2025 Annual Report

Scales
Corporation Limited
Annual Report 2025

An outstanding year
At a time when international markets are facing
unprecedented change and geopolitical tension,
Scales delivered outstanding results for the 2025
year. This was a credit to our teams, who executed
Group and divisional strategies as well as delivering
operational excellence. This resulted in record
earnings across all Group measures.
We continued to make excellent progress on our
growth strategy, increasing our investment in 4
of our Global Proteins joint venture businesses.
Successful integration of the Bostock orchards that
were acquired in 2024 was a key component of our
exceptional Horticulture result as it allowed us to
fast-track our long-term strategy of investing in apple
varieties targeted to the Asia & Middle East markets.
We continued to advance our sustainability goals
and our third standalone Climate Statement will
be released in April 2026 to provide details of our
progress.
As ever, the Group and its results would not be what
it is without the commitment and enthusiasm of each
Scales team member. We are fortunate to have such
a dedicated workforce, with each of them embracing
the Scales' culture and delivering exceptional results.
Welcome to Scales' Annual Report for our 114th year of trading.
Scales Corporation Limited
02 / Introduction

Contents
02
Introduction
04
Key 2025 Highlights
06
Managing Director and Chair’s Report
16
Sustainability Report
26
Divisional Overview
46
Leadership Profiles
50
Financial Statements
104
Independent Auditor’s Report
108
Corporate Governance
129
Director Disclosures
133
Glossary
135
Directory
Netherlands
USA
Australia
New Zealand
Logistics
Air & sea freight
Horticulture
Vertically integrated apple
grower, packer & marketer
Juice manufacturer
Apple marketer
Global Proteins
Petfood ingredient procurers,
processors & marketers
Edible protein exporter
INTERNATIONAL GROUP
Introduction / 03
Annual Report - Year Ended 31 December 2025

Key Highlights
Scales Corporation Limited
04 / Key Highlights

Revenue
$899.9m
↑ (2024: $584.6m)
Earnings per Share
70 .7c
↑ (2024 (restated): 21.3c)
Underlying NPAT
$7 7. 6 m
↑ (2024 (restated): $53.4m)
NPAT Attributable
to Shareholders
$101.0m
↑ (2024 (restated): $30.3m)
Return on
Capital Employed
14.6%
↑ (2024 (restated): 14.3%)
Underlying EBITDA
$ 1 3 7. 6 m
↑ (2024 (restated): $91.7m)
Underlying NPAT
Attributable to Shareholders
$61.8m
↑ (2024 (restated): $34.1m)
Underlying
Earnings per Share
43.3c
↑ (2024 (restated): 24.0c)
Net Debt
$84.1m
↓ (2024: net cash $12.5m)
N PAT
$ 1 1 7.7m
↑ (2024 (restated): $49.6m)
Dividends paid¹ per Share
15.0c
↑ (2024: 8 .5c)
6.5m
litres of juice sold
↓ (2024: 7.8m litres)
165,760 MT
of petfood ingredients sold
2
↑ (2024: 152,149 MT)
120,673 MT
of edible proteins sold
2
↑ (2024: 109,742 MT)
5.30m
TCEs of all apples exported
↑ (2024: 4.13m)
3.68m
TCEs of own-grown
apples exported
↑ (2024: 3.03m)
31,468
TEUs of ocean
freight managed
↑ (2024: 30,068 TEUs)
13 ,769
tonnes of airfreight
managed
↑ (2024: 7,615 tonnes)
1
Dividends paid in 2025 relate to FY24
2
Includes 100 per cent of volumes from relevant businesses, i.e. total volumes controlled directly and indirectly by Global Proteins
Key Highlights / 05
Annual Report - Year Ended 31 December 2025

Managing Director
and Chair’s Report
Scales Corporation Limited
06 / Managing Director and Chair's Report

1
Directors and management use non-GAAP (Underlying) profit measures when
discussing financial performance in this document. The Directors and management
believe that these profit measures provide meaningful information that is helpful
to investors and give them a better understanding of a company’s financial
performance when presented in addition to GAAP (NZ IFRS) information. Underlying
profit measures are used internally to evaluate performance of our divisions,
establish operational goals and to allocate resources. They also represent some
of the profit measures required by Scales’ debt providers. Non-GAAP (Underlying)
profit measures are not prepared in accordance with NZ IFRS and are not uniformly
defined, therefore the non-GAAP profit measures reported in this document may
not be comparable with those that other entities report and should not be viewed
in isolation or considered as a substitute for GAAP (NZ IFRS) measures reported
by Scales. Underlying profit measures were not subject to an audit or review.
Underlying NPAT and Underlying EBITDA are shown before the deduction of share
of Non-Controlling Interests. A full reconciliation between Underlying and NZ IFRS
measures is provided on pages 40 to 43.
2025
$000's
2024
$000’s
(Restated)
Variance

