30Scales Corporation Limited – 2025 Full Year Results
Sustainability Update

Materiality

Completed a refreshed double materiality assessment (second since 2020) recognising the evolution of our business and the importance of

understanding stakeholder priorities

People

Delivered a Group engagement survey across all New Zealand operating subsidiaries, establishing a baseline to support a planned global rollout in 2027

Continued delivery of Mr Apple’s 5-year people strategy including leadership development, succession planning, HR digitisation and performance &

reward improvements

Progressed health, safety and wellbeing maturity, completing independent assessments and establishing a multi-year improvement roadmap

Environment

Voluntarily completed our third Climate Statement, which will be published in April 2026

Obtained limited assurance over Scope 1 and 2 emissions and progressed analysis of Scope 3 raw material emissions to strengthen data quality

and decision-making

Advanced regenerative planting trials at Mr Apple, now in their third year across two orchards, with early indicators of improved soil health and

fruit quality

Delivered targeted environmental and energy efficiency improvements across Global Proteins operations in the United States, Europe, Australia and

New Zealand

Completed water metering rollout across all orchards and expanded telemetry to improve irrigation efficiency and climate resilience

31Scales Corporation Limited – 2025 Full Year Results
Would like to recognise the significant contribution and support of Alan Isaac who retired in October 2025:

Alan served on the Board for over 11 years, appointed just prior to Scales’ listing

Chair of the Audit & Risk Management Committee and Chair of the Due Diligence Committee as part of the listing

process

Brought broad and deep accounting and financial knowledge as well as well-considered counsel on a wide variety of

issues

Appointed Paul Munro as Independent Non-Executive Director and Chair of Scales’ Audit & Risk Management Committee,

effective October 2025:

Paul has extensive governance experience from a wide range of public and private entities

Appointed new CFO February 2026:

Steve Kennelly stepping down as CFO, maintaining Company Secretary role

Ben Washington appointed CFO, commencing June 2026

Governance

Refreshing our Director and Senior Management Team

Alan Isaac

Paul Munro

02.
FY26

Outlook

The Esro Petfood plant

33Scales Corporation Limited – 2025 Full Year Results
FY26 Outlook

Group

Directors confirm the previously advised Guidance range of Underlying

Net Profit after Tax Attributable to Shareholders of between $50.0 million

and $55.0 million, implying:

An Underlying Net Profit after Tax range of between $67.0 million

and $73.0 million

An Underlying EBITDA range of between $129.0 million and

$136.0 million

Geopolitical uncertainty is expected to continue through 2026

In providing this Guidance, the Directors note the comments (right)

regarding each of the divisions

Global Proteins

The division is expected to perform strongly and continue to realise

the benefits of its increased investments

Horticulture

A crop of ~3.5 million TCEs is forecast for Mr Apple, with picking and

packing commenced for the season

Pricing expected to be positive, impacted by a number of factors

including favourable foreign exchange rates

Profruit continues to experience positive demand

Logistics

Logistics is expected to contribute positively

03.
Appendices

Inside Logistics’ Auckland warehouse and chiller facility

Appendix A
Sunrise over the ex-Bostock Riverslea Dazzle

TM

orchard

36Scales Corporation Limited – 2025 Full Year Results
GroupGlobal ProteinsHorticultureLogisticsCorporate and eliminations

$m2025

2024

(Restated)

202520242025

2024

(Restated)

2025202420252024

Underlying / Reported Revenue899.9584.6477.6266.8341.8248.9119.398.8(38.7)(29.8)

EBITDA Reconciliation

Underlying EBITDA (excluding NZ IFRS 16)124.479.473.555.253.726.86.45.7(9.2)(8.4)

NZ IFRS 16 Leases8.612.30.30.16.910.91.21.20.20.2

NZ IFRS 16 Leases - normalisation4.7 - - - 4.7 - - - - -

Underlying EBITDA (including NZ IFRS 16)137.691.773.955.465.237.77.66.9(9.1)(8.2)

Other adjustments:

(Impairment) of non-current assets3.3(2.7) - - 3.3(2.7) - - - -

Cyclone Gabrielle - net costs and proceeds - 0.2 - - - 0.2 - - - -

Gain on sale of Blyth & Te Papa orchards(0.1)4.9 - - (0.1)4.9 - - - -

Equity settled employee benefits(1.2)(0.7) - - - - - - (1.2)(0.7)

FX loss3.3 - - - 3.3 - - - - -

Fayman acquisition and equity accounting22.0(1.6)22.0(1.6) - - - - - -

Profruit acquisition and equity accounting(0.5)(0.8) - - (0.5)(0.8) - - - -

Equity accounting losses not recognised2.91.82.91.8 - - - - - -

Change in fair value gain on apple inventory4.6(1.1) - - 4.6(1.1) - - - -

Change in gross liability for non-controlling interests interests and joint venture options - (2.5) - (2.5) - - - - - -

Transaction costs(2.1)(1.2) - - (0.5)(0.5) - - (1.6)(0.8)

Reported EBITDA169.987.998.853.075.337.77.66.9(11.8)(9.7)

EBIT Reconciliation

Underlying EBIT (excluding NZ IFRS 16)106.065.969.053.640.215.36.15.4(9.3)(8.4)

NZ IFRS 16 Leases(2.2)3.10.10.0(2.8)2.50.40.40.00.0

NZ IFRS 16 Leases - renewal reassessment4.7 - - - 4.7 - - - - -

Underlying EBIT (including NZ IFRS 16)108.468.969.153.642.117.86.55.9(9.2)(8.4)

Other adjustments:

(Impairment) of non-current assets3.3(2.7) - - 3.3(2.7) - - - -

Impairment of goodwill - - - - - - - - - -

Cyclone Gabrielle - net costs and proceeds - 0.2 - - - 0.2 - - - -

Gain on sale of Blyth & Te Papa orchards(0.1)4.9 - - (0.1)4.9 - - - -

Equity settled employee benefits(1.2)(0.7) - - - - - - (1.2)(0.7)

FX loss3.3 - - - 3.3 - - - - -

Fayman acquisition and equity accounting23.7(1.6)23.7(1.6) - - - - - -

Profruit acquisition and equity accounting(0.5)(0.4) - - (0.5)(0.4) - - - -

Equity accounting losses not recognised2.91.82.91.8 - - - - - -

Change in fair value gain on apple inventory4.6(1.1) - - 4.6(1.1) - - - -

Change in gross liability for non-controlling interests interests and joint venture options - (2.5) - (2.5) - - - - - -

Transaction costs(2.1)(1.2) - - (0.5)(0.5) - - (1.6)(0.8)

Reported EBIT142.465.595.751.352.218.36.55.9(12.0)(9.9)

NZ IFRS Reconciliation

37Scales Corporation Limited – 2025 Full Year Results
GroupGlobal ProteinsHorticultureLogisticsCorporate and eliminations

$m2025

2024

(Restated)

202520242025

2024

(Restated)

2025202420252024

NPAT Reconciliation

Underlying NPAT (excluding NZ IFRS 16)79.253.954.646.727.811.04.43.9(7.6)(7.7)

NZ IFRS 16 Leases, net of tax(5.0)(0.5)(0.1)0.0(4.8)(0.4)(0.1)(0.2)(0.0)(0.0)

NZ IFRS 16 Leases - renewal reassessment, net of tax3.4 - - - 3.4 - - - - -

Underlying NPAT (including NZ IFRS 16)77.653.454.646.726.410.74.33.7(7.6)(7.7)

Other adjustments:

(Impairment) of non-current assets3.3(2.7) - - 3.3(2.7) - - - -

Cyclone Gabrielle - net costs and proceeds - 0.2 - - - 0.2 - - - -

Gain on sale of Blyth & Te Papa orchards(0.1)4.9 - - (0.1)4.9 - - - -

Equity settled employee benefits(1.1)(0.7) - - - - - - (1.1)(0.7)

FX loss3.3 - - - 3.3 - - - - -

Fayman acquisition and equity accounting31.5(1.1)31.5(1.1) - - - - - -

Profruit acquisition and equity accounting(0.4)(0.2) - - (0.4)(0.2) - - - -

Equity accounting losses not recognised2.91.82.91.8 - - - - - -

Change in fair value gain on apple inventory4.6(1.1) - - 4.6(1.1) - - - -

Change in gross liability for non-controlling interests interests and joint venture options - (2.5) - (2.5) - - - - - -

Transaction costs(2.1)(1.2) - - (0.5)(0.5) - - (1.6)(0.8)

Tax deduction change for buildings - (2.1) - - - (2.1) - - - -

Tax effect of other NZ IFRS adjustments(1.9)1.1(1.0)(0.5)(0.9)1.6 - - - -

Reported NPAT117.749.688.144.335.710.94.33.7(10.3)(9.2)

NPAT Attributable to Shareholders Reconciliation

Underlying NPATAS (excluding NZ IFRS 16)63.534.638.927.427.811.04.43.9(7.6)(7.7)

NZ IFRS 16 Leases, net of tax(5.0)(0.5)(0.1)0.0(4.8)(0.4)(0.1)(0.2)(0.0)(0.0)

NZ IFRS 16 Leases - renewal reassessment, net of tax3.4 - - - 3.4 - - - - -

Underlying NPATAS (including NZ IFRS 16)61.834.138.827.426.410.74.33.7(7.6)(7.7)

Other adjustments:

(Impairment) of non-current assets3.3(2.7) - - 3.3(2.7) - - - -

Cyclone Gabrielle - net costs and proceeds - 0.2 - - - 0.2 - - - -

Gain on sale of Blyth & Te Papa orchards(0.1)4.9 - - (0.1)4.9 - - - -

Equity settled employee benefits(1.1)(0.7) - - - - - - (1.1)(0.7)

FX loss3.3 - - - 3.3 - - - - -

Fayman acquisition and equity accounting30.6(1.1)30.6(1.1) - - - - - -

Profruit acquisition and equity accounting(0.4)(0.2) - - (0.4)(0.2) - - - -

Equity accounting losses not recognised2.91.82.91.8 - - - - - -

Change in fair value gain on apple inventory4.6(1.1) - - 4.6(1.1) - - - -

Change in gross liability for non-controlling interests interests and joint venture options - (2.5) - (2.5) - - - - - -

Transaction costs(2.1)(1.2) - - (0.5)(0.5) - - (1.6)(0.8)

Tax deduction change for buildings(2.1) - - - (2.1) - - - -

Tax effect of other NZ IFRS adjustments(1.9)1.1(1.0)(0.5)(0.9)1.6 - - - -

Reported NPAT Attributable to Shareholders101.030.371.425.035.710.94.33.7(10.3)(9.2)

NZ IFRS Reconciliation (cont.)

Appendix B
Production at Meateor Australia

39Scales Corporation Limited – 2025 Full Year Results
Disclaimer

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 full 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 deducting) the after-tax effect of certain non-cash NZ IFRS and other adjustments

A full reconciliation of Underlying to reported measures is provided in our Annual Report.

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.

---

Scales Corporation Limited
consolidated financial statements

for the year ended 31 December 2025

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 consolidated financial statements11

Independent auditor's report72

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

Paul Munro (Appointed 14 October 2025)Bankers

Alan Isaac (Retired 14 October 2025)ANZ Bank New Zealand Limited

Level 3

Audit and Risk Management CommitteeANZ Centre

Paul Munro (Chair) (Appointed 14 October 2025)267 High Street

Tony BattertonChristchurch 8011

Nick Harris

Alan Isaac (Chair) (Retired 14 October 2025)Coöperatieve 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

Level 34

Postal AddressPwC Tower

PO Box 159015 Customs Street West

Christchurch 8140Auckland 1010

New Zealand

Corporate Advisor

TelephoneMaher & Associates

+64 3 379 772017 Albert Street

Auckland 1010

Website

www.scalescorporation.co.nzShare Registry

Computershare Investor Services Limited

Level 2

159 Hurstmere Road

Takapuna

Auckland 0622

3

Scales Corporation Limited
Consolidated statement of comprehensive income for the year ended 31 December 2025

20252024

$000's $000's

Note(Restated)*

RevenueB1899,949584,627

Cost of salesB2(700,212)(439,602)

199,737145,025

Administration and operating expensesB2(81,356)(64,234)

Impairment of property, plant and equipmentC13,118(2,949)

Share of profit of entities accounted for using the equity methodC38,2196,402

Other incomeB340,5967,810

Other lossesB3(452)(4,178)

EBITDA169,86287,876

AmortisationC7(1,072)(744)

DepreciationC1(15,611)(12,330)

Depreciation of right-of-use assetG2(10,799)(9,285)

EBIT142,38065,517

Finance revenue3,0363,465

Finance costB4(5,383)(4,819)

Finance cost of lease liabilityG2(4,740)(3,774)

PROFIT BEFORE INCOME TAX EXPENSE135,29360,389

Income tax expenseB5

(17,595) (10,741)

PROFIT FOR THE YEAR117,69849,648

Profit for the year is attributable to:

Equity holders of the Company100,98830,337

Non-controlling interests16,71019,311

117,69849,648

EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY:

Basic earnings per share (cents)D570.721.3

Diluted earnings per share (cents)D570.221.3

The notes to the financial statements on pages 11 to 71 form part of and should be read in conjunction with this statement.

* The restatements to comparative period are explained in Section H.

4

Scales Corporation Limited
Consolidated statement of comprehensive income for the year ended 31 December 2025 (continued)

20252024

$000's $000's

Note(Restated)*

OTHER COMPREHENSIVE INCOME

Items that may be reclassified subsequently to profit or loss:

Gain (loss) on cash flow hedges17,176

(41,941)

Income tax relating to cash flow hedges(4,855)

11,743

Share of other comprehensive income (loss) of joint venturesC32,661

(4,473)

Income tax relating to share of other comprehensive income of joint venturesC3(242)

452

Foreign exchange gain on translating foreign operations1,584

3,630

16,324(30,589)

Items that will not be reclassified to profit or loss:

Revaluation of land and buildings(2,664)

(110)

Income tax relating to buildings782

(1,736)

Revaluation of apple trees(2,718)

14,915

Income tax relating to apple trees761

(4,176)

Deferred tax effect on sale of buildings186

821

Remeasurement of net defined benefit liability406

487

Income tax relating to remeasurement of net defined benefit liability(67)

(74)

(3,314)10,127

OTHER COMPREHENSIVE INCOME (LOSS) FOR THE YEAR13,010(20,462)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR130,70829,186

Total comprehensive income for the year attributable to:

Equity holders of the Company113,8369,680

Non-controlling interests16,87219,506

130,70829,186

The notes to the financial statements on pages 11 to 71 form part of and should be read in conjunction with this statement.

* The restatements to comparative period are explained in Section H.

5

Scales Corporation Limited
Consolidated statement of changes in equity for the year ended 31 December 2025

Share

capital

ReservesRetained

earnings

Attributable

to owners of

the

Company

Non-

controlling

interests

Total

Note$000's $000's $000's $000's $000's $000's

Balance at 1 January 2024

103,445 99,435 170,472 373,35211,596

384,948

Correction of error adjustmentH

3,887(401)3,486

3,486

Balance at 1 January 2024 (Restated)*

103,445 103,322 170,071 376,83811,596

388,434

Profit for the year (Restated)*--30,33730,33719,31149,648

Other comprehensive loss for the year (Restated)*-(20,657)-(20,657)195(20,462)

Total comprehensive income for the year (Restated)*-(20,657)30,3379,68019,50629,186

Reclassification of revaluation reserveD2

- (16,182) 16,182--

-

Recognition of share-based paymentsD2-

710

-

710-

710

Shares soldD1

256--256-

256

Shares fully vestedD1, D2

2,070(578)(221)1,271-

1,271

DividendsD3

--(16,374) (16,374) (17,175)

(33,549)

Balance at 31 December 2024 (Restated)*105,77166,615199,995372,38113,927386,308

Profit for the year--100,988100,98816,710117,698

Other comprehensive income for the year-12,848-12,84816213,010

Total comprehensive income for the year-12,848100,988113,83616,872130,708

Reclassification of revaluation reserveD2

- (8,278)8,278--

-

Recognition of share-based paymentsD2

-1,169- 1,169-

1,169

Shares issuedD1

5,996-- 5,996-

5,996

Shares fully vestedD1, D2

1,663(679)(127)857-

857

Income tax relating to share-based paymentsD1, D2

-1,398- 1,398-

1,398

DividendsD3

--(29,079) (29,079) (14,846)

(43,925)

Movements of non-controlling interest

--(22,915) (22,915) (3,080)

(25,995)

Balance at 31 December 2025113,43073,073257,140443,64312,873456,516

The notes to the financial statements on pages 11 to 71 form part of and should be read in conjunction with this statement.

* The restatements to comparative periods are explained in Section H.

6

Scales Corporation Limited
Consolidated statement of financial position as at 31 December 2025

202520242023

$000's$000's$000's

Note(Restated)*(Restated)*

EQUITY

Share capitalD1

113,430105,771103,445

ReservesD2

73,07366,615103,322

Retained earnings

257,140199,995170,071

Equity attributable to Scales Corporation Limited shareholders443,643372,381376,838

Equity attributable to non-controlling interestsF212,87313,927

11,596

TOTAL EQUITY456,516386,308388,434

CURRENT ASSETS

Cash and bank balances

64,67253,75377,638

Trade and other receivablesE1

71,55738,02534,029

Current tax assets

7015,3633,938

Other financial assetsE2

4,6862,2305,989

Unharvested agricultural produceC2

30,60226,64824,222

InventoriesC5

119,61824,96229,543

Prepayments

6,0153,8764,337

297,851154,857179,696

Assets held for sale

-19,100-

TOTAL CURRENT ASSETS297,851173,957179,696

NON-CURRENT ASSETS

Property, plant and equipmentC1

275,331245,344226,060

Investments accounted for using the equity methodC3

22,43957,21263,902

GoodwillC4

168,82040,63036,972

Defined benefit plan net asset

1,06359760

Other financial assetsE233,26337,188

29,077

SoftwareC7

1,2301,0551,160

Right-of-use assetG2

99,85659,59749,572

TOTAL NON-CURRENT ASSETS602,002441,623406,803

TOTAL ASSETS899,853615,580586,499

CURRENT LIABILITIES

Trade and other payablesE3

77,03529,85226,446

Dividend declaredD3

17,99710,3326,041

BorrowingsE4

63,759--

Purchase price payableF3

8,140--

Current tax liabilities

6,986397616

Other financial liabilitiesE56,81241,918

18,524

Lease liabilityG2

15,97113,46410,963

TOTAL CURRENT LIABILITIES196,70095,96362,590

NON-CURRENT LIABILITIES

BorrowingsE4

84,98241,25965,647

Purchase price payableF3

28,574--

Deferred tax liabilitiesB5

20,97020,44118,459

Other financial liabilitiesE514,44918,688

6,699

Lease liabilityG2

97,66252,92144,670

TOTAL NON-CURRENT LIABILITIES246,637133,309135,475

TOTAL LIABILITIES443,337229,272198,065

NET ASSETS456,516386,308388,434

The notes to the financial statements on pages 11 to 71 form part of and should be read in conjunction with this statement.

* The restatements to comparative periods are explained in Section H.

7

Scales Corporation Limited
Consolidated statement of cash flows for the year ended 31 December 2025

20252024

Note$000's$000's

CASH FLOWS FROM OPERATING ACTIVITIES

Cash was provided from:

Receipts from customers886,728590,424

Government grants received-25

Dividends and distributions received2,7331,546

Interest received2,6023,000

892,063594,995

Cash was disbursed to:

Payments to suppliers and employees(776,062)(481,705)

Interest paid(10,123)(8,593)

Income tax paid(10,113)(7,140)

(796,298)(497,438)

NET CASH PROVIDED BY OPERATING ACTIVITIES95,76597,557

CASH FLOWS FROM INVESTING ACTIVITIES

Cash was provided from:

Advances repaid544261

Sale of property, plant and equipment and software24,18334,000

24,72734,261

Cash was applied to:

Purchase of property, plant and equipmentC1(20,903)(54,433)

Purchase of softwareC7(1,247)(507)

Purchase of financial instruments(150)-

Acquisition of non-controlling interestF2(41,434)-

Acquisition of subsidiary, net of cash acquiredF3(38,120)(11,080)

Advances to joint ventures(4,201)(17,338)

(106,055)(83,358)

NET CASH USED IN INVESTING ACTIVITIES(81,328)(49,097)

CASH FLOWS FROM FINANCING ACTIVITIES

Cash was provided from:

Treasury stock sold-256

Drawdowns of seasonal facility borrowingsE434,00025,500

Net drawdowns of trade finance facility borrowingsE413,548-

Drawdowns of term facility borrowingsE440,73256,000

88,28081,756

Cash was applied to:

Dividends paid

D3

(21,414)(12,083)

Dividends paid to non-controlling interests

F2

(14,846)(17,175)

Repayment of related party loanF3(13,234)-

Repayments of lease liabilities

G2

(8,464)(9,075)

Repayments of seasonal facility borrowingsE4(34,000)(28,937)

Repayments of term facility borrowingsE4(715)(87,087)

(92,673)(154,357)

NET CASH USED IN FINANCING ACTIVITIES(4,393)(72,601)

The notes to the financial statements on pages 11 to 71 form part of and should be read in conjunction with this statement.

8

Scales Corporation Limited
Consolidated statement of cash flows for the year ended 31 December 2025 (continued)

20252024

$000's$000's

NET INCREASE (DECREASE) IN CASH10,044(24,141)

Net foreign exchange difference875256

Cash and cash equivalents at the beginning of the year53,75377,638

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR64,67253,753

Represented by:

Cash and bank balances

64,672

53,753

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR64,67253,753

NET CASH GENERATED BY OPERATING ACTIVITIES

Reconciliation of profit for the year to net cash generated by operating activities:

Profit for the year117,69849,648

Non-cash items:

Depreciation (including on right-of-use asset)26,41021,615

Gain on lease modification(59)(79)

Gain on rights transferred(187)(3,113)

Impairment on revaluation (impairment reversal)(3,118)2,949

Amortisation1,072744

Share of equity accounted results(8,219)(6,402)

Gain on fair value of equity instrument(40,262)(3,367)

Hedging instruments(4,335)4,790

Loss (gain) on disposal of property, plant and equipment174(1,225)

Share-based payments1,169710

Change in value of call and put options-2,515

Deferred tax(3,413)6,304

Interest capitalised into loans(434)(465)

Fair value loss on interest-free related party loans, net of interest income2781,663

Foreign exchange on related party loans(575)(682)

Operating cash receipts not included in profit for the year:

Dividends received from equity accounted entities2,6451,545

Changes in net assets and liabilities:

Trade and other receivables(8,898)1,009

Unharvested agricultural produce(3,954)(2,426)

Inventories6,90124,175

Prepayments(94)884

Trade and other payables2,071(532)

Current tax assets and liabilities10,895(2,703)

NET CASH PROVIDED BY OPERATING ACTIVITIES95,76597,557

The notes to the financial statements on pages 11 to 71 form part of and should be read in conjunction with this statement.

9

Scales Corporation Limited
Consolidated statement of cash flows for the year ended 31 December 2025 (continued)

Statement of cash flows

For the purpose of the statement of cash flows, cash and cash equivalents include cash and bank balances.

The following terms are used in the statement of cash flows:

Operating activitiesare the principal revenue producing activities of the Group and other activities that are not

investing or financing activities.

Investing activitiesare the acquisition and disposal of long-term assets and other investments not included in cash

equivalents.

Financing activitiesare activities that result in changes in the size and composition of the contributed equity and

borrowings of the Group.

For and on behalf of the Board of Directors who authorised the issue of the financial statements on 24 February 2026.

Mike Petersen, ChairAndy Borland, Managing Director

The notes to the financial statements on pages 11 to 71 form part of and should be read in conjunction with this statement.

10

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

ABOUT THIS REPORT

Notes to the financial statements

The notes to the financial statements include information which is considered relevant and material to assist the reader

in understanding the financial performance and financial position of the Scales Corporation Limited Group ("Scales" or the

"Group"). Information is considered relevant and material if:

• the amount is significant because of its size and nature;

• it is important for understanding the results of Scales;

• it helps to explain changes in Scales’ business; or

• it relates to an aspect of Scales’ operations that is important to future performance.

Reporting entity

Scales Corporation Limited (the "Company") 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. The Group consists

of Scales Corporation Limited, its subsidiaries and joint ventures. The principal activities of the Group are to manufacture and

trade food ingredients, grow apples, operate processing facilities, export products, provide logistics services, and provide

insurance services to companies within the Group.

Basis of preparation

The financial statements have been prepared:

• in accordance with Generally Accepted Accounting Practice (GAAP), IFRS Accounting Standards (IFRS),

the New Zealand equivalents to IFRS Accounting Standards (NZ IFRS) and other applicable financial reporting

standards, as appropriate for a Tier 1 for-profit entity;

• in accordance with the requirements of the Financial Markets Conduct Act 2013;

• in accordance with accounting policies that are consistent with those applied in the previous year;

• on the basis of historical cost, except for certain assets and financial instruments that are measured at fair values; and

• in New Zealand dollars with all values rounded to the nearest thousand dollars.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between

market participants at the measurement date, regardless of whether that price is directly observable or estimated using

another valuation technique. In estimating the fair value of an asset or liability, the Group takes into account the

characteristics of the asset or liability if market participants would take those characteristics into account when pricing

the asset or liability at the measurement date.

For financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree

to which the inputs to the fair value measurements are observable. The levels are described as:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access

at the measurement date;

• Level 2 inputs are inputs, other than quoted prices within Level 1, that are observable for the asset or liability, either directly

or indirectly; and

• Level 3 inputs are unobservable inputs for the asset or liability.

11

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

ABOUT THIS REPORT (CONTINUED)

Key judgements and estimates

In the process of applying the Group’s accounting policies and the application of financial reporting standards, Scales has

made a number of judgements and estimates. The estimates and underlying assumptions are based on historical experience

and various other factors that are considered to be appropriate under the circumstances. Actual results may differ from these

estimates.

Judgements and estimates which are considered material to understanding the performance of Scales are explained in the

following notes:

• Apple trees in note C1;

• Unharvested agricultural produce in note C2;

• Assessment of Group goodwill for impairment in note C4;

• Fair value of assets acquired in the Australian entities in note F3.

Basis of consolidation

The Group financial statements incorporate the financial statements of the Company and its subsidiaries (being entities

controlled by Scales Corporation Limited), and the equity accounted result, assets and liabilities of the joint ventures.

The financial statements of members of the Group are prepared for the same reporting period as the parent company, using

consistent accounting policies.

In preparing the Group financial statements, all material intra-group transactions, balances, income, expenses and cash flows

have been eliminated. Subsidiaries are consolidated from the date on which control is obtained to the date on which control

is lost.

Other accounting policies

Other accounting policies that are relevant to an understanding of the financial statements are provided throughout the notes

to the financial statements.

12

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

ABOUT THIS REPORT (CONTINUED)

Adoption of new and revised standards and interpretations; standards and Interpretations issued but not yet effective

All mandatory amendments and interpretations have been adopted in the current year. None had a material impact on these

financial statements.

NZ IFRS 18Presentation and Disclosure in Financial Statements has been issued and is effective for the financial reporting

periods starting on 1 January 2027, with an early adoption permitted.

NZ IFRS 18 replaces NZ IAS 1Presentation of Financial Statements, carrying forward many of the requirements in NZ IAS 1

unchanged and complementing them with new requirements. In addition, some NZ IAS 1 paragraphs have been moved to

NZ IAS 8Accounting Policies, Changes in Accounting Estimates and Errorsand NZ IFRS 7Financial Instruments: Disclosures.

Furthermore, there were minor amendments to NZ IAS 7Statement of Cash Flowsand NZ IAS 33Earnings Per Share.

NZ IFRS 18 introduces new requirements to:

- present specified categories and defined subtotals in the statement of profit or loss

- provide disclosures on management-defined performance measures (MPMs) in the notes to the financial statements; and

- improve aggregation and disaggregation.

The amendments to NZ IAS 7 and NZ IAS 33, as well as the revised NZ IAS 8 and NZ IFRS 7, become effective when an entity applies

NZ IFRS 18. NZ IFRS 18 requires retrospective application with specific transition provisions.

As a presentation and disclosure standard, NZ IFRS 18 is expected to change the manner in which information is presented in Group

financial statements, with the recognition and measurement of items in the financial statements not impacted.

The Group has reviewed all other standards, interpretations and amendments to existing standards issued but not yet effective and

does not expect these standards to have a material effect on the financial statements of the Group when adopted.

13

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

A. SEGMENT INFORMATION

This section explains the financial performance of the operating segments of Scales, providing additional information

about individual segments.

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision

maker, being the Managing Director. The Managing Director monitors the operating performance of each segment for the

purpose of making decisions on resource allocation and strategic direction. Inter-segment pricing is determined on an arm’s

length basis. 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.

The Group comprises the following operating segments:

• Global Proteins: processing and marketing of proteins such as pet food 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 , Esro Petfood B.V. and Shelby SPS LLC.

• Horticulture: orchards, fruit packing, juice concentrate processing and marketing.

Mr Apple New Zealand Limited, New Zealand Apple Limited, Longview Group Holdings Limited, Profruit (2006) Limited, and

Fern Ridge Produce 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.

14

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

A. SEGMENT INFORMATION (CONTINUED)

Global

Proteins

Horti-

cultureLogisticsOther

Elimina-

tionsTotal

$000's $000's $000's $000's $000's $000's

2025

Total segment revenue477,587341,831119,2782,878(41,625)899,949

Inter-segment revenue--(37,986)(3,639)41,625-

Revenue from external customers477,587341,83181,292(761)-899,949

Loss on sale of non-current assets(32)(155)13--(174)

Insurance proceeds------

Share of profit of entities accounted for8,219----8,219

using the equity method

Impairment of property, plant and equipment(83)3,201---3,118

Goodwill impairment------

Gain on fair value of equity investment40,262----40,262

Gain on lease modification-59---59

EBITDA98,83175,2757,597(11,841)-169,862

Amortisation expense-(1,001)(58)(13)-(1,072)

Depreciation expense(2,839)(12,484)(262)(26)-(15,611)

Depreciation of right-of-use asset(266)(9,621)(791)(121)-(10,799)

EBIT95,72652,1696,486(12,001)-142,380

Finance revenue468108432,417-3,036

Finance costs(1,298)(15)21(4,091)-(5,383)

Finance cost of lease liability(151)(3,933)(597)(59)-(4,740)

Income tax expense(6,667)(12,666)(1,689)3,427-(17,595)

Segment profit (loss) after income tax88,07835,6634,264(10,307)-117,698

Segment assets347,390465,64419,87066,949-899,853

Segment liabilities175,817159,74517,62590,150-443,337

Segment carrying value of investment22,439----22,439

accounted for using the equity method

Segment acquisition of property, plant and6,66615,24521326-22,150

equipment and software

Segment acquisition of right-of-use assets10,65439,5111,27632-51,473

15

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

A. SEGMENT INFORMATION (CONTINUED)

Global

Proteins

Horti-

cultureLogisticsOther

Elimina-

tionsTotal

$000's $000's $000's $000's $000's $000's

2024 (Restated)*

Total segment revenue266,791248,87598,7973,789(33,625)584,627

Inter-segment revenue--(30,223)(3,402)33,625-

Revenue from external customers266,791248,87568,574387-584,627

Gain on sale of non-current assets-1,225---1,225

Insurance proceeds------

Share of profit of entities accounted for6,039363---6,402

using the equity method

Impairment of property, plant and equipment-(2,949)---(2,949)

Goodwill impairment------

Gain on fair value of equity investment-3,367--

Gain on lease modification24478--79

EBITDA52,98737,7156,884(9,710)-87,876

Amortisation expense-(696)(34)(14)-(744)

Depreciation expense(1,652)(10,392)(259)(27)-(12,330)

Depreciation of right-of-use asset(69)(8,366)(731)(119)-(9,285)

EBIT51,26618,2615,860(9,870)-65,517

Finance revenue661224612,519-3,465

Finance costs(18)45(76)(4,770)-(4,819)

Finance cost of lease liability(17)(3,052)(640)(65)-(3,774)

Income tax expense(7,619)(4,627)(1,480)2,985-(10,741)

Segment profit (loss) after income tax44,27310,8513,725(9,201)-49,648

Segment assets166,557371,82924,11453,080-615,580

Segment liabilities37,559131,15115,61244,950-229,272

Segment carrying value of investment57,212----57,212

accounted for using the equity method

Segment acquisition of property, plant and5,67248,31193819-54,940

equipment and software

Segment acquisition of right of use assets28316,1643,63837-20,122

* The restatements to comparative period are explained in Section H.

16

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

A. SEGMENT INFORMATION (CONTINUED)

Non-current assets other than financial instruments by geographical location

New ZealandAustraliaUSATotal

20252024202520242025202420252024

(Restated)*(Restated)*

$000's $000's $000's $000's $000's $000's $000's $000's

Property, plant and equipment228,644226,64925,1892121,49818,674275,331245,344

Investments accounted for22,41220,078(0)37,13427-22,43957,212

using the equity method

Goodwill89,5097,67647,206-32,10532,954168,82040,630

Software1,2281,0552---1,2301,055

Right-of-use asset89,21459,38210,504-13821599,85659,597

* The restatements to comparative period are explained in Section H.

17

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

B. FINANCIAL PERFORMANCE

This section explains the financial performance of Scales, providing additional information about individual items in the

statement of comprehensive income.

B1. REVENUE

20252024

$000's $000's

By nature:

Revenue from the sale of goods

793,370 496,741

Revenue from the rendering of services

112,745 90,319

Fees and commission

71024

Net foreign exchange (loss) gain

(11,678) (7,228)

Rental revenue

4,802 4,771

899,949 584,627

By market:

New Zealand

123,377 79,729

Asia

364,653 178,786

Europe

30,226 36,144

North America

361,727 284,731

Other

19,966 5,237

899,949 584,627

By segment and type:

Horticulture - sale of agricultural produce317,618233,827

Horticulture - agricultural produce related services19,00310,277

Horticulture - other5,2104,771

Global Proteins - sale of pet food ingredients and edible proteins465,652255,805

Global Proteins - other11,93510,986

Logistics services81,29268,574

Other(761)387

899,949 584,627

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on

behalf of third parties. The Group recognises revenue when it transfers control of a product or service to a customer. Rental

revenue is recognised on a straight-line basis over the period of occupation.

Sale of agricultural produce and fruit juice

The Group sells apples to more than 160 customers in 40 countries and fruit juice to more than 60 customers in 4 countries.

Apple sales-related quality claim provisions are recorded in accordance with NZ IAS 37Provisions, Contingent Liabilities and

Contingent Assets. Revenue is recognised when control of the goods has transferred, being when the goods have been

shipped to the customer ("outright sales") or when the goods have been sold by the customer ("consignment sales"). In

addition, the apple season finishes before the end of the calendar year, with performance obligations under both sales types

satisfied for all sales made during that season.

18

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

B1. REVENUE (CONTINUED)

Sale of agricultural produce and fruit juice (continued)

Outright sales

Following shipment, revenue is recognised when the customer obtains control as it has full discretion over the manner of

distribution and price to sell the goods, has the primary responsibility when onselling the goods and bears the risks of loss

in relation to the goods. A receivable is recognised by the Group when it loses control, which is when the goods are

delivered on the ship at the port of shipment as this represents the point in time at which the right to consideration

becomes unconditional, as only the passage of time is required before the payment is due. Terms of payment are up to 45

days on arrival.