Revenue899,949 584,627 54%
EBITDA169,862 87,876 93%
Underlying EBITDA137,628 91,704 50%
N PAT1 1 7, 6 9 849,648 137%
Underlying NPAT7 7, 5 9 4 53,369 45%
NPAT Attributable to
Shareholders
100,98830,337 233%
Underlying NPAT
Attributable to
Shareholders
61,834 34,058 82%
On behalf of the Board, we are delighted to
present Scales’ Annual Report for the year
ended 31 December 2025 with Net Profit
After Tax (NPAT) of $117.7 million (2024
(restated): $49.6 million). NPAT Attributable to
Shareholders was $101.0 million, up significantly
on last year (2024 (restated): $30.3 million).
The Group generated revenue of $899.9 million,
up 54 per cent on the previous year (2024:
$584.6 million).
We generated record results across all of our
Underlying
1
earnings measures, with Underlying
NPAT Attributable to Shareholders of $61.8 million
(2024 (restated): $34.1 million), Underlying NPAT
of $77.6 million (2024 (restated): $53.4 million)
and Underlying EBITDA of $137.6 million (2024
(restated): $91.7 million). These results included
positive impacts from the increased shareholdings
in our joint venture businesses.
Underlying EBITDA
20252021202220232024
(Restated)
$ 1 3 7. 6 m
$7 7. 9 m
$67.5m
$91.7m
$73.8m
The graphs below show the Underlying NPAT
Attributable to Shareholders and Underlying
EBITDA trend for a 5-year period.
20212022202320252024
(Restated)
$61.8m
$ 2 7. 6 m
$19.0m
$34.1m
$29.8m
Record results across all earnings measures
Overview
Underlying NPAT
Attributable to Shareholders
Andy BorlandMike Petersen
Managing Director and Chair's Report / 07
Annual Report - Year Ended 31 December 2025

¹ Compounded annual returns are calculated using share
price movements and net dividends paid
M&A Transactions
We continued to progress our growth strategy during 2025,
increasing ownership in 4 of our joint venture businesses.
These are summarised as follows.
On 16 April 2025, we announced an increased investment in
Shelby JV LLC (Shelby) from 60 per cent to 67.5 per cent. The
cost of this investment was USD24.4 million.
Shelby’s performance has been fundamental to Scales’
success in recent years, with earnings growth since our initial
investment materially exceeding expectations. We believe
the various initiatives that are in place in this business will
contribute to our Global Proteins' targets.
On 30 September 2025, we increased our investments in:
• Meateor Australia Pty Limited (Meateor Australia) from 50
per cent to 100 per cent
• FI Group Holdings Pty Limited (Fayman International) from
50 per cent to 100 per cent
• ANZ Exports Pty Limited (ANZ Exports) from 42.5 per cent
to 85 per cent
The total purchase price for these investments was
AUD91.05 million.
Meateor Australia’s progress from start-up to full production
has been extremely pleasing. The Australian market is also of
high strategic importance and this increased investment will
allow us to continue to explore growth opportunities.
Fayman International and ANZ Exports have exceeded our
initial expectations and play an important role in the edible
proteins sector, with a focus on Australian exports. They
are currently capitalising on the strong global beef market,
with Australia being a key world-wide supplier. The strong
connections these businesses have to the Australian supply
network also assist Meateor Australia.
These acquisitions reflect Global Proteins’ divisional ambition
of increasing our joint venture shareholdings over time and,
as a result of these investments, the Global Proteins FY27
Underlying EBITDA target has increased from $70 million to
$85 million.
Shareholder Returns
We continue to be conscious of the long-term return to
our shareholders. Shareholders who invested in our IPO
in July 2014 will have achieved a 15 per cent compounded
annual return
1
on funds invested to the end of February
2026. By comparison, an investment in the S&P NZX50
would have delivered a 9 per cent compounded annual
return
1
on funds invested over the same period.
Strategy
Scales’ Mission
To be the foremost investor in, and grower of, global
agribusinesses by leveraging our unique insights,
experience and access to collaborative synergies.
Scales’ Long-Term Goal
To generate a long-run average 12.5 per cent ROCE
across the portfolio.
Corporate and Competitive
Strategies
Our investment pillars determine our portfolio and capital
allocation across 3 key divisions. While all divisions have
different business models, we are able to leverage our
knowledge, partnerships and Group synergies to create
competitive advantages and generate sustainable value
for our stakeholders.
Scales Corporation Limited
08 / Managing Director and Chair's Report