Consignment sales

Revenue is recognised by the Group when it loses control, which is when the goods are confirmed to be on-sold to the

ultimate customer as this represents the point in time at which the right to consideration becomes unconditional, as only

the passage of time is required before the payment is due. Terms of payment are immediate upon on-sale.

Sale of petfood ingredients and edible proteins

The Group sells petfood ingredients to a number of international and domestic customers. Revenue is recognised when

control of the goods has transferred, being when the goods have been delivered to the customer ("delivered to destination

sales") or when shipped to the customer ("outright sales"). Terms of payment are up to 120 days.

Delivered to destination sales

Following delivery, revenue is recognised when the customer obtains control as it has full discretion over the manner of

distribution and price to sell the goods, has the primary responsibility when onselling the goods and bears the risks of loss

in relation to the goods. A receivable is recognised by the Group when it loses control, which is when the goods are delivered

to the destination named by the customer as this represents the point in time at which the right to consideration becomes

unconditional, as only the passage of time is required before the payment is due.

Outright sales

Same as above under "Sale of agricultural produce - outright sales".

Agricultural produce related services

The Group provides a number of agricultural produce related services to external apple growers, including packaging, cartage,

export documentation and export services. Each of those services is considered to be a distinct service as it is both regularly

supplied by the Group to customers on a stand-alone basis and is available for customers from other providers in the market.

A receivable is recognised by the Group when the service performance has been completed, and the performance obligation is

satisfied as this represents the point in time at which the right to consideration becomes unconditional, as only the passage

of time is required before the payment is due. Terms of payment are up to 45 days.

Logistics services

The Group provides marine and air logistics services to domestic customers. Revenue is recognised by the Group at a point in

time, which is when the shipment is organised and the goods are on the ship or the aeroplane. The performance obligation is

satisfied at the point in time at which the right to consideration becomes unconditional, as only the passage of time is

required before the payment is due. Terms of payment are up to 60 days.

19

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

B2. COST OF SALES, ADMINISTRATION AND OPERATING EXPENSES

20252024

$000's $000's

Auditor's remuneration

Deloitte Limited (New Zealand):

Audit and review of the financial statements:

Audit of the annual financial statements

454359

Other services:

Audit or review related services:

Audit of the charging group financial statements

-20

Audit of solvency certificate for Selacs Insurance Limited

109

Other assurance services and other AUP engagements

Greenhouse gas emission assurance engagement

4545

Other services:

Greenhouse gas assurance engagement readiness

-45

Non-assurance services:

Taxation compliance

10-

Sheehan & Company CPA, PC (United States):

Audit and review of the financial statements:

Group reporting audit

155144

Review of subsidiary financial statements

4540

Lowe Lippmann (Australia):

Audit and review of the financial statements:

Group reporting audit

-33

Prior year accrual timing differences:

(5)-

Bad debts recovered

(587)(681)

Change in fair value adjustment to unharvested agricultural produce

(4,579) 1,139

Change in inventories

15,918 23,582

Direct expenses

128,234 97,471

Directors' fees

678704

Donations

1212

Electricity

4,413 3,667

Employee benefits expense:

Post employment benefits - defined contribution plans

1,569 1,220

Post employment benefits - defined benefit plans

715555

Salaries, wages and related benefits

113,675 94,423

Other employee benefits

2,054710

Grower payments

46,608 34,738

Insurance

5,843 5,233

Management fees

4848

Materials and consumables

329,583 127,780

Ocean and air freight

103,102 90,304

Operating lease expenses

1,822 1,287

Packaging

20,291 14,382

Provision (reversal of) for write-down of inventories

70786

Repairs and maintenance

11,385 5,781

781,568 503,836

20

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

B2. COST OF SALES, ADMINISTRATION AND OPERATING EXPENSES (CONTINUED)

20252024

$000's $000's

Disclosed as:

Cost of sales700,212439,602

Administration and operating expenses81,35664,234

781,568 503,836

Employee benefits

An accrual is made for benefits due to employees in respect of wages and salaries, annual leave and long service leave when it

is probable that settlement will be required and they are capable of being measured reliably. Accruals are measured at their

nominal values using the remuneration rate expected to apply at the time of settlement.

Contributions to defined contribution plans are recognised as an expense when employees have rendered service

entitling them to the contributions.

The costs relating to shares issued in accordance with the Senior Executive Share Scheme are explained in note D2.

B3. OTHER INCOME AND LOSSESNote

Dividends

881

Fair value loss on interest-free related party loans

(278)(1,663)

(Loss) gain on disposal of property, plant and equipment

(174)1,225

Gain on rights transferred

187 3,113

Gain (loss) on joint ventures call options

-(174)

Gain on lease modification

5979

Gain on fair value equity investmentF3

40,262 3,367

Government grants - Cyclone Gabrielle

-25

Remeasurement of gross liability on put options to non-controlling interest

- (2,341)

40,144 3,632

Disclosed as:

Other income40,5967,810

Other losses(452)(4,178)

40,144 3,632

B4. FINANCE COST

Interest on loans

4,657 4,654

Other interest

416(5)

Bank facility fees

310170

5,383 4,819

Finance costs consist of interest and other costs incurred in connection with the borrowing of funds. Interest expense is

accrued on a time basis using the effective interest method.

21

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

B5. TAXATION

20252024

$000's $000's

(Restated)*

Income tax recognised in profit or loss:

Current tax expense

22,525 5,923

Adjustments recognised in the current year in relation to the current tax of prior years(1,517)

(1,486)

Deferred tax expense relating to the origination and reversal of temporary differences(3,413)6,304

Total income tax expense recognised in profit or loss

17,595 10,741

The prima facie income tax expense on pre-tax accounting profit reconciles to the income tax expense in the financial

statements as follows:

Profit before tax135,29360,389

Income tax expense calculated at applicable corporate tax rates36,77415,948

Non-assessable income(21,045)(8,890)

Non-deductible expenses3,2712,099

Deferred tax on buildings adjustment-2,065

Over provision of income tax in previous year - current tax(1,517)(1,486)

Under provision of income tax in previous year - deferred tax1121,005

17,595 10,741

The tax rates used in the above reconciliation are the corporate tax rate of 28% payable by New Zealand companies under New

Zealand tax law, 30% payable by Australian companies under Australian tax law and 23.38% (2024: 25.60%) payable by US

entities under US tax law, being federal tax 21% and weighted average state tax 2.38% (2024: 4.60%). Shelby JV LLC and its

subsidiaries are look-through entities for US income tax purposes. Therefore, although the Group includes 100% of its net

profit before tax, separately disclosing non-controlling interest, the Group only includes 67.5% of its income tax.

Opening

balance

Credited

to profit or

loss

Acquisition

of subsidiary

Charged to

equity

Charged to

other

comprehen-

sive income

Foreign

exchange

movements

Closing

Balance

$000's $000's $000's $000's $000's $000's $000's

Deferred tax liability

Taxable and deductible temporary differences arise from the following:

31 December 2025

Deferred tax liabilities (assets):

Trade and other receivables(92)

552 (1,869)

---(1,409)

Unharvested agricultural produce7,4611,107

-

---8,568

Property, plant and equipment and software25,523

850 3,701

-(1,729)(122)28,223

Trade and other payables(734)

(2,240) (1,653)

---(4,627)

Lease liability and right-of-use asset(1,934)(1,956)

-

---(3,890)

Equity-settled employee benefits

---

(1,398)--(1,398)

Other financial assets and liabilities(9,783)

(1,726) 1,848

-5,164-(4,497)

Net deferred tax liability20,441(3,413)2,027(1,398)3,435(122)20,970

22

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

B5. TAXATION (CONTINUED)

Opening

balance

Charged

to profit or

loss

Acquisition of

subsidiary

Charged to

other

comprehen-

sive income

Foreign

exchange

movements

Closing

Balance

$000's $000's $000's $000's $000's $000's

31 December 2024 (Restated)*

Deferred tax liabilities (assets):

Trade and other receivables(47)(45)---(92)

Unharvested agricultural produce6,782679---7,461

Property, plant and equipment and software13,7903,9962,2565,09139025,523

Trade and other payables(1,097)363---(734)

Lease liability and right-of-use asset(1,718)(216)---(1,934)

Other financial assets and liabilities7491,52762(12,121)-(9,783)

Net deferred tax liability18,4596,3042,318(7,030)39020,441

Current tax is the taxation expected to be paid to taxation authorities in respect of the current year. Deferred taxation is

recognised in respect of temporary differences between the tax bases of assets and liabilities and their carrying amounts in

the Financial Statements. Current and deferred tax is calculated on the basis of the laws enacted or substantively enacted at

balance date.

Income tax

Current and deferred tax are recognised in profit or loss, except when the tax relates to items charged or credited to other

comprehensive income, in which case the tax is also recognised in other comprehensive income, and when the tax relates to

items charged to equity reserves, in which case the tax is also recognised in the respective equity reserves.

23

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

B6. FOREIGN CURRENCY TRANSACTIONS

In preparing the financial statements of the individual entities, the transactions in currencies other than New Zealand dollars

are recorded at the rates of exchange prevailing at the dates of the transaction. At the end of each reporting period financial

assets and liabilities denominated in foreign currencies are retranslated into New Zealand dollars at the rates prevailing at the

end of the reporting period.

Exchange differences from these transactions are recognised in profit or loss in the period in which they arise.

Income and expenses for each subsidiary whose functional currency is not New Zealand dollars are translated at exchange

rates that approximate the rates at the actual dates of the transactions. Assets and liabilities of each subsidiary are translated

at exchange rates at balance date.

All resulting exchange differences are recognised in the foreign exchange translation reserve, which is a separate component

of equity.

The effective portion of exchange differences on foreign currency borrowings designated as hedges of net investments in

foreign operations is also recognised in the foreign exchange translation reserve.

24

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

C. KEY ASSETS

This section shows the key assets Scales uses to generate operating revenues.

C1. PROPERTY, PLANT AND EQUIPMENT

Land and

buildings at

fair value

Apple trees

at fair value

Plant and

equipment at

cost

Office

equipment

and motor

vehicles at

cost

Capital

work in

progress at

costTotal

$000's $000's $000's $000's $000's $000's

Gross carrying amount

Balance at 1 January 2024 (Restated)*

147,339 37,16287,308 14,04214,397

300,248

Acquisition through business combination

3,920-7,019108435

11,482

Additions

22,562 16,54315,153 2,709 (2,534)

54,433

Disposals

(24,228) (3,048)(5,416)(358)-

(33,050)

Transfer to held for sale

(19,100)----

(19,100)

Revaluation through other comprehensive income

(2,072) 12,512---

10,440

Effect of foreign currency translation

384-1,4854562

2,435

Balance at 31 December 2024 (Restated)*128,80563,169105,54916,50512,860326,888

Acquisition through business combination

--26,945306922

28,173

Additions

2,085 3,4149,948 1,993 3,463

20,903

Disposals

(2,052)3(1,731) (2,117)-

(5,897)

Revaluation through other comprehensive income

(4,533) (6,355)---

(10,888)

Effect of foreign currency translation

(88)-4811(78)

(107)

Balance at 31 December 2025124,21760,231140,75916,69817,167359,072

Accumulated depreciation, and impairment

Balance at 1 January 2024 (Restated)*

2,266 6,88054,299 10,743

-74,188

Depreciation expense

2,033 2,4026,388 1,507

-12,330

Disposals

--(3,851)(262)

-(4,113)

Revaluation through other comprehensive income

(1,962) (2,403)--

-(4,365)

Revaluation (gain) loss through profit or loss

1,253 1,455241-

-2,949

Effect of foreign currency translation

--5523

-555

Balance at 31 December 2024 (Restated)*3,5908,33457,62911,991-81,544

Depreciation expense

1,977 3,6378,321 1,676

-15,611

Disposals

(979)-(1,692) (2,007)

-(4,678)

Revaluation through other comprehensive income

(1,869) (3,637)--

-(5,506)

Revaluation (gain) loss through profit or loss

(2,006) (1,244)132-

-(3,118)

Effect of foreign currency translation

--(115)3

-(112)

Balance at 31 December 20257137,09064,27511,663-83,741

Net book value

As at 31 December 2024125,21554,83547,9204,51412,860245,344

As at 31 December 2025123,50453,14176,4845,03517,167275,331

25

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

C1. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

Accounting policy

Land, buildings and apple trees are included in the statement of financial position at their fair value at the date of revaluation,

less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Valuations are performed

with sufficient regularity such that the carrying amounts do not differ materially from those that would be determined using

fair values at the end of the reporting period.

Any valuation increase arising on the revaluation of such land, buildings and apple trees is recognised in other comprehensive

income and accumulated as a separate component of equity in the revaluation reserve, except to the extent that it reverses a

valuation decrease for the same asset previously recognised in profit or loss, in which case the increase is credited to profit or

loss to the extent of the decrease previously charged. A decrease in carrying amount arising on the revaluation of such land,

buildings and apple trees is charged to profit or loss to the extent that it exceeds the balance, if any, held in the revaluation

reserve relating to a previous revaluation of that asset.

Depreciation on revalued buildings and apple trees is charged to profit or loss. On the subsequent sale or retirement of

revalued property or apple trees, the attributable revaluation surplus remaining in the revaluation reserve is transferred directly

to retained earnings. No transfer is made from the revaluation reserve to retained earnings except when an asset is

derecognised.

Plant and equipment, and office equipment and motor vehicles are stated at cost less accumulated depreciation and

accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the item.

Depreciation is provided on property, plant and equipment, including buildings and apple trees but excluding land and capital

work in progress. Depreciation is charged so as to write off the cost or valuation of assets, other than land and capital work in

progress, over their estimated useful lives, using the straight-line method. The estimated useful lives, residual values and

depreciation method are reviewed at each year end, with the effect of any changes in estimate accounted for on a prospective

basis. The following estimated useful lives are used in the calculation of depreciation:

Buildings10 to 50 years

Apple trees30 years

Plant and equipment2 to 25 years

Office equipment and motor vehicles2 to 20 years

The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the

difference between the sale proceeds and the carrying amount of the asset and is recognised in profit or loss.

Land and buildings measured at fair value

Land and buildings shown at valuation were valued at fair value as at 31 December 2025 by independent registered valuers

Added Valuation Limited and Logan Stone Limited. The valuations were arrived at by reference to market evidence of

transaction prices for similar properties. Recognised Seasonal Employer ("RSE") buildings were arrived at discounted cash

flows analysis of forecast income streams and costs.

In estimating the fair value of an asset or a liability, the Group uses market-observable data to the extent it is available. Where

Level 1 inputs are not available, the Group engages third party qualified valuers to perform the valuation. The group finance

team led by the Chief Financial Officer works closely with the qualified external valuers to establish the appropriate valuation

techniques and inputs to the model. The Chief Financial Officer reports the Group finance team’s findings to the Audit & Risk

Management Committee to explain the methods used and causes of fluctuations in the fair value of assets and liabilities.

26

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

C1. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

Land and buildings measured at fair value (continued)

The fair value of land and buildings is calculated on the basis of market value. Market value is determined by applying income

capitalisation and comparative sales calculations which are benchmarked against depreciated replacement cost calculations.

The valuations include adjustments to observable data for similar properties to take into account property-specific attributes.

The significant unobservable inputs, based on regional averages, for the land and buildings (mainly coolstores and

packhouses) are potential market comparative rentals $14 - $283 per square metre (2024: $12 - $249) and the capitalisation

rates of 7.5% - 8.5% (2024: 6.35% - 8.25%).

The higher the rental rates the higher the fair value. The higher the capitalisation rates the lower the fair value. Significant

changes in either of these inputs would result in significant changes to the fair value measurement.

Orchard land is valued within the range of $32,100 - $168,700 per hectare (2024: $34,100 - $157,500).

The Group’s land and buildings are classified as Level 3 in the fair value hierarchy.

The carrying amount of land and buildings if it had been recognised under the cost model is $60,827,000 (2024: $71,169,000).

Apple trees carried at fair value

The Group’s apple orchards, being the apple trees other than the existing crop on the trees, were valued at fair value by

Boyd Gross B.Agr (Rural Val), Dip Bus Std, FNZIV, FPINZ of Logan Stone Limited as at 31 December 2025.

The market valuations completed by Boyd Gross were based on a combination of discounted cash flow analysis of forecast

income streams and costs from each orchard, and sales comparison approaches. For owned orchards, the fair value of orchard

land and buildings, determined using a sales comparison approach, is deducted from the overall orchard valuation to arrive at

the valuation of the apple trees.

The significant unobservable inputs, based on district averages, for the apple trees are:

20252024

Production levels (gross tray carton equivalent (TCE)) per hectare2,000 - 6,5002,750 - 5,563

Orchard gate returns per TCE$27.00 - $66.00$25.00 - $75.00

Orchard costs per TCE$28.00 to $37.00$20.30 to $34.27

Discount rate16.05% - 17.35%15.88% - 17.88%

The higher the production levels and orchard gate return the higher the fair value. The higher the orchard costs and discount

rate the lower the fair value. Significant changes in any of these inputs would result in significant changes to the fair value

measurement. The Group’s apple trees are classified as level 3 in the fair value hierarchy.

The carrying amount of apple trees had it been recognised under the cost model is $21,952,000 (2024: $21,217,000).

27

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

C1. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

The apple trees, on owned and leased orchards, have the following planting profile:

Total hectares planted

20252024

Premium varieties:

Dazzle

266260

NZ Queen

158159

Pink Lady

88100

Red sports (Fuji and Royal Gala)

349349

Other premium

10779

Traditional varieties:

Braeburn

1527

Royal Gala

99112

Other traditional

94105

1,176 1,191

Risk management strategy

The Group is exposed to financial risks arising from changes in climatic conditions, market prices and the value of the New

Zealand dollar. The Group mitigates these risks by geographical spread of orchards, installing hail and frost protection on

orchards which have shown to be more susceptible to these risks, utilising foreign currency derivative instruments and

building close working relationships with key customers.