Mission
+
To be the foremost investor in, and grower of, global agribusinesses by leveraging our unique insights,
experience and access to collaborative synergies
Goal
+
12.5% ROCE
People and
Partnerships
+
People first approach
+
Strong partnerships
across the value chain
+
Leverage our internal
capability and skills
Sustainable Growth
+
Sectors/businesses that
align to long-term trends
+
Businesses that are
protecting and preserving
their resources
+
Diversification of
customers/markets/products
Operational
Excellence
+
Ability to add value
through innovation and
efficiency
+
Consistent quality and
service delivery through
knowledge, location and
technology
Customer
Focused Innovation
+
Product leadership -
development of new
products
+
Customer intimacy -
integrated business
planning and customisation
to their specific needs
Product
+
Investment in new petfood
ingredient products
+
Develop broader species
mix in petfood ingredients
+
Investment in new plant
varieties
+
Redevelopment to
position variety mix
towards growth markets
Market/Channel
+
Develop integrated
channels and business
plans with our petfood
customers
+
Enter new markets for
our petfood ingredients
+
Continue to develop
Mr Apple’s brand/sales
channels across Asia
markets
Infrastructure/Systems
+
Investment in new
ERP systems
+
Continual assessment
of orchard/post-harvest
location and infrastructure
+
Investment in new
processing technology/
automation (all divisions)
Resources
+
Develop decarbonisation
roadmaps (all divisions)
+
Improve water
efficiencies (all divisions)
+
Improve orchard
practices to reduce
inputs (Mr Apple)
+
Develop a Group-wide
people strategy
Global ProteinsHorticultureLogistics
Portfolio & Capital Allocation
Investment Pillars
Competitive Strategy
Strategic Update
The transactions undertaken during 2024 and 2025 were both financially and strategically aligned to our objectives. We have been
able to fast-track our Premium variety mix in Horticulture and also allow greater coordination across sales, marketing, product
development and systems through the increased ownership in our Global Proteins joint ventures.
Additionally, our newly established fish and poultry joint venture in the US will provide a low risk, low capital entry into these new protein
markets, allowing us to build our knowledge of both the supplier and customer base.
We have reset our Global Proteins target to $85 million Underlying EBITDA by 2027, which recognises the consolidation of Meateor
Australia, Fayman International and ANZ Exports.
We remain conservative in our approach to capital structure, and we will continue to review our balance sheet position in line with the
pipeline of opportunities that are being assessed.
Managing Director and Chair's Report / 09
Annual Report - Year Ended 31 December 2025

Specific Strategic Targets
Ta r g e tStatus
Group
Financial and operational
• Maintain financial returns in line with, or above,
industry returns
• Continue to seek acquisitive and organic growth
to expand the business
Excellent progress
• Increased investments made in Shelby, Meateor Australia, Fayman International
and ANZ Exports
• Other acquisition and internal growth opportunities regularly reviewed
Shareholder returns
• Continue to provide shareholders with an
attractive yield on dividends
• Deliver capital gains and shareholder liquidity
through careful strategic execution
• Deliver a Group ROCE in excess of 12.5 per cent
Excellent progress
• Interim dividend of 12.5 cents per share paid in January 2026, with second
instalment to be reviewed and advised on in early May 2026
• Group ROCE of 14.6 per cent, above Group target
Sustainability
• Develop Group and divisional sustainability
strategies, including clear goals and targets
• Further develop and evolve our reporting
and measuring of key sustainability aspects
affecting Scales’ businesses
Good progress
• Third standalone Climate Statement to be released in April 2026
• Completed a refreshed double materiality assessment to understand the
current priorities of our stakeholders
• Continued delivery of Mr Apple’s 5-year people strategy
• Advanced regenerative orchard trials and targeted environmental and
energy efficiency improvements
Global Proteins
Increase scale and expand
offering
• Reach $85 million of EBITDA by 2027
• Review strategic initiatives and consider organic
and acquisition opportunities to increase
divisional scale
• Increase global presence
Excellent progress
• Increased investments in Shelby, Meateor Australia, Fayman International and ANZ
Exports
• Increased volumes through our new toll processing plant in the United States
• Commissioned our new processing facility in the Netherlands
• Commissioned a second new in-plant collection and cooling system in the United
States, ahead of schedule
• Meateor Australia traded ahead of forecast and was significantly profitable
• Established a new joint venture focusing on fish and poultry in the United States
• Ongoing global growth opportunities being actively investigated
Horticulture
Operational and branding
• Continue to increase market penetration into
Asia
• Continue to develop the Mr Apple brand,
particularly within our key markets of Asia and
the Middle East
• Acquire and/or develop new Plant Variety Rights
(PVRs) to meet emerging needs
• Redevelop lower-performing orchards and
varieties into higher value crops
Excellent progress
• Successful amalgamation of the Bostock orchards that were acquired in FY24
• Increased proportion of sales made to the Asia and Middle East markets
• Increased proportion of Premium apple total export sales volumes
• Significant growth in sales of Dazzle™ and Posy™
• Continued investment in marketing and brand presence for Mr Apple and Premium
varieties, particularly across China and other key Asia markets
• Ongoing development of new Premium PVRs
Logistics
Expand logistics offerings
• Develop scale to utilise the expertise and
capacity within the team
Excellent progress
• Record result achieved driven by a significant increase in volumes
• Benefitted from being both an in-house and external logistics provider
Scales Corporation Limited
10 / Managing Director and Chair's Report
We have continued to make good progress with our strategic initiatives across all 3 divisions. In addition to our M&A activities in the Global
Proteins division, we have executed significant projects including commissioning a second new in-plant collection and cooling system
in the United States as well as a new processing facility in the Netherlands. Additionally, in Horticulture, we are actively assessing new
Premium apple varieties for future commercialisation.