C2. UNHARVESTED AGRICULTURAL PRODUCE

20252024

$000's $000's

Balance at beginning of the year

26,648 24,222

Decrease due to harvest

(26,648) (24,222)

Development expenditure

27,921 28,546

Fair value adjustment

2,681 (1,898)

Balance at end of the year

30,602 26,648

The assessment of the value of unharvested agricultural produce was undertaken by management, using a discounted cash

flow model, and is calculated as the fair value less estimated harvest and post-harvest costs (including costs to sell) of the

unharvested crop on the trees at the reporting date. The risk adjusting discount rate represents an allowance for adverse

events that may affect crop, harvest and/or market conditions. This calculation is also benchmarked against orchard costs

incurred during the current growing cycle.

28

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

C2. UNHARVESTED AGRICULTURAL PRODUCE (CONTINUED)

The Group’s unharvested agricultural produce is classified as Level 3 in the fair value hierarchy.

The significant unobservable inputs included in the model are the:

20252024

Production levels (tonnes per hectare per annum)63 - 9859 - 98

Orchard gate returns per TCE$29 to $79$29 to $76

Risk adjusting discount rates46% to 64%46% to 64%

The higher the yield per hectare and the higher the orchard gate returns per TCE, the higher the fair value. The higher the risk

adjusting discount rate, the lower the fair value.

C3. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Details of each of the Group’s material joint ventures at the end of the reporting period are as follows:

Joint venturesPrincipal activityCountry of

Holding

Balance date

incorporation

20252024

ANZ Exports Pty LtdTrading companyAustralia85%42.50% 31 December *

Esro Petfood B.VTrading companyThe Netherlands50%50% 31 December

FI Group Holding Pty LtdTrading companyAustralia100%50% 31 December *

Meateor Australia Pty LtdTrading companyAustralia100%50% 31 December *

Meateor Pet Foods Limited PartnershipTrading companyNew Zealand50%50% 31 December

Shelby SPS LLCTrading companyUnited States33.33%0% 31 December

Summarised financial information in respect of the Group’s joint ventures is set out below. The aggregate summarised

financial information below represents amounts in joint ventures' financial statements prepared in accordance with NZ IFRS

Standards.

* The Australian incorporated entities had a balance date of 30 June which aligned with the income tax year in Australia.

These entities have transitioned to a 31 December balance date, with a six month transitional period ending 31 December 2025.

In September 2025, Scales acquired the remaining 50% shareholding in FI Group Holding Pty Limited and Meateor Australia Pty Limited,

as well as 42.5% of ANZ Exports. Below is the summarised financial information for these entries in respect of Scales equity accounting

share for the first 9 months up until acquisition. Refer to note F3 for the acquisition accounting of FI Group Holding, Meateor Australia

and ANZ Exports.

In December 2025, Shelby SPS LLC was formed and Scales holds a 33.33% shareholding.

29

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

C3. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (CONTINUED)

Summarised financial information for Meateor Pet Foods Limited Partnership

20252024

$000's $000's

Current assets

21,700 20,443

Non-current assets

34,367 33,305

Current liabilities

(8,302) (10,242)

Non-current liabilities

(2,941) (3,351)

Net assets

44,824 40,155

Group's share in the net assets of equity accounted entities

22,412 20,078

Carrying amount of investment in equity accounted entities

22,412 20,078

The above amounts of assets and liabilities include the following:

Cash and cash equivalents

371549

Current financial liabilities (excluding trade and other payables and provisions)

(2,778) (3,500)

Non-current financial liabilities (excluding trade and other payables and provisions)

(1)-

Capital commitments

--

Revenue

63,413 60,863

Profit for the year after tax

4,904 2,117

Other comprehensive income attributable to the owners of the company

1,728 (3,229)

Total comprehensive income

6,632 (1,112)

The above profit for the year includes the following:

Depreciation and amortisation

1,940 1,643

Interest income

3-

Interest expense

481937

Income tax expense

--

Reconciliation of the above summarised financial information to the carrying amount of the interest in the joint

venture recognised in the consolidated financial statements:

Share of profit before taxation

2,453 1,059

Share of income tax

(1)-

Share of other comprehensive income (net of tax)

866 (1,615)

Share of net profit for the year and total comprehensive income3,318(556)

Carrying value at beginning of the year

20,078 21,634

Deferred tax on business combinations made by equity accounted entities

16-

Dividends and distributions paid by equity accounted entities

(1,000) (1,000)

Investment in equity accounted entities22,41220,078

30

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

C3. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (CONTINUED)

20252024

$000's $000's

Underlying financial performance of Meateor Pet Foods Limited Partnership:*

Underlying EBITDA/EBITDA**7,322

4,697

Depreciation and amortisation(1,940)

(1,643)

Underlying finance revenue/finance revenue3

-

Underlying finance costs/finance cost(481)

(937)

Income tax expense-

-

Underlying NPAT/NPAT4,9042,117

Share of Meateor Pet Foods Limited Partnership Underlying NPAT included in Group Underlying EBITDA2,4521,059

* "Underlying EBITDA", "Underlying finance costs", "Underlying finance revenue" and "Underlying NPAT" are non-GAAP profit

measures. The Directors and management believe that these profit measures provide meaningful information that is helpful to

investors and gives them a better understanding of a company’s financial performance when presented in addition to GAAP (NZ

IFRS) information. The Underlying profit measures provided align more closely with the operating result of the Joint Ventures.

** EBITDA is a non-GAAP measure and is defined internally by management as Earnings before Interest, Tax, Depreciation and

Amortisation

Underlying EBITDA and Underlying NPAT are equal to EBITDA and NPAT for both 2025 and 2024.

Summarised financial information for the ANZ Exports Pty Ltd and FI Group Holding Pty Ltd

- Pre acquisition period ending 30 September 2025

Current assets

- 64,307

Non-current assets

-2,144

Current liabilities

- (44,495)

Non-current liabilities

- (1,925)

Net assets

- 20,031

Group's share in the net assets of equity accounted entities

-9,971

Goodwill

- 25,967

Effect of foreign exchange translation

-1,139

Carrying amount of investment in equity accounted entities

- 37,077

The above amounts of assets and liabilities include the following:

Cash and cash equivalents

-976

Current financial liabilities (excluding trade and other payables and provisions)

- (27,780)

Non-current financial liabilities (excluding trade and other payables and provisions)

- (4,738)

31

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

C3. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (CONTINUED)

20252024

$000's $000's

Revenue

381,379 482,730

Profit for the year after tax

8,387 10,605

Other comprehensive income attributable to the owners of the company

4,682 (2,672)

Total comprehensive income

13,069 7,933

The above profit for the year includes the following:

Depreciation and amortisation

9556

Interest income

2347

Interest expense

1,310 1,910

Income tax expense

4,440 6,029

Reconciliation of the above summarised financial information to the carrying amount of the interest in the joint

venture recognised in the consolidated financial statements:

Share of profit before taxation

6,897 8,269

Share of income tax

(2,069) (3,001)

Share of other comprehensive income (net of tax)

997 (1,571)

Share of net profit for the year and total comprehensive income5,8253,697

Carrying value at beginning of the year37,077

32,786

Dividends and distributions paid by equity accounted entities

(1,645)(545)

Effect of foreign exchange translation

502 1,139

Investment acquired

(41,759)-

Investment in equity accounted entities-37,077

Underlying financial performance of ANZ Exports Pty Ltd and FI Group Holding Pty Ltd :*

Underlying EBITDA/EBITDA**13,997

18,594

Depreciation and amortisation(95)

(56)

Underlying finance revenue/finance revenue234

7

Underlying finance costs/finance cost(1,310)

(1,910)

Income tax expense(4,440)

(6,029)

Underlying NPAT/NPAT8,38710,605

Share of ANZ Exports Pty Ltd and FI Group Holding Pty Ltd Underlying NPAT4,8285,270

included in Group Underlying EBITDA

* "Underlying EBITDA", "Underlying finance costs", "Underlying finance revenue" and "Underlying NPAT" are non-GAAP profit

measures. The Directors and management believe that these profit measures provide meaningful information that is helpful to

investors and gives them a better understanding of a company’s financial performance when presented in addition to GAAP (NZ

IFRS) information. The Underlying profit measures provided align more closely with the operating result of the Joint Ventures.

** EBITDA is a non-GAAP measure and is defined internally by management as Earnings before Interest, Tax, Depreciation and

Amortisation

Underlying EBITDA and Underlying NPAT are equal to EBITDA and NPAT for both 2025 and 2024.

32

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

C3. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (CONTINUED)

Summarised financial information for the Meateor Australia Pty Ltd - Pre acquisition period ending 30 September 2025

20252024

$000's $000's

Current assets

- 20,617

Non-current assets

- 32,898

Current liabilities

- (17,164)

Non-current liabilities

- (34,862)

Net assets

-1,489

Group's share in the net assets of equity accounted entities

-745

Unrecognised bargain purchase gain

-(708)

Effect of foreign exchange translation

-18

Carrying amount of investment in equity accounted entities

-55

The above amounts of assets and liabilities include the following:

Cash and cash equivalents

-5,524

Current financial liabilities (excluding trade and other payables and provisions)

- (11,060)

Non-current financial liabilities (excluding trade and other payables and provisions)

- (34,862)

Revenue

47,259 42,026

Profit for the year after tax

1,823(620)

Other comprehensive income attributable to the owners of the company

(1,606) (2,764)

Total comprehensive income

217(3,384)

The above profit for the year includes the following:

Depreciation and amortisation

2,732 2,852

Interest income

29 3,300

Interest expense

2,187 4,530

Income tax expense

1,763 (1,472)

Reconciliation of the above summarised financial information to the carrying amount of the interest in the joint

venture recognised in the consolidated financial statements:

Share of profit before taxation

1,793(395)

Share of income tax

(881)105

Share of other comprehensive income (net of tax)

798 (1,287)

Share of net profit for the year and total comprehensive income1,710(1,577)

Carrying value at beginning of the year55

1,614

Dividends and distributions paid by equity accounted entities

--

Effect of foreign exchange translation

6618

Investment acquired

(1,831)-

Investment in equity accounted entities-55

33

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

C3. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (CONTINUED)

20252024

$000's $000's

Underlying financial performance of Meateor Australia Pty Ltd:*

Underlying EBITDA/EBITDA**8,476

1,990

Depreciation and amortisation(2,732)

(2,852)

Finance revenue29

3,300

Adjustment-

(3,300)

Underlying finance revenue****29(0)

Finance cost(2,187)

(4,530)

Adjustment862

2,841

Underlying finance cost****(1,325)(1,689)

Income tax expense(1,763)

1,472

Underlying NPAT***2,686(1,079)

Adjustment(862)459

NPAT1,823(620)

Share of Meateor Australia Pty Ltd Underlying NPAT included in Group Underlying EBITDA1,344(346)

* "Underlying EBITDA", "Underlying finance costs", "Underlying finance revenue" and "Underlying NPAT" are non-GAAP profit

measures. The Directors and management believe that these profit measures provide meaningful information that is helpful to

investors and gives them a better understanding of a company’s financial performance when presented in addition to GAAP (NZ

IFRS) information. The Underlying profit measures provided align more closely with the operating result of the Joint Ventures.

** EBITDA is a non-GAAP measure and is defined internally by management as Earnings before Interest, Tax, Depreciation and

Amortisation

***Underlying NPAT excludes an adjustment of $862k expense for 2025 (Scales share $431k) and $459k for 2024 (Scales share $57k).

The adjustments relate to excluding the non-cash entries in relation to the interest-free related party loan, comprising the gain

on initial recognition of the loan and the unwind of the discount. The non cash entries are included for NZ IFRS financial

purposes but are excluded from Underlying NPAT.

****Underlying finance costs and underlying finance revenue are non-GAAP measures that are defined by management as the

finance costs and finance revenue exclusive of the unwinding discount on the related party loan, the Fayman acquisition

settlement adjustments.

Summarised financial information for Esro Petfood B.V.

Current assets

10,611 9,620

Non-current assets

20,715 13,507

Current liabilities

(11,294) (7,019)

Non-current liabilities

(33,945) (22,370)

Net assets

(13,913)(6,262)

Group's share in the net assets of equity accounted entities

(6,957) (3,131)

Effect of foreign exchange translation

--

Carrying amount of investment in equity accounted entities

--

34

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

C3. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (CONTINUED)

20252024

$000's $000's

The above amounts of assets and liabilities include the following:

Cash and cash equivalents

28 2,853

Current financial liabilities (excluding trade and other payables and provisions)

(814)(708)

Non-current financial liabilities (excluding trade and other payables and provisions)

(33,966) (20,095)

Revenue

31,022 14,980

Loss for the year after tax

(5,849) (3,511)

Other comprehensive income attributable to the owners of the company

--

Total comprehensive income (loss)

(5,849) (3,511)

The above loss for the year includes the following:

Depreciation and amortisation

(2,864) 1,384

Interest expense

(2,043) 1,383

Income tax expense

1,209 1,170

Reconciliation of the above summarised financial information to the carrying amount of the interest in the joint

venture recognised in the consolidated financial statements:

Share of profit before taxation

--

Share of income tax

--

Share of other comprehensive income (net of tax)

--

Share of net profit for the year and total comprehensive income--

Carrying value at beginning of the year

--

Effect of foreign exchange translation

--

Investment in equity accounted entities--

Underlying financial performance of Esro Petfood B.V.:*

Underlying EBITDA/EBITDA**(2,151)

(1,914)

Depreciation and amortisation(2,864)

(1,384)

Underlying finance revenue/finance revenue-

-

Underlying finance costs/finance cost(2,043)

(1,383)

Income tax expense1,209

1,170

Underlying NPAT/NPAT(5,849)(3,511)

Share of Esro Petfood B.V. Underlying NPAT included in Group Underlying EBITDA(2,925)(1,755)

* "Underlying EBITDA", "Underlying finance costs", "Underlying finance revenue" and "Underlying NPAT" are non-GAAP profit

measures. The Directors and management believe that these profit measures provide meaningful information that is helpful to

investors and gives them a better understanding of a company’s financial performance when presented in addition to GAAP (NZ

IFRS) information. The Underlying profit measures provided align more closely with the operating result of the Joint Ventures.

35

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

C3. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (CONTINUED)

** EBITDA is a non-GAAP measure and is defined internally by management as Earnings before Interest, Tax, Depreciation and

Amortisation

Esro Petfood B.V. generated an underlying loss of $5.9m (Scales share of $2.9m) for the year end 31 December 2025. The Group

does not provide a guarantee which results in the loss being capped at zero.

For NZ IFRS financial reporting purposes no profit has been recognised in Scales Group result from inception.

Shelby SPS LLC

The Group recognised $27k share of profit before taxation for Shelby SPS LLC during the year.

36

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

C4. GOODWILL

20252024

Note$000's $000's

Gross carrying amount

Balance at beginning of the year40,63036,972

Goodwill recognised on business acquisitionF3129,03619

Effect of foreign currency exchange differences(846)3,639

Balance at end of the year

168,82040,630

Goodwill arising on the acquisition of a business is carried at cost as established at the date of acquisition of the business

less accumulated impairment losses, if any. Goodwill is tested for impairment annually, or more frequently if there are

indications that goodwill might be impaired. For the purpose of impairment testing, goodwill has been allocated to the

cash-generating units (CGUs) listed below which represent the lowest level at which the Directors monitor goodwill.

Global Proteins - ANZ Exports4,381-

Global Proteins - FI Group Holding98,669

Global Proteins - Meateor Australia25,986-

Global Proteins - Shelby32,10832,954

Horticulture - Fern Ridge5,7025,702

Horticulture - Profruit1919

Logistics1,9551,955

168,82040,630

As at 31 December 2025, the Directors have determined, based on discounted cash flow and value in use calculations, that

there is no impairment of goodwill associated with the above CGUs.

The discounted cash flow and value in use calculation uses future cash flows covering a five year period based on

a Board approved budget. The models were based on the following key assumptions:

20252024

Pre-tax discount rates ANZ Exports CGU28%N/A

Pre-tax discount rates Other CGU8-17%9-16%

Annual growth rates2-3%2%

37

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

C5. INVENTORIES

20252024

$000's $000's

Finished goods

112,761 19,897

Other

6,857 5,065

119,61824,962

Inventories are stated at the lower of cost and net realisable value. Cost means the actual cost of the inventory and in

determining cost the first in first out basis of stock movement is followed, with due allowance having been made for

obsolescence. Net realisable value represents the estimated selling price for inventories less all estimated costs of

completion and costs necessary to make the sale.

A provision of $0.07m (2024: $0.5m) has been recorded relating to aged inventory within the Global Proteins division. The

provision relates to inventory that has reached or is nearing its expiry date and cannot be sold or may not be sold with certainty

in the market. The provision includes the costs of the inventory plus disposal costs.

C6. IMPAIRMENT OF ASSETS

At the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible assets to determine

whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the

recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not

possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the CGU

to which the asset belongs.

A CGU to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication

that the unit may be impaired. If the recoverable amount of the CGU is less than its carrying amount, the impairment loss is

allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro

rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised directly in profit or

loss and is not reversed in subsequent periods.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated

future pre-tax cash flows are discounted to their present value using a pre-tax discount rate that reflects current market

assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have

not been adjusted.

If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the

asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless

the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

38

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

C7. SOFTWARE

Software is stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that

is directly attributable to the acquisition of the item. Amortisation is calculated on a straight line basis. The estimated useful

life of 3 years is used in the calculation of amortisation.

20252024

$000's $000's

Gross carrying amount

Opening balance9,197

8,558

Acquisition through business combination-

132

Additions1,247

507

Closing balance

10,444 9,197

Accumulated amortisation

Opening balance(8,142)

(7,398)

Amortisation expense(1,072)

(744)

Closing balance

(9,214) (8,142)

Net book value1,2301,055

39

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

D. CAPITAL FUNDING

This section explains how Scales manages its capital structure and how dividends are returned to shareholders.

Capital management

The Group’s capital includes share capital, reserves and retained earnings. The Group’s policy is to maintain a strong capital

base so as to maintain investor, creditor and customer confidence and to sustain the future development of the business. The

impact of the level of capital on shareholders’ return is also recognised and the Group recognises the need to maintain a

balance between the higher returns that might be possible with greater gearing and the advantages and security afforded by a

sound capital position.

D1. SHARE CAPITAL

Issued and paid up capital consists of 145,018,818 fully paid ordinary shares (2024: 143,571,527 shares) less treasury stock of

1,298,926 shares (2024: 1,144,690 shares) (refer to note D2). All shares rank equally in all respects.

Shares issued or purchased on market under the Senior Executive Share Scheme (Share Scheme) (note D2) are treated as

treasury stock until vesting to the employee.

Number of shares

20252024

Fully paid ordinary shares:

Opening balance143,571,527 143,095,981

Share Scheme - shares issued461,699475,546

Fayman acquisition - shares issued985,592

Closing balance145,018,818 143,571,527

Treasury stock:

Opening balance1,144,690 1,160,229

Share Scheme - shares issued461,699 475,546

Share Scheme - shares forfeited and sold- (68,931)

Share Scheme - shares fully vested(307,463) (422,154)

Closing balance1,298,926 1,144,690

The available subscribed capital of $59,807,309 (2024: $51,835,684) represents the amount of the shareholders’ equity

that is available to be returned to shareholders on a tax-free basis.

In accordance with the Companies Act 1993 the Company does not have a limited amount of authorised capital and issued

shares do not have a par value.

20252024

Movement in share capital related to share-based payments:$000's $000's

Equity-settled employee benefit share scheme vested

Interest-free loan became full recourse8571,271

Accumulated share option value reclassified from reserve into share capital679578

Accumulated dividends reclassified from retained earnings into share capital127221

1,663 2,070

40

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

D2. RESERVES

Revaluation

Cash flow

hedge

Share of

joint

ventures

Equity-settled

employee

benefits

Foreign

exchange

translation

Pension

plan

reserve

Total

reserves

$000's $000's $000's $000's $000's $000's $000's

Balance at 1 January 2024 (Restated)*

94,244 5,400 2,0941,03946976

103,322

Other comprehensive income (loss)9,714(30,198)(4,021)-3,630

218

(20,657)

Transfer to retained earnings

(16,182)-----

(16,182)

Recognition of share-based payments

---710--

710

Shares fully vested

---(578)--

(578)

Balance at 31 December 2024 (Restated)*87,776(24,798)(1,927)1,1714,09929466,615

Other comprehensive (loss) income(3,653)12,2912,419-1,584

207

12,848

Transfer to retained earnings

(8,278)-----

(8,278)

Recognition of share-based payments

---1,169--

1,169

Shares fully vested

---(679)--

(679)

Income tax relating to share-based payments

---1,398--

1,398

Balance at 31 December 202575,845(12,507)4923,0595,68350173,073

Revaluation reserve

The revaluation reserve arises on the revaluation of land, buildings and apple trees, net of the related deferred tax.

Cash flow hedge reserve

The cash flow hedge reserve represents the unrealised gains and losses on interest rate and foreign currency contracts taken

out to manage the Group's interest rate and foreign currency risks, net of the related deferred tax.

Equity-settled employee benefits reserve - LTI Scheme

The Share Scheme involves the Company making available interest-free loans to selected senior executives to acquire shares

in the Company. The senior executives will not gain any benefit with respect to the shares purchased under the Share Scheme

unless they remain in employment with the Group for a period of three years from the date of acquisition of those shares.

The shares are held by a custodian during the restricted period and are then transferred to the senior executive. All net

dividends or distributions received in respect of the shares must be applied to repayment of the interest-free loan.

Number of shares

LTI

round

Grant

date

Vesting

date

Exercise

price, $

Opening

balance GrantedForfeited

Vested

and

exercised

Closing

balance

FY217-Apr-227-Apr-253.20307,463--(307,463)-

FY2224-Apr-2324-Apr-263.33361,681---361,681

FY2324-Apr-2424-Apr-272.72475,546---475,546

FY2424-Apr-2524-Apr-283.18-461,699--461,699

Total1,144,690461,699-(307,463)1,298,926

The weighted average share price for shares that vested during 2025 was $4.04.

* The restatements to comparative period are explained in Section H.

41

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

D2. RESERVES (CONTINUED)

The shares issued vest over three years. The estimated value of the share options is determined using the Black-Scholes pricing

calculator and is amortised over the restricted period. This cost is expensed with the corresponding credit included in the

equity-settled employee benefits reserve. Expected share price volatility was based on historical volatility of the Company's

ordinary shares.

20252024

LTI roundFY24FY23

The inputs into the "option pricing calculator" are:

Issue date share price, $4.283.20

Expected share price volatility, %3231

Option life, years33

Risk-free interest rate, %4.524.92

Exercise price, $3.182.72

Fair value, at the grant date, $1.741.11

The Company has expensed in the income statement $627k (2024: $424k) in relation to the share scheme.

Equity-settled employee benefits reserve - PSR Scheme

On 15 December 2023 the Board approved the Scales’ Performance Share Rights Plan to grant performance rights to key senior

management personnel as a long-term incentive programme.

Number of rights

PSR round

Grant

date

Vesting

date

Opening

balance GrantedForfeited

Vested

and

exercised

Closing

balance

FY23 - T120-Dec-239-Mar-2656,748---56,748

FY23 - T220-Dec-2323-Mar-2638,113---38,113

FY23 - T320-Dec-239-Mar-26228,095---228,095

FY24A - T11-May-2412-Mar-2755,904---55,904

FY24A - T21-May-2425-Feb-2737,691---37,691

FY24A - T31-May-2412-Mar-27228,095---228,095

FY24B - T14-Dec-2412-Mar-2738,591---38,591

FY24B - T24-Dec-2425-Feb-2738,591---38,591

FY25 - T11-May-2513-Mar-28-84,779--84,779

FY25 - T21-May-2525-Feb-28-84,779--84,779

FY25 - T31-May-2513-Mar-28-228,095--228,095

Total721,828397,653--1,119,481

TSR Hurdles - Tranches 1 and 3

The proportion of performance rights subject to the absolute TSR growth hurdle which may vest is dependent on Scales' TSR

compound annual growth rate (CAGR) across a 3-year measurement period.

TSR is the Company's total shareholder returns. TSR measures the total return received by Scales' investors from the increase in

the market value of an ordinary share in Scales and the receipt of gross dividends and other distributions, from the

commencement date to the vesting date.

42

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

D2. RESERVES (CONTINUED)

For each tranche that vests the rights are awarded on a straight-line basis dependent on the TSR CAGR achieved.

TSR related performance rights vest according to the following performance criteria for each unvested tranche:

Tranche 1 - % vesting

0%< 8.5% CAGR

25%= 8.5% CAGR

26% - 99% (Straight-line prorata)> 8.5%, < 12.5% CAGR

100%= 12.5% CAGR

Tranche 3 - % vesting

0%= 12.5 % CAGR

1% - 99% (Straight-line prorata)> 12.5%, < 31.1% CAGR

100%= 31.1% CAGR

The TSR performance tranches are calculated across the following periods:

RoundVesting Period

FY23 - Tranche 1 and 320 December 2023 to 11 days after the announcement date of the FY25 Result

FY24 A and B - Tranche 1 and 37 March 2024 to 11 days after the announcement date of the FY26 Result

FY25 - Tranche 1 and 313 March 2025 to 11 days after the announcement date of the FY27 Result

The fair value of the TSR performance rights have been valued under a variant of the dividend adjusted Monte Carlo simulation.

The estimated fair value for each tranche of performance rights issued is amortised over the vesting period from the grant date.

Tranche 1 & 3

The inputs into the Monte Carlo simulation are:FY25FY24AFY24BFY23

Risk free interest rate, %4.465.004.414.53

Expected life, years2.902.902.302.20

Expected share volatility, %*

31.75 30.87 32.62 31.12

Fair value, at the grant date, $4.303.204.053.17

* Volatility represents the volatility of the Scales Corporation's NZD share price over a 3-year period.

EPS Hurdle - Tranche 2

The proportion of performance rights subject to the EPS growth hurdle which may vest is dependent on Scales' EPS compound

annual growth rate (CAGR) across a 3-year measurement period. For each tranche that vests the rights are awarded on a

straight-line basis dependent on the EPS CAGR achieved. EPS growth hurdle is considered a non-market condition.

EPS related performance rights vest according to the following performance criteria:

43

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

D2. RESERVES (CONTINUED)

Tranche 2 - % vesting

0%< 5% CAGR

25%= 5% CAGR

26% - 99% (Straight-line prorata)> 5%, < 10% CAGR

100%= 10% CAGR

The EPS performance is calculated across the following periods:

RoundVesting Period

FY23 - Tranche 220 December 2023 to the announcement date of the FY25 Result

FY24 - Tranche 222 February 2024 to the announcement date of the FY26 Result

FY25 - Tranche 226 February 2025 to the announcement date of the FY27 Result

The fair value of the EPS performance rights have been assessed as Scales' share price as at grant date less the

present value of the dividends forecast to be paid prior to each vesting date.

The estimated fair value for each tranche of performance rights issued is amortised over the vesting period from grant date.

Vesting of performance rights also requires the employee to remain in employment with the Company during the performance

period. The Company has expensed in the income statement $666k (2024: $286k) in relation to performance rights.

Foreign exchange translation reserve

Hedges of a net investment in a foreign operation, including a hedge of a monetary item that is accounted for as part of the net

investment, are accounted for in two ways. Gains or losses relating to the effective portion of the hedge are recognised in other

comprehensive income. Any gains or losses relating to the ineffective portion of the hedge are recognised in profit or loss.

Gains or losses arising on translation of foreign subsidiaries results (Note B6) are also recognised in this reserve.

D3. DIVIDENDS ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY

20252024

$000's $000's

Final dividend paid - 7.75 (2024: 4.25) cents per share11,0826,042

Interim dividend declared - 12.50 (2024: 7.25) cents per share17,99710,332

29,07916,374

All the above dividends were fully imputed.

The 2025 interim dividend was declared on 3 December 2025 and paid on 23 January 2026.

44

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

D4. IMPUTATION CREDIT ACCOUNT

20252024

$000's $000's

Balance at end of the year8,8545,901

The imputation credit account balance represents the net amount available at the reporting date that can be attached to future

dividends declared.

The Scales Corporation Limited consolidated tax group for income tax includes Scales Corporation Limited and all New Zealand

registered subsidiary companies other than Scales Employees Limited and Fayman New Zealand Limited.

D5. EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the profit attributable to shareholders of the Company by the weighted

average number of ordinary shares on issue during the year, excluding shares held as treasury stock. Diluted earnings per share

assumes conversion of all dilutive potential ordinary shares in determining the denominator.

20252024

(Restated)*

Profit attributable to equity holders of the Company, $000's:100,98830,337

Weighted average number of shares:

Ordinary shares142,803,805 142,200,207

Effect of dilutive ordinary shares (non-vested Senior Executive Share Scheme)1,116,045416,550

Weighted average number of Ordinary Shares for diluted earnings per share143,919,850 142,616,757

Earnings per share (cents):

Basic - continuing70.721.3

Diluted - continuing70.221.3

* The restatements to comparative period are explained in Section H.

45

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

E. FINANCIAL ASSETS AND LIABILITIES

IN THIS SECTION

This section explains the financial assets and liabilities of Scales, the related risks and how Scales manages these

risks.

Financial assets

Financial assets are classified into the following specified categories: financial assets ‘at fair value through profit or loss’

(FVTPL) and ‘measured at amortised cost’.

The classification depends on the business model for managing the financial asset and the cash flow characteristics of the

financial asset and is determined at the time of initial recognition or when a change in the business model occurs.

Financial assets at fair value through profit or loss

Financial assets are classified as financial assets at fair value through profit or loss if they are not measured at amortised

cost. Gains and losses on a financial asset designated in this category and not part of a hedging relationship are recognised

in profit or loss.

Financial assets measured at amortised cost

The Group’s financial assets held in order to collect contractual cash flows that are solely payments of principal and interest on

the principal outstanding are measured at amortised cost. Cash and cash equivalents, trade receivables and employee loans

are classified in this category.

Impairment of financial assets

The Group recognises a loss allowance for expected credit losses (ECL) on investments in debt instruments that are measured

at amortised cost, trade and other receivables. The amount of expected credit losses is updated at each reporting date to reflect

changes in credit risk since initial recognition of the respective financial instrument.

The Group always recognises lifetime ECL for trade receivables. The expected credit losses on these financial assets is

estimated using a provision matrix based on the Group’s historical credit loss experience, adjusted for factors that are specific

to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of

conditions at the reporting date, including time value of money where appropriate.

For all other financial instruments, the Group recognises lifetime ECL when there has been a significant increase in credit risk

since initial recognition. However, if the credit risk on the financial instrument has not increased significantly since initial

recognition, the Group measures the loss allowance for that financial instrument at an amount equal to twelve-month ECL.

Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of

a financial instrument. In contrast, twelve-month ECL represents the portion of lifetime ECL that is expected to result from

default events on a financial instrument that are possible within twelve months after the reporting date.

For financial assets, the expected credit loss is estimated as the difference between all contractual cash flows that are due to

the Group in accordance with the contract and all the cash flows that the Group expects to receive, discounted at the original

effective interest rate.

Financial liabilities measured at amortised cost

The Group’s financial liabilities include trade and other payables, borrowings and lease liabilities. These financial liabilities are

initially recognised at fair value net of any directly attributable costs. Subsequent to initial recognition, they are measured at

amortised cost using the effective interest method.

46

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

E. FINANCIAL ASSETS AND LIABILITIES (CONTINUED)

Derivative financial instruments

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently

remeasured to their fair value with reference to observable market data at the end of each reporting period. The resulting gain or

loss is recognised in profit or loss immediately unless the derivative is designated as an effective hedging instrument, in which

event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. The Group designates

certain derivatives as cash flow hedges. A derivative is presented as a non-current asset or a non-current liability where the cash

flow will occur after twelve months and it is not expected to be realised or settled within twelve months. Other derivatives are

presented as current assets or current liabilities.

Hedge accounting

At the inception of a hedge relationship, the Group documents the relationship between the hedging instrument and the

hedged item, along with its risk management objectives and its strategy for undertaking various hedge transactions.

Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents whether the hedging instrument that

is used in a hedging relationship is highly effective in offsetting changes in cash flows of the hedged item, attributable to the

hedged risk.

Cash flow hedges

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is

recognised in other comprehensive income and accumulated as a separate component of equity in the hedging reserve. The

gain or loss relating to the ineffective portion is recognised immediately in profit or loss, and is included in ‘other income’ or

‘other losses’.

Amounts recognised in the hedging reserve are reclassified from equity to profit or loss in the periods when the hedged item is

recognised in profit or loss, in the same line as the recognised hedged item. Hedge accounting is discontinued when the Group

revokes the hedging relationship, the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies for

hedge accounting. Any cumulative gain or loss deferred in the hedging reserve at that time remains in equity and is recognised

when the forecast transaction is ultimately recognised in profit or loss. When a forecast transaction is no longer expected to

occur, the cumulative gain or loss that was deferred in the hedging reserve is recognised immediately in profit or loss unless

the loss is considered recoverable.

Hedges of net investments in foreign operations

Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss on the

hedging instrument relating to the effective portion of the hedge is recognised in other comprehensive income and

accumulated under the heading of foreign exchange translation reserve. The gain or loss relating to the ineffective portion is

recognised immediately in profit or loss. Gains and losses on the hedging instrument relating to the effective portion of the

hedge accumulated in the foreign exchange translation reserve are reclassified to profit or loss on the disposal of the foreign

operation.

47

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

E1. TRADE AND OTHER RECEIVABLES

20252024

$000's $000's

Trade receivables

63,477 33,237

Other receivables

1,629 1,416

Receivables from entities accounted for using the equity method

862-

Goods and services tax

5,589 3,372

71,55738,025

Credit risk management

The Group activities expose it to credit risk which refers to the risk that a counterparty will default on its contractual obligations

resulting in financial loss to the Group. Financial instruments which potentially subject the Group to credit risk principally

consist of cash and cash equivalents, trade and other receivables and advances. The Group performs credit evaluations on

trade customers, obtains trade credit insurance as appropriate but generally does not require collateral. The Group

continuously monitors the credit quality of its major receivables and does not anticipate non-performance of those customers.

Cash and cash equivalents are placed with high credit quality financial institutions.

There is a significant concentration of credit risk with 5 customers who represent 42.18% (2024: 5 customers who represented

26.60%) of trade and other receivables.

The carrying amount of financial assets recorded in the financial statements represents the Group’s maximum exposure to

credit risk.

Included in trade receivables are debtors which are past due at balance date, as payment was not received within one month,

and for which provision for expected credit losses was not material as there has not been a significant change in credit quality

and the amounts are still considered recoverable. No collateral is held over these balances although trade credit insurance

cover is obtained in respect of some specific receivables. Interest is not charged on overdue debtors.

Ageing of past due trade receivables:

1 month26,7586,614

2 months4,7282,019

More than 2 months3,5202,982

35,00611,615

There was an ECL provision of $5.0m as at 31 December 2025 (2024: $0.3m), which is included within the Trade Receivables

balance above.

E2. OTHER FINANCIAL ASSETS

Current

At fair value:

Foreign currency derivative instruments

4,311 1,470

Interest rate swap contracts and forward rate agreements

375760

4,6862,230

48

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

E2. OTHER FINANCIAL ASSETS (CONTINUED)

20252024

Non-current

$000's $000's

At fair value:

Foreign currency derivative instruments

2,700 3,636

Interest rate swap contracts and forward rate agreements

13504

Shares in unlisted companies

284185

At amortised cost:

Employee loans

3,426 3,113

Security deposits held as bank guarantee collateral

52-

Related party loans

26,788 29,750

33,26337,188

E3. TRADE AND OTHER PAYABLES

Trade payables43,52614,011

Accruals13,09010,216

Contract liability8,805-

Employee entitlements11,6145,625

77,03529,852

E4. BORROWINGS

Borrowings are recorded initially at fair value, net of transaction costs. Subsequent to initial recognition, borrowings are

measured at amortised cost with any difference between the initial recognised amount and the redemption value being

recognised in profit or loss over the period of the borrowing using the effective interest method. The fair value of current and

non-current borrowings is approximately equal to their carrying amount.

The Group replaced existing Multi-Option Facility Agreements with Coöperatieve Rabobank U.A., New Zealand Branch

(Rabobank) and Westpac New Zealand Limited (Westpac) with new agreements on 11 November 2021. The existing facility

agreement with ANZ bank New Zealand Limited (ANZ) was also replaced with a new agreement on 11 November 2021.

Australian subsidiaries ANZ Exports Pty Ltd, Fayman International Group Pty Ltd and Meateor Australia Pty Ltd individually have

Business Finance Agreements with Westpac Banking Corporation (Westpac Australia), covering term debt, trade finance (seasonal

facilities) and overdrafts.

Profruit (2006) Limited has an overdraft facility agreement with Westpac New Zealand Limited.

USD Term debt remaining at 31 December 2025 is designated as a hedge of net investments in foreign operations.

AUD Term debt relates to Fayman International Group Pty Ltd and Meateor Australia Pty Ltd.

Facility limit

Undrawn facility

2025202420252024

$000's $000's $000's $000's

Term facilities

Rabobank USD23,63511,635--

Westpac USD23,63511,635--

Westpac (Australia) AUD6,208-250-

49

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

E4. BORROWINGS (CONTINUED)

Facility limit

Undrawn facility

2025202420252024

$000's $000's $000's $000's

Seasonal facilities and overdraft facility

Rabobank seasonal facility20,00020,00020,00020,000

Westpac seasonal facility20,00020,00020,00020,000

ANZ overdraft1,0001,0001,0001,000

Westpac overdraft----

Westpac (Australia) seasonal facility (Trade finance) AUD60,500-14,334-

Westpac (Australia) overdraft AUD13,500-7,905-

Group term debt under the New Zealand banking syndicate is subject to financial covenants tested quarterly on 31 March, 30 June,

30 September and 31 December of each year. The covenant measures the interest cover ratio and net debt to EBITDA ratio of the

Charging Group. The Group has complied with all financial covenants in 2025 and 2024. There are no indications the Group will

have difficulty complying with the covenants in the next 12 months.

Fayman International Group Pty Ltd debt is subject to financial covenants tested semi-annually on 30 June and 31 December

of each year. The covenant measures the financial debt to EBITDA ratio and the capital ratio. At 31 December 2025, Fayman

International Group Pty Ltd ("FIG") was in breach of its capital ratio covenant. Under the terms of the Business Finance Agreement,

this breach gave the lender the contractual right to demand immediate repayment of all outstanding FIG facilities. As a formal

waiver was not in place at the reporting date, the Group does not have an unconditional right to defer settlement for at least

12 months. Consequently, in accordance with NZ IAS 1, the carrying amount of FIG’s term facilities of $2.1 million have been

classified as current liabilities. Subsequent to balance date, on 29 January 2026, a Reservation of Rights letter was issued by

the lender. The lender acknowledged the breach and confirmed they do not currently intend to take enforcement action, subject

to FIG providing satisfactory remediation plans and updated forecasts.

Meateor Australia Pty Ltd debt is subject to financial covenants tested annually on 30 June of each year. The covenant measures

the interest cover ratio, financial debt to EBITDA ratio and the capital ratio. Meateor Australia Pty Ltd (MAP) has complied with all

financial covenants in 2025.

The floating interest rate is 1.20% to 6.27% (2024: 1.20% to 6.97%). USD term borrowing facilities expire 1 July 2027. AUD term

borrowing facilities mature on 21 June 2027 (MAP) and 27 October 2027 (FIG). Although FIG’s contractual maturity is 27 October

2027, FIG’s term borrowings are classified as current at 31 December 2025 due to the covenant breach and absence of a

balance-date waiver. Seasonal facilities, trade finance drawings and overdrafts presented as current borrowings are repayable

within 12 months.

New Zealand bank facilities are secured by a first ranking security interest granted by each of the Charging Group Companies

over all its present and after-acquired property (including proceeds) and a first ranking security interest over any of the Charging

Group Companies' present and future assets and undertakings which are not personal property. The bank facilities are also

secured by first and exclusive registered mortgages over property comprising coolstores, orchards and industrial and commercial

property owned by members of the Charging Group. Charging Group Companies as at 31 December 2025 are Scales Corporation

Limited, Scales Holdings Limited, Mr Apple New Zealand Limited, New Zealand Apple Limited, Fern Ridge Produce Limited,

Profruit (2006) Limited, Geo.H.Scales Limited, Meateor Foods Limited, Scales, Logistics Limited and Meateor Group Limited.

50

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

E4. BORROWINGS (CONTINUED)

Australian bank facilities are secured by a mortgage over lease security and a General Security over all existing and future assets

and undertakings of Meateor Australia Pty Ltd, Meateor Aus Services Pty Ltd, Fayman International Group Pty Ltd, FI Group Holding

Pty Ltd, ANZ Exports Pty Ltd, and Fayman New Zealand Limited.

20252024

$000's $000's

Seasonal (current) and term (non-current) borrowings:

Opening balance41,25965,647

Debt acquired on acquisition through business combination53,2245,444

Drawdowns74,73381,500

Repayments(34,715)(116,024)

Net drawdown on trade finance facilities13,548-

Effect of foreign currency translation6924,692

Closing balance148,74141,259

E5. OTHER FINANCIAL LIABILITIES

Current financial liabilities at fair value

Foreign currency derivative instruments

6,812 23,700

Put options - Shelby JV LLC

- 18,218

6,81241,918

Non-current financial liabilities at fair value

Foreign currency derivative instruments

12,847 18,688

Interest rate swaps

43-

Put options - ANZ Exports Pty Ltd

1,559-

14,44918,688

In 2018 the Group acquired 60% of Shelby JV LLC and its subsidiaries Shelby Foods LLC, Shelby Exports Inc, Shelby Cold

Storage LLC, Shelby Trucking LLC and Shelby Properties LLC (collectively, Shelby Group).

As part of the transaction, the Company entered into an agreement with the vendor whereby the vendor has an option to put a

further 5% of total units in Shelby Group to Scales at a value based on a multiple of Shelby Group EBITDA. The obligation to

acquire the ownership interest under the put option was included in other financial liabilities in 2024. The option has been cancelled

as part of the further 7.5% acquisition in April 2025.

In 2025 the Group acquired an additional 42.5% of ANZ Exports Pty Ltd. As a part of the transaction, the non-controlling interest

has the option to put their 15% of share equity to Scales at a value based on a multiple on ANZ Exports Pty Ltd EBITDA. This transaction

has been accounted for as a gross liability in other financial liabilities and impacting NCI.

51

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

E6. INTEREST RATE RISK

Interest rate risk management

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 may use interest rate swaps and forward rate agreements to manage interest rate risk.

Interest rate swap contracts and forward rate agreements

Under interest rate swap contracts and forward rate agreements, the Group agrees to exchange the difference between fixed

and floating rate interest amounts calculated on agreed notional principal amounts. Such contracts, some of which can

commence in future reporting years, enable the Group to mitigate the risk of changing interest rates on the cash flow exposures

on 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.

Interest rate swap contracts:

Fixed Interest Rate

Notional principal

amountFair value

202520242025202420252024

%%$000's $000's $000's $000's

Maturity Date

Within 1 year1.050.899,5019,752238215

2-5 years3.322.5325,04828,3691071,049

After 5 years------

34,54838,1213451,264

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.

As the critical terms of the interest rate swap contracts and their corresponding hedged items are the same, the Group performs

a qualitative assessment of effectiveness and it is expected that the value of the interest rate swap contracts and the value of

the corresponding hedged items will systematically change in opposite directions in response to movements in the underlying

interest rates. The main source of hedge ineffectiveness in these hedge relationships (which is not material) is the effect of the

counterparty and the Group's own credit risk on the fair value of the interest rate swap contract, which is not reflected in the fair

value of the hedged item attributable to the change in interest rates. No other sources of ineffectiveness emerged from these

hedging relationships.

52

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

E6. INTEREST RATE RISK (CONTINUED)

The sensitivity analysis below has been determined based on the exposure to interest rates for both derivatives and

non-derivative instruments at the reporting date. For floating rate liabilities, the analysis is prepared assuming the amount of

liability outstanding at reporting date was outstanding for the whole year. A 1% increase or decrease is used when reporting

interest rate risk internally to key management personnel and represents management’s assessment of the reasonably

possible change in interest rates. Impact on net profit after tax assumes that none of floating interest rate borrowings were

hedged.

20252024

+1%-1%+1%-1%

$000's $000's $000's $000's

Impact on net profit after tax422(422)350(350)

Impact on cash flow hedge reserve net of tax738(776)708(749)

E7. FOREIGN CURRENCY RISK

Foreign currency risk management

Foreign currency risk is the risk that the value of the Group’s assets and liabilities or revenues and expenses will fluctuate due

to changes in foreign exchange rates. The Group is exposed to currency risk as a result of normal trading transactions and lending

denominated in foreign currencies. The currencies in which the Group primarily trades are the Australian dollar, Euro, Canadian

dollar, Great Britain pound and United States dollar, with the largest exposure being to the United States dollar.

Currency risk is managed by the natural hedge of foreign currency receivables and payables and the use of foreign currency

derivative financial instruments. 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.

Foreign currency instruments at balance date:

20252024

Contract

ValueFair Value

Contract

ValueFair Value

$000's $000's $000's $000's

Sale commitments forward foreign exchange contracts990,646(11,152)572,711(28,487)

Sale commitments foreign exchange options101,818(1,496)178,507(8,795)

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 2026 to 2030 financial years at which stage the amount deferred in equity will be released into profit

or loss.

53

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

E7. FOREIGN CURRENCY RISK (CONTINUED)

For hedges of highly probable forecast sales and purchases, as the critical terms (i.e. the notional amount, life and underlying)

of the foreign currency instruments and their corresponding hedged items are the same, the Group performs a qualitative

assessment of effectiveness and it is expected that the value of the instruments and the value of the corresponding hedged

items will systematically change in opposite directions in response to movements in the underlying exchange rates. The Group

uses the hypothetical derivative method for the hedge effectiveness assessment and measurement of hedge ineffectiveness.

As for the hedge of the net investment in Meateor US LLC sub-group, the Group assesses effectiveness by comparing the

nominal amount of the net assets designated in the hedge relationship with the nominal amount of the hedging instrument.

This is a simplified approach because the currency of the exposure and hedging instruments perfectly match and the Group

excludes from the designation the foreign currency basis spread.

The following table demonstrates the sensitivity to a reasonably possible change of 5% in the value of New Zealand dollar

against other foreign currencies, with all other variables held constant. The impact on the Group’s profit before tax is due to

changes in the fair value of monetary assets and liabilities. The impact on the Group’s equity is due to changes in the fair value

of forward exchange contracts designated as cash flow hedges.

20252024

+5%-5%+5%-5%

$000's $000's $000's $000's

Impact on net profit after tax

USD(814)900(554)612

AUD432(477)(6)6

EUR(32)35(2)2

GBP--(4)4

CAD----

NZD5(6)--

Impact on cash flow hedge reserve net of tax

USD(31,376)28,337(21,847)19,588

AUD(2,132)1,929(6)5

EUR(2,590)2,298(2,320)2,086

GBP(845)748(807)714

CAD(736)666(250)226

NZD(18)16--

54

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

E8. CATEGORIES OF FINANCIAL INSTRUMENTS

20252024

$000's $000's

Financial assets:

Amortised cost160,906121,269

Derivative instruments in designated hedge accounting relationships7,3996,370

Fair value through profit or loss284185

168,589127,824

Financial liabilities:

Amortised cost385,315147,828

Derivative instruments in designated hedge accounting relationships19,70242,388

Fair value through profit or loss1,55918,218

406,576208,434

The carrying amount of financial instruments at amortised cost approximates their fair value.

Liquidity risk management

The Group manages liquidity risk by maintaining adequate reserves and banking facilities, by continuously monitoring forecast

and actual cash flows and matching the maturity profiles of financial assets and liabilities.

The following table detail the Group’s remaining contractual maturity for its financial liabilities. The tables have been drawn up

based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to

pay. The table includes both interest and principal cash flows. Foreign currency derivative liabilities are presented below at fair

value.

E9. MATURITY PROFILE OF FINANCIAL LIABILITIES

On demand

Within 3

months

4 months

to 1 year 1-5 yearsTotal

$000's $000's $000's $000's $000's

2025

Trade and other payables-77,035--77,035

Dividend declared-17,997--17,997

Put options---1,5591,559

Bank overdrafts6,475---6,475

Borrowings62,2271,5594,71487,237155,737

Purchase price payable--8,31033,23841,548

Foreign currency derivatives-3326,48012,84719,659

68,70296,92319,504134,881320,010

2024

Trade and other payables-29,852-29,852

Dividend declared-10,332--10,332

Put options-18,218--18,218

Borrowings-62499042,55044,164

Foreign currency derivatives-1,44121,03419,91342,388

-60,46722,02462,463144,954

55

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

F. GROUP STRUCTURE

IN THIS SECTION

This section provides information about Scales Group structure and how it affects the financial position and performance

of the Group. It includes information about subsidiaries and non-controlling interests.

F1. SUBSIDIARY COMPANIES

Subsidiary companiesPrincipal activityCountry of

Holding

Balance date

incorporation

20252024

ANZ Exports Pty LtdTrading companyAustralia85%42.5% 31 December

Fern Ridge Produce LimitedTrading companyNew Zealand100%100% 31 December

Fayman New Zealand LimitedTrading companyNew Zealand95%47.5% 31 December

FI Group Holding Pty LtdHolding companyAustralia100%50% 31 December

Fayman International Group Pty LtdTrading companyAustralia100%50% 31 December

Geo. H. Scales LimitedNon trading company New Zealand100%100% 31 December

Longview Group Holdings LimitedNon trading company New Zealand100%100% 31 December

Meateor Australia Pty LtdTrading companyAustralia100%50% 31 December

Meateor Australia Services Pty LtdTrading companyAustralia100%50% 31 December

Meateor Foods Australia Pty LimitedTrading companyAustralia100%100% 31 December

Meateor Foods LimitedTrading companyNew Zealand100%100% 31 December

Meateor Group LimitedHolding companyNew Zealand100%100% 31 December

Meateor US LLCHolding companyUnited States100%100% 31 December

Mr Apple New Zealand LimitedTrading companyNew Zealand100%100% 31 December

New Zealand Apple LimitedTrading companyNew Zealand100%100% 31 December

Profruit (2006) LimitedTrading companyNew Zealand100%100% 31 December

Scales Employees LimitedCustodial company New Zealand100%100% 31 December

Scales FI Group Holding Pty LtdHolding companyAustralia100%100% 31 December

Scales Holdings LimitedHolding companyNew Zealand100%100% 31 December

Scales Logistics LimitedFreight consolidator New Zealand100%100% 31 December

Scales Logistics Australia Pty LtdFreight consolidator Australia100%100% 31 December

Selacs Insurance LimitedInsurance companyNew Zealand100%100% 31 December

Shelby Cold Storage, LLCColdstore operatorUnited States67.5%60% 31 December

Shelby Exports, IncNon trading company United States67.5%60% 31 December

Shelby Foods, LLCTrading companyUnited States67.5%60% 31 December

Shelby JV LLCHolding companyUnited States67.5%60% 31 December

Shelby Properties LLCNon trading company United States67.5%60% 31 December

Shelby Trucking LLCTrading companyUnited States67.5%60% 31 December

Subsidiary companies are controlled by the Company. Control is achieved when the Company:

• has power over the investee;

• is exposed, or has rights, to variable returns from its involvement with the investee; and

• has the ability to use its power to affect its returns.

Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company

loses control of the subsidiary.

56

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

F2. NON-CONTROLLING INTERESTS

The following non-wholly owned subsidiaries of the Group have material non-controlling interests.

Proportion of equity interest held by non-controlling interests:

Subsidiary companiesCountry of

Non-controlling interest

incorporation

20252024

ANZ Exports Pty LtdAustralia15%N/A

Fayman New Zealand LimitedNew Zealand5%N/A

Shelby JV LLC and its subsidiariesUnited States32.5%40%

Summarised financial information for ANZ Exports Pty Ltd

On 30 September 2025 the Group acquired a further 42.5% interest in ANZ Exports Pty Ltd, bringing to the total Group ownership

interest to 85% and we have gained control in the entity (see note F3).

The summarised financial information in respect of the Group’s subsidiary that has material non-controlling interests as at

31 December 2025, reflecting 100% of the underlying subsidiary’s relevant figures, is set out below:

2025

$000's

Statement of financial position

Current assets19,610

Non-current assets352

Current liabilities(17,305)

Non-current liabilities-

Net assets2,657

Attributable to:

Equity holders of the Company2,259

Non-controlling interests399

Total dividends paid to non-controlling interests-

2025

Oct - Dec

$000's

Statement of comprehensive income

Total revenue25,566

Net profit for the year225

Attributable to:

Equity holders of the Company191

Non-controlling interests34

Statement of cash flows

Net cash provided by operating activities2,216

Net cash provided by investing activities-

Net cash (used in) provided by financing activities(2,216)

Net (decrease) increase in cash(1)

57

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

F2. NON-CONTROLLING INTERESTS (CONTINUED)

Summarised financial information for Shelby JV LLC and its subsidiaries

On 16 April 2025 the Group acquired a further 7.5% interest in Shelby JV LLC for USD $24.35m, bringing the total Group

ownership interest to 67.5%. As part of the acquisition, the put option over 5% of Shelby JV LLC was cancelled.

The transaction has been accounted for as an equity transaction. The incremental directly attributable transaction costs

incurred to acquire the additional 7.5% interest were deducted from parent equity. The difference between the amount by which

the non-controlling interests were adjusted and the fair value of the consideration paid was recognised directly in equity and

attributed to the owners of the parent.

The summarised financial information in respect of the Group’s subsidiary that have material non-controlling interests as at

31 December 2025, reflecting 100% of the underlying subsidiary’s relevant figures, is set out below:

20252024

$000's $000's

Statement of financial position

Current assets35,01637,789

Non-current assets21,76717,669

Current liabilities(9,414)(10,746)

Non-current liabilities(65)(144)

Net assets47,30544,567

Attributable to:

Equity holders of the Company31,93126,740

Non-controlling interests15,37417,827

Total dividends paid to non-controlling interests14,84617,175

Statement of comprehensive income

Total revenue234,843235,136

Net profit for the year48,06048,327

Attributable to:

Equity holders of the Company31,38328,996

Non-controlling interests16,67619,331

Statement of cash flows

Net cash provided by operating activities52,98950,589

Net cash used in investing activities(6,366)(5,650)

Net cash used in financing activities(44,758)(43,026)

Net increase in cash1,8651,913

58

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

F3. ACQUISITION OF AUSTRALIAN ENTITIES

On 29 September 2025 the Group entered into a sale and purchase agreement with Fayman International Pty Limited and

Colorado Aus Pty Limited to purchase the remaining 50% of FI Group Holding Pty Limited (“FIG”) and its subsidiaries for

$69.2m and an additional 42.5% of ANZ Exports Pty Limited (“ANZ”) for $3.8m.

On 29 September 2025 the Group also entered into a sale and purchase agreement with JAGF Pty Limited, PMI Investments

Pty Limited, Maramel Pty Limited, JMA International Pty Limited and Colorado Aus Pty Limited to purchase the remaining 50%

of Meateor Australia Pty Limited (“MAP”) and its subsidiary for $17.4m.

On 30 September 2025, the acquisition date, these transactions were settled for a total acquisition price of $90.5m.

At acquisition, the discounted fair value of the consideration was $84.7m. MAP and FIG became wholly owned subsidiaries,

and ANZ an 85% owned subsidiary.

Consideration is as follows:

- AUD 37.8m converted at 30 September 2025 to NZD 43.0m paid in cash on 30 September 2025;

- AUD 5.3m converted at 30 September 2025 to NZD 6.0m payable in new shares to be issued on or about 31 October 2025;

- AUD 36.4m converted at 30 September 2025 to NZD 41.5m payable in five annual instalments of AUD 7.3m (NZD 8.3m) each,

starting on 30 September 2026 and ending on 30 September 2030. The acquisition fair value of the deferred consideration was

$35.7m.

The purchase price is payable in AUD.

Subsequently, AUD 11.6m converted to NZD 13.2m was paid in cash for the repayment of the related party loan on

30 September 2025.

The sale and purchase agreements were simultaneous and interdependent. Both included a lockbox arrangement, whereby

the Group was entitled to 100% of MAP and FIG earnings and 85% of ANZ earnings from 1 April 2025.

ANZ's and FIG's extensive edible protein distribution networks with global supply chains, and MAP's manufacturing facility in

Melbourne are strategically important to the Global Proteins division, and the acquisitions align with the group long term

growth strategy.

Purchase of the 50% in FIG, 42.5% in ANZ, and 50% in MAP were treated as a stepped business combination. The previously

held interest was remeasured to fair value at the acquisition date with any gain or loss on the measurement recognized in profit

or loss. Due to the complexity and material nature of the acquisitions, the intangible assets acquired in the transaction are

determined on a provisional basis. The remainder of the business combination accounting was finalised at 31 December 2025.

Details of the ANZ acquisition

Carrying

value on

Fair value on

acquisition

$000's$000's

Current assets

Cash and bank balances99

Trade and other receivables5,2135,213

Derivative assets137137

Inventory9,0759,308

Prepayments492492

Non-current assets

Deferred tax asset320250

59

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

F3. ACQUISITION OF AUSTRALIAN ENTITIES (CONTINUED)

Details of the ANZ acquisition (continued)

Carrying

value on

Fair value on

acquisition

$000's$000's

Current liabilities

Trade and other payables(4,973)(4,973)

Current tax payable(291)(291)

Derivative liabilities(41)(41)

Related party payables(5,200)(5,200)

Borrowings(2,547)(2,547)

Net assets acquired2,1942,357

Consideration paid in cash1,946

Consideration paid in Scales Corporation Limited shares309

Fair value of deferred consideration1,291

Fair value of the previously held equity interest3,546

Less fair value of 15% non-controlling interest(354)

Less fair value of identifiable assets acquired and liabilities assumed(2,357)

Goodwill4,381

Fair value measurement of deferred consideration

The deferred consideration was measured at its fair value at the acquisition date, using a discount rate of 5.26%.

The discount rate is Group’s incremental borrowing rate, reflecting the time value of money, foreign exchange risk and credit risk.

The valuation was based on contractual payment terms and assumes no early settlement or default.

Future

payment

Nominal

amount

Discounted

amount

Nominal

amount

Discounted

amount

AUD 000'sAUD 000'sNZD 000'sNZD 000's

30-Sep-26264252301287

30-Sep-27264239301272

30-Sep-28264227301258

30-Sep-29264215301244

30-Sep-30264202301230

Total1,3201,1351,5051,291

The deferred consideration is classified as a financial liability measured at amortised cost. Interest expense arising from

unwinding the discount is recognised in the profit or loss in the consolidated statement of comprehensive income over the payment period

using the effective interest method.

Fair value measurement of identifiable net assets acquired

Inventory acquired has been measured at the fair value, being the sales price less costs to sell. Costs to sell include the cost of

raw materials, processing, inbound and outbound freight, and other applicable sale costs.

60

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

F3. ACQUISITION OF AUSTRALIAN ENTITIES (CONTINUED)

Details of the ANZ acquisition (continued)

Previously held equity interest

A gain of $2.5m was recognised as a result of measuring at fair value the 42.5% equity interest in ANZ held prior to

the business combination. The gain is included in other income in the consolidated statement of comprehensive income

for the year ended 31 December 2025.

Non-controlling interest

The Group has elected to measure the 15% non-controlling interest (NCI) arising from this acquisition at the proportionate

share of the fair value of the identifiable net assets at the acquisition date. Accordingly, no goodwill has been attributed to

NCI. NCI is included as a separate component of equity in the consolidated statement of financial position.

Goodwill arising on acquisition

Goodwill recognised on acquisition represents expected growth opportunities and further access to global markets.

Post acquisition performance

From 1 October 2025 to 31 December 2025, ANZ contributed $21.5m in revenue and $0.2m in net profit to the Group.

Had ANZ been consolidated from 1 January 2025, the consolidated statement of comprehensive income would have included

revenue of $57.7m and net profit of $0.8m.

61

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

F3. ACQUISITION OF AUSTRALIAN ENTITIES (CONTINUED)

Details of the FIG acquisition

Carrying

value on

Fair value on

acquisition

$000's$000's

Current assets

Cash and bank balances357357

Trade and other receivables12,78112,781

Current tax asset134134

Derivative assets2,3772,377

Inventory73,50276,407

Prepayments1,0511,051

Related party receivables5,2725,272

Non-current assets

Plant and equipment301301

Deferred tax asset2,1831,303

Right-of-use asset344377

Current liabilities

Trade and other payables(26,026)(26,026)

Contract liability(7,646)(7,646)

Derivative liabilities(66)(66)

Borrowings - current(31,693)(31,693)

Lease liability - current(88)(88)

Non-current liabilities

Borrowings - non-current(2,371)(2,371)

Lease liability - non-current(284)(289)

Net assets acquired30,12832,181

Consideration paid in cash35,859

Consideration paid in Scales Corporation Limited shares5,687

Fair value of deferred consideration23,879

Fair value of the previously held equity interest65,425

Less fair value of identifiable assets acquired and liabilities assumed(32,181)

Goodwill98,669

62

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

F3. ACQUISITION OF AUSTRALIAN ENTITIES (CONTINUED)

Details of the FIG acquisition (continued)

Fair value measurement of deferred consideration

The deferred consideration was measured at its fair value at the acquisition date, using a discount rate of 5.26%.

The discount rate is Group’s incremental borrowing rate, reflecting the time value of money, foreign exchange risk and credit risk.

The valuation was based on contractual payment terms and assumes no early settlement or default.

Future

payment

Nominal

amount

Discounted

amount

Nominal

amount

Discounted

amount

AUD 000'sAUD 000'sNZD 000'sNZD 000's

30-Sep-264,8644,6385,5555,297

30-Sep-274,8644,4105,5555,036

30-Sep-284,8644,1815,5554,775

30-Sep-294,8643,9535,5554,515

30-Sep-304,8643,7275,5554,256

Total24,32020,90927,77523,879

The deferred consideration is classified as a financial liability measured at amortised cost. Interest expense arising from

unwinding the discount is recognised in the profit or loss in the consolidated statement of comprehensive income over the payment period

using the effective interest method.

Fair value measurement of identifiable net assets acquired

Inventory acquired has been measured at the fair value, being the sales price less costs to sell. Costs to sell include the cost of

raw materials, processing, inbound and outbound freight, and other applicable sale costs.

Previously held equity interest

A gain of $23.9m was recognised as a result of measuring at fair value the 50% equity interest in FIG held prior to

the business combination. The gain is included in other income in the consolidated statement of comprehensive income

for the year ended 31 December 2025.

Goodwill arising on acquisition

Goodwill recognised on acquisition represents expected growth opportunities and further access to global markets.

Post acquisition performance

From 1 October 2025 to 31 December 2025, FIG contributed $189m in revenue and $3m in net profit to the Group.

Had FIG been consolidated from 1 January 2025, the consolidated statement of comprehensive income would have included

revenue of $525m and net profit of $10.8m.

63

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

F3. ACQUISITION OF AUSTRALIAN ENTITIES (CONTINUED)

Details of the MAP acquisition

Carrying

value on

Fair value on

acquisition

$000's$000's

Current assets

Cash and bank balances4,4934,493

Trade and other receivables7,3117,311

Derivative assets8585

Inventory15,19616,044

Prepayments510510

Non-current assets

Property, plant and equipment24,52127,855

Right-of-use asset9,75910,111

Current liabilities

Trade and other payables(6,653)(6,653)

Current tax payable(169)(169)

Derivative liabilities(169)(169)

Borrowings(16,613)(16,613)

Lease liability current(1,000)(1,000)

Non-current liabilities

Deferred tax(2,186)(3,580)

Related party loan(20,834)(23,650)

Lease liability non-current(9,222)(9,111)

Net assets acquired5,0295,464

Consideration paid in cash5,174

Fair value of deferred consideration10,551

Fair value of the previously held equity interest15,725

Less fair value of identifiable assets acquired and liabilities assumed(5,464)

Goodwill25,986

64

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

F3. ACQUISITION OF AUSTRALIAN ENTITIES (CONTINUED)

Details of the MAP acquisition (continued)

Fair value measurement of deferred consideration

The deferred consideration was measured at its fair value at the acquisition date, using a discount rate of 5.26%.

The discount rate is Group’s incremental borrowing rate, reflecting the time value of money, foreign exchange risk and credit risk.

The valuation was based on contractual payment terms and assumes no early settlement or default.

Future

payment

Nominal

amount

Discounted

amount

Nominal

amount

Discounted

amount

AUD 000'sAUD 000'sNZD 000'sNZD 000's

30-Sep-262,1562,0562,4542,340

30-Sep-272,1561,9552,4542,225

30-Sep-282,1561,8532,4542,110

30-Sep-292,1561,7522,4541,995

30-Sep-302,1561,6522,4541,881

Total10,7809,26812,27010,551

The deferred consideration is classified as a financial liability measured at amortised cost. Interest expense arising from

unwinding the discount is recognised in the profit or loss in the consolidated statement of comprehensive income over the payment period

using the effective interest method.

Fair value measurement of identifiable net assets acquired

An external valuation was obtained to determine the fair value of plant and equipment on acquisition.

Inventory acquired has been measured at the fair value, being the sales price less costs to sell. Costs to sell include the cost of

raw materials, processing, inbound and outbound freight, and other applicable sale costs.

Previously held equity interest

A gain of $13.9m was recognised as a result of measuring at fair value the 50% equity interest in MAP held prior to

the business combination. The gain is included in other income in the consolidated statement of comprehensive income

for the year ended 31 December 2025.

Goodwill arising on acquisition

Goodwill recognised on acquisition represents expected growth opportunities and further access to global markets.

Post acquisition performance

From 1 October 2025 to 31 December 2025, MAP contributed $16.9m in revenue and $0.7m in net profit to the Group.

Had MAP been consolidated from 1 January 2025, the consolidated statement of comprehensive income would have included

revenue of $64m and net profit of $2.4m.

65

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

G. OTHER

G1. CAPITAL COMMITMENTS

20252024

$000's $000's

Apple trees purchase commitments143-

Property, plant and equipment purchase commitments6623,194

G2. LEASES

The Group as a lessee

The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group recognised a right-of-use

asset and a corresponding liability with respect to all lease arrangements in which it is the lessee, except for short-term leases

(defined as leases with a lease term of twelve months or less) and leases of low value assets. For these leases, the Group

applies the practical expedient and recognises the lease payments as an operating expense on a straight-line basis over the

term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from

the lease assets are consumed.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date,

discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental

borrowing rate (IBR).

Lease payments included in the measurement of the lease liability comprise:

• fixed lease payments (including in-substance fixed payments), less any lease incentives;

• variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;

• the amount expected to be payable by the lessee under residual value guarantees;

• the exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and

• payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.

The lease liability is presented as a separate line in the consolidated statement of financial position.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the

effective interest method) and by reducing the carrying amount to reflect the lease payments made.

The Group remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:

• the lease term has changed or there is a change in the assessment of exercise of a purchase option, in which case the lease

liability is remeasured by discounting the revised lease payments using a revised discount rate;

• the lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual

value, in which case the lease liability is remeasured by discounting the revised lease payments using the initial discount rate;

• a lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease

liability is remeasured by discounting the revised lease payments using a revised discount rate.

The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before

the commencement date and any initial direct costs. They are subsequently measured at cost less accumulated depreciation

and impairment losses.

Whenever the Group incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is

located or restore the underlying asset to the condition required by the terms and conditions of the lease, a provision is

recognised and measured under NZ IAS 37Provisions, Contingent Liabilities and Contingent Assets.

66

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

G2. LEASES (CONTINUED)

Right-of-use assets are depreciated over the shorter period of either the lease term or the useful life of the underlying asset. If a

lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to

exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The

depreciation starts at the commencement date of the lease.

The right-of-use assets are presented as a separate line in the consolidated statement of financial position.

The Group applies NZ IAS 36Impairment of Assetsto determine whether a right-of-use asset is impaired and accounts for any

identified impairment loss under this standard.

Variable rents that do not depend on an index or rate are not included in the measurement of the lease liability and the

right-of-use asset. The related payments are recognised as an expense in the period in which the event or condition that triggers

those payments occurs and are included in the line "Administration and operating expenses" in the statement of

comprehensive income.

As a practical expedient, NZ IFRS 16 permits a lessee to not separate non-lease components, and instead account for any lease

and associated non-lease components as a single arrangement.

Right-of-use assets

Land and

buildings

Plant and

equipment

Office

equipment

motor and

vehiclesTotal

$000's $000's $000's $000's

Carrying Amount

Balance at 1 January 202444,2522945,02649,572

Additions17,0141272,98120,122

Lease modification(793)-(19)(812)

Depreciation expense(7,042)(302)(1,941)(9,285)

Balance at 31 December 202453,4311196,04759,597

Additions50,219206 1,04851,473

Lease terminations(415)--(415)

Depreciation expense(8,595)(180)(2,024)(10,799)

Balance at 31 December 202594,6401455,07199,856

20252024

$000's $000's

Amounts recognised in profit and loss

Depreciation expense on right-of-use assets10,7999,285

Gain on lease modification(59)(79)

Interest expense on lease liabilities4,7403,774

Expense relating to short-term leases and low-value assets1,8221,287

Lease liabilities

Current15,97113,464

Non-current97,66252,921

67

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

G2. LEASES (CONTINUED)

20252024

$000's $000's

Maturity analysis (undiscounted cash flows)

Year 115,99613,471

Year 214,88112,973

Year 313,10411,214

Year 411,7759,489

Year 510,6558,077

Onwards98,32935,946

164,74091,170

Cash outflows for leases

Interest on lease liabilities4,7403,774

Repayments of lease liabilities8,4649,075

Short-term leases and low-value asset leases1,8221,287

15,02614,136

Sale and leaseback

On 29 August 2025, the Group subsidiary Mr Apple New Zealand Limited, completed a transaction to sell and leaseback

Whakatu Coolstores.

The lease has an initial lease term of 20 years with rights of renewal for a further 15 years. The Group has recognised

a right-of-use asset from the leaseback for the initial 20 year term.

Total right-of-use assets additions recognised from the leaseback of the property amounted to $18.2 million. Proceeds from

the sale and associated lease payments are included in the statement of cash flows. A gain on sale of $0.2m from the

sale and leaseback was recognised in other income.

G3. RELATED PARTY DISCLOSURES

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 in the ordinary course of business.

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 benefits10,3588,431

Share-based payments650456

Post-employment benefits412342

11,420 9,229

68

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

G3. RELATED PARTY DISCLOSURES (CONTINUED)

As at 31 December 2025, 651,276 (31 December 2024: 827,989) shares were on issue to key management personnel in

accordance with the Share Scheme described in note D2.

During 2025, 342,705 (2024: 332,746) new Performance Share Rights were issued to key management personnel in accordance with

the PSR Scheme described in note D2.

20252024

$000's $000's

Transactions with equity accounted entities

Revenue from sale of goods-3,228

Revenue from services18,05914,364

Loss on related party loans-(1,663)

Dividends and distributions received2,6451,545

Interest received2,2191,621

Materials and services received(2,182)(7,617)

Trade receivables at balance date2,5321,563

Trade payables at balance date(51)-

Related party loans26,78829,750

The amounts above include entities that were equity accounted until 30 September 2025.

In October 2022, Meateor Group Limited along with the other joint venture partners, agreed a financing arrangement with

Meateor Australia Pty Limited for a term of 5 years. The total facility provided to Meateor Australia Pty Limited is AUD 4 million

with the interest rate on the drawdown balances charged at 5% per annum.

In July 2023 the financing arrangement with Meateor Australia Pty Limited was amended to nil interest over the term of the loan.

In September 2025, with the acquisition of the remaining 50%, Meateor Group Limited took over the joint venture partners

balance of AUD 4 million.

The loan balance has been recorded using the effective interest method.

In August 2023, a financing arrangement was agreed with Esro Petfood B.V. The total facility available to Esro Petfood B.V. is

€15m. The total drawdown at year end is €12.9m. Interest is charged on each drawdown calculated quarterly at an interest

rate of EURIBOR plus 4%. The facilities are secured and each has a term of 60 months from its initial date of utilisation.

G4. CONTINGENT LIABILITIES

There is no contingent liaibilities as at 31 December 2025 (2024: Nil).

G5. EVENTS OCCURRING AFTER BALANCE DATE

There were no events occurring subsequent to balance date which require adjustment to or disclosure in the financial

statements.

69

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

H. CORRECTION OF ERROR AND RESULTING RESTATEMENT

The Group's bearer plants are carried at fair value. The fair value is determined by the independent valuer using the discounted cash flow

method. As part of the current year's valuation, management identified certain planted areas that are on leased land, which had been omitted

from the valuation in prior years. This error related to plantings predominately in 2017 to 2020. This resulted in an understatement

of the value of the bearer plants. It was also identified that an incorrect yield input had been used for one variety in the prior years. This resulted

in an overstatement of value in bearer plants for this variety.

Accordingly, comparative figures presented in these financial statements have been restated to correct the errors.

Impact on statement of comprehensive income

2024

(increase/(decrease) in profit)

$000's

Revaluation of property, plant and equipment through profit or loss(217)

Depreciation(323)

Income tax expense151

Net impact on profit for the year(389)

Other comprehensive income

Items that will not be reclassified to profit or loss

Revaluation of apple trees2,354

Income tax relating to apple trees(659)

Net impact on other comprehensive income/loss1,695

Net impact on total comprehensive income1,306

Total comprehensive income for the year is attributable to:

Equity holders of the Company1,306

Non-controlling interests-

1,306

Impact on statement of financial position

1 Jan31 Dec

(increase/(decrease) in asset/(liability))

20242024

$000's$000's

Property, plant and equipment4,8416,655

Total assets4,8416,655

Deferred tax liabilities(1,355)(1,863)

Total liabilities(1,355)(1,863)

Net impact on equity3,4864,792

70

Scales Corporation Limited
Notes to the consolidated financial statements for the year ended 31 December 2025

H. CORRECTION OF ERROR AND RESULTING RESTATEMENT (CONTINUED)

Impact on statement of changes in equity

1 Jan31 Dec

(increase/(decrease) in equity)

20242024

$000's$000's

Reserves3,8871,695

Retained earnings(401)(389)

Attributable to owners of the Company3,4861,306

All impacts in the segment information are within the Horticulture and New Zealand segments.

Impact on Earnings per share

The Group’s basic earnings per share has changed from 21.6 cents to 21.3 cents and diluted earnings

per share has changed from 21.5 cents to 21.3 cents for the year ended 31 December 2024.

71

Independent Auditor’s Report
To the Shareholders of Scales Corporation Limited

Opinion We have audited the consolidated financial statements of Scales Corporation Limited and its

subsidiaries (the ‘Group’), which comprise the consolidated statement of financial position as

at 31 December 2025, and the consolidated statement of comprehensive income, statement of

changes in equity and statement of cash flows for the year then ended, and notes to the

consolidated financial statements, including material accounting policy information.

In our opinion, the accompanying consolidated financial statements, on pages 4 to 71, present

fairly, in all material respects, the consolidated financial position of the Group as at

31 December 2025, and its consolidated financial performance and cash flows for the year

then ended in accordance with New Zealand Equivalents to IFRS Accounting Standards (‘NZ

IFRS’) as issued by the External Reporting Board and IFRS Accounting Standards (‘IFRS’) as

issued by the International Accounting Standards Board.

Basis for opinion We conducted our audit in accordance with International Standards on Auditing (‘ISAs’) and

International Standards on Auditing (New Zealand) (‘ISAs (NZ)’). Our responsibilities under

those standards are further described in the Auditor’s Responsibilities for the Audit of the

Consolidated Financial Statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a

basis for our opinion.

We are independent of the Group in accordance with Professional and Ethical Standard 1

International Code of Ethics for Assurance Practitioners (including International Independence

Standards) (New Zealand) (‘PES 1’) issued by the New Zealand Auditing and Assurance

Standards Board and the International Ethics Standards Board for Accountants’ International

Code of Ethics for Professional Accountants (including International Independence Standards)

(‘IESBA Code’) as applicable to audits of financial statements of public interest entities. We

have also fulfilled our other ethical responsibilities in accordance with PES 1 and the IESBA

Code.

Our firm carries out other assignments for the Group in the area of taxation compliance

services and assurance procedures over the solvency certificate and selected GHG disclosures

within the Climate Statement. These services have not impaired our independence as auditor

of the Company and Group. The firm has no other relationship with, or interest in, the Company

or any of its subsidiaries.

Audit materiality

We consider materiality primarily in terms of the magnitude of misstatement in the financial

statements of the Group that in our judgement would make it probable that the economic

decisions of a reasonably knowledgeable person would be changed or influenced (the

‘quantitative’ materiality). In addition, we also assess whether other matters that come to our

attention during the audit would in our judgement change or influence the decisions of such a

person (the ‘qualitative’ materiality). We use materiality both in planning the scope of our audit

work and in evaluating the results of our work.

We determined materiality for the Group financial statements as a whole to be $4,400,000.

Key audit matters Key audit matters are those matters that, in our professional judgement, were of most

significance in our audit of the consolidated financial statements of the current period. These

matters were addressed in the context of our audit of the consolidated financial statements as

a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these

matters.

72

Key audit matter How our audit addressed the key audit matter
Valuation of Unharvested Agricultural Produce

Unharvested agricultural produce growing on bearer plants (apples), is

measured at fair value less costs to sell in accordance with NZ IAS 41

Agriculture.

The Group’s unharvested agricultural produce was valued at $ 30.6

million at balance date as described in note C2. A revaluation gain of

$2.7 million is recorded in profit or loss.

Fair value less costs to sell is calculated by the Group using a

discounted cash flow model. The model includes significant

unobservable inputs and assumptions including, for each variety, the

forecast production per hectare per annum, expected sales prices, and

risk-adjusting discount rates, as well as costs to harvest and sell.

The risk-adjusting discount rates take into account the risk of unknown

adverse events that may affect crop, harvest and/or market conditions.

The valuation of unharvested agricultural produce is considered a key

audit matter due to the level of judgement required to determine the fair

value less costs to sell.


Our procedures focused on the appropriateness of the valuation

methodology and the key assumptions applied in the internal valuation

model.

Our procedures included, amongst others:

•Holding discussions with management and considering

market information to identify factors, including

environmental/climate or market risks, that would impact the

current crop valuation;

•Assessing and challenging the reasonableness of the risk-

adjusting discount rates;

•Challenging the reasonableness of the key assumptions by

comparing the forecast production, sales

prices, and costs to

harvest and sell for the current growing season to the

approved budgets for each orchard;

•Assessing the historical accuracy of the Group’s budget

forecasts by comparing to the actual results for production

per hectare and sales prices;

•Engaging a Deloitte valuation specialist to review the

valuation model; and

•Checking the mechanical accuracy of the discounted cash

flow model.

Valuation of Apple Trees

As disclosed in note C1, the Group has apple trees valued at $53.1

million. A revaluation loss of $2.7 million is recorded through other

comprehensive income, and a revaluation gain of $1.2 million is

recorded through profit or loss (being a reversal of revaluation losses

previously recognised in profit or loss).

The Group has a policy of recording apple trees at fair value with

valuations performed with sufficient regularity that the carrying amount

at the end of a reporting period does not differ materially from their fair

value.

The fair value of the apple trees is determined by an independent

registered valuer using a combination of discounted cash flow analysis

of forecast income streams and costs from each orchard and sales

comparison approaches. For owned orchards, the fair value of orchard

land and buildings, determined using a sales comparison approach, is

deducted from the overall orchard valuation to arrive at the valuation of

the apple trees.

The discounted cash flow model uses a number of significant

unobservable inputs, in particular: production levels per hectare,

orchard gate returns (market prices), orchard costs, and discount rates.

The valuation of apple trees is considered a key audit matter due to the

significance of the assets to the Group’s consolidated statement of

financial position, and the level of judgement involved in valuing the

apple trees.

Our procedures focused on the appropriateness of the valuation

methodology and the key assumptions applied in the valuation models.

Our procedures included, amongst others:

•Evaluating the Group’s processes in respect of the

independent valuation of the apple trees including its review

of the valuation methodology and determination of the key

valuation assumptions;

•Engaging a Deloitte valuation specialist to consider whether

the valuation methods applied and the discount rate used in

the orchard valuation calculations were reasonable;

•Assessing the competence, objectivity and integrity of the

Group’s independent registered valuer. This included

assessing the valuer’s professional qualifications, experience

and independence. It also included meeting with the valuer

to understand the valuation process adopted and to identify

and challenge the critical judgement areas in the valuation,

including identification of appropriate properties used for the

sales comparison approach

;

•Assessing the valuation methodology for consistency with the

prior year valuation and determining whether any changes to

the methodology were appropriate;

•Checking the mechanical accuracy of the discounted cash

flow (‘DCF’) models on a sample basis;

•Challenging the reasonableness of the key assumptions

applied in the DCF models by comparing them to the prior

year valuation, the Group’s internal data and current market

evidence. We focused on the assumptions relating to

production levels per hectare, orchard gate returns (market

prices), orchard costs, and discount rates;

oWe reconciled the planted hectares for each

orchard from the Group’s internal records to the

planted hectares used in the valuation models,

and investigated material changes in planted areas

from the prior year to the Group’s development

plans;

oOn a sample basis, which included selecting a

combination of existing and new varieties:

oWe tested estimated production levels

per hectare by comparing the

production levels per hectare to internal

production data for the season;

oWe tested the orchard gate returns by

73

Key audit matter How our audit addressed the key audit matter
comparing these to actual sales returns

received during the previous year;

oWe challenged orchard costs by

comparing orchard costs to the prior

year valuation and actual costs

incurred; and

oWe challenged the discount rates by

comparing them with prior year

valuation discount rates and considering

the risks associated with the orchards.

•Assessing the appropriateness of the disclosures relating to

the valuation of the apple trees, including in relation to the

prior period restatement as disclosed in note H.

Step acquisitions of Meateor Australia Pty Limited, ANZ

Exports Pty Limited and FI Group Holding Pty Limited

On 30 September 2025, the Group obtained control of Meateor

Australia Pty Limited (MAP) and its subsidiary, FI Group Holding Pty

Limited (FIG) and its subsidiaries and ANZ Exports Pty Limited (ANZ) by

purchasing additional equity interests in these companies. The total fair

value of the consideration for the acquisitions was $84.7 million, which

included cash paid at acquisition date, deferred cash payments, and

shares in Scales Corporation Limited. As a result of these transactions,

the Group now owns 100% of the shares in MAP and FIG and 85% of the

shares in ANZ. These entities were previously treated as joint ventures

and accounted for using the equity method. The transactions are

treated as step acquisitions under NZ IFRS 3 Business Combinations,

which resulted in the Group recording a $40.3 million gain through profit

or loss on revaluation of the previously held interests. Information

about each of these business combinations is disclosed in note F3 and

information about the investments previously held in each subsidiary is

disclosed in note C3.

The Group has not yet completed the process of identifying and valuing

the intangible assets acquired in the business combinations. The

intangible assets will be recognised and accounted for separately from

goodwill (as appropriate) when this assessment is complete, within the

measurement period of one year from the date of acquisition. The

Group has therefore reported provisional goodwill of $129.0 million.

We have included the determination of the fair values of the assets and

liabilities acquired and the accounting for the step acquisitions as a key

audit matter due to their significance to the financial statements and

the level of judgement involved in assessing the fair values of the assets

and liabilities acquired and the purchase price allocation.

Our procedures focused on the appropriateness of the accounting

applied to the transactions and the fair value of the assets and liabilities

acquired.

Our procedures included, amongst others:

•Assessing management’s accounting treatment for the step

acquisitions of the additional investments in MAP, FIG and

ANZ;

•Obtaining the sale and purchase agreements and related

documents to corroborate the assets and liabilities acquired;

•Confirming the fair value of the consideration paid, including

deferred consideration;

•Considering the appropriateness of the accounting for the

acquisition balance sheets, including the provisional

measurement of goodwill;

•Obtaining management’s independent valuations of assets

and liabilities acquired, except for intangible assets, for

which the valuations are not yet complete.

•Assessing the competence, objectivity and integrity of the

Group’s independent registered valuer. This included

assessing the valuer’s professional qualifications, experience

and independence. It also included meeting with the valuer

to understand the valuation process adopted and to identify

and challenge the critical judgement areas in the valuation;

•Obtaining management’s purchase price allocations and

reperforming the provisional calculations of the goodwill

arising from the business combination transactions;

•Considering the judgements applied by the Group in

determining whether there was any impairment of goodwill

arising from the acquisitions under NZ IAS 36 Impairment of

Assets; and

•Assessing the adequacy of the financial statement

disclosures.

74

Other information
The directors are responsible on behalf of the Group for the other information. The other

information comprises the information in the Annual Report that accompanies the

consolidated financial statements and the audit report and the information in the Climate

Statement. The Annual Report and Climate Statement are expected to be made available to us

after the date of this auditor’s report.

Our opinion on the consolidated financial statements does not cover the other information and

we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information identified above when it becomes available

and consider whether the other information is materially inconsistent with the consolidated

financial statements or our knowledge obtained in the audit or otherwise appears to be

materially misstated.

When we read the other information in the Annual Report and Climate Statement, if we

conclude that there is a material misstatement therein, we are required to communicate the

matter to the directors and consider further appropriate actions.

Directors’ responsibilities for

the consolidated financial

statements

The directors are responsible on behalf of the Group for the preparation and fair presentation of

the consolidated financial statements in accordance with NZ IFRS and IFRS, and for such

internal control as the directors determine is necessary to enable the preparation of

consolidated financial statements that are free from material misstatement, whether due to

fraud or error.

In preparing the consolidated financial statements, the directors are responsible on behalf of

the Group for assessing the Group’s ability to continue as a going concern, disclosing, as

applicable, matters related to going concern and using the going concern basis of accounting

unless the directors either intend to liquidate the Group or to cease operations, or have no

realistic alternative but to do so.

Auditor’s responsibilities for the

audit of the consolidated

financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial

statements as a whole are free from material misstatement, whether due to fraud or error, and

to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of

assurance, but is not a guarantee that an audit conducted in accordance with ISAs and ISAs

(NZ) will always detect a material misstatement when it exists. Misstatements can arise from

fraud or error and are considered material if, individually or in the aggregate, they could

reasonably be expected to influence the economic decisions of users taken on the basis of

these consolidated financial statements.

A further description of our responsibilities for the audit of the consolidated financial

statements is located on the External Reporting Board’s website at:

https://www.xrb.govt.nz/standards/assurance-standards/auditors-responsibilities/audit-

report-1-1/

This description forms part of our auditor’s report.

Restriction on use This report is made solely to the Company’s shareholders, as a body. Our audit has been

undertaken so that we might state to the Company’s shareholders those matters we are

required to state to them in an auditor’s report and for no other purpose. To the fullest extent

permitted by law, we do not accept or assume responsibility to anyone other than the

Company’s shareholders as a body, for our audit work, for this report, or for the opinions we

have formed.

Nicole Dring, Partner

for Deloitte Limited

Christchurch, New Zealand

24 February 2026

75

---

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 12 months to 31 December 2025

Previous Reporting Period 12 months to 31 December 2024

Currency NZD

Amount (000s) Percentage change

Revenue from continuing

operations

$899,949 54%

Total Revenue $899,949 54%

Net profit/(loss) from

continuing operations

$100,988 233%

Total net profit/(loss) $100,988 233%

Interim/Final Dividend

Amount per Quoted Equity

Security

Not Applicable. Any final dividend in respect of FY25 is

expected to be declared in May 2026

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

$1.98 $2.40

A brief explanation of any of

the figures above necessary

to enable the figures to be

understood

Note that FY24 comparatives are based on restated financial

statements. Please refer to the attached reports for commentary

and audited consolidated 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


25/02/2026


Audited financial statements accompany this announcement.

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.