Sustainability
Scales is focused on:
• Our broader obligations as a responsible corporate citizen
• The desire of our stakeholders to receive clear reporting
on our environmental footprint and sustainability
improvements
• Our ability to better identify and manage all risks (as well
as opportunities) facing the business and align our future
strategic plans
Sustainability continues to be a key focus for us and
during 2025 we completed a refreshed double materiality
assessment to allow us to understand our stakeholders’
priorities.
In terms of people, we undertook an engagement survey
for all our New Zealand businesses with our plan being
to roll this out globally in 2027. We continued to integrate
health, safety and wellbeing into our businesses and have
developed an improvement roadmap covering the next few
years.
We have also progressed many of our environmental
projects. During the year, an assurance exercise was
undertaken to confirm our Scope 1 (direct) and Scope 2
(indirect) greenhouse gas emissions data, and analysis of
Scope 3 (raw material) emissions was progressed. And
our regenerative planting trials i.e. planting trials that aim
to restore soil health, increase biodiversity and enhance
ecosystem function, continued at Mr Apple and, pleasingly,
these show early indications of improved soil health and
fruit quality.
Our summary Sustainability report is presented in the
next section, and we will be publishing our third standalone
Climate Statement in April this year. We hope that you will
find time to read both these reports.
Scales’ Team
At its peak, Scales has over 1,500 dedicated staff members
working across the world. These individuals come together
to form teams within our global organisation, working to
make Scales the best that it can be. It is those people who
make Scales successful with their passion, expertise and
dedication and each person plays a crucial role in our
success.
Providing a safe workplace is central to our ethos and we
work hard to nurture and maintain a culture of safety at
work. This is not only for the protection of our workers, but
also for our communities, customers, suppliers and other
stakeholders.
We also value the unique contributions of employees no
matter their background, experience and perspectives,
and we endeavour to foster an inclusive culture where
everyone can feel welcome. It is extremely important to
us that everyone feels respected, valued, included and
encouraged to contribute, and confident that they belong.
Our people are the heart of our business and allow us to
achieve the successful delivery of our strategy. On behalf of
the Board, we would like to thank all our people across the
world for their ongoing contribution to the success of the
Group.
Appropriately Incentivising
our Team
Compensation of the Scales management team continues to
link remuneration with the delivery of the strategies as directed
by the Board, drive a performance-led culture and connect the
long-term sustainable success of the business with our values.
It also aligns to retaining and developing high-performing team
members as well as promoting positive personal performance.
We have therefore maintained a strong incentive-based
remuneration scheme, with shorter term incentives being
balanced alongside long-term business and alignment of
shareholder interests. Our remuneration philosophy and
analysis of executive remuneration is detailed more fully in the
Corporate Governance Statement on pages 108 to 128.
Board Succession
Alan Isaac
At the 2024 Annual Shareholders’
Meeting, Alan Isaac signalled his
intention to retire from the Scales Board
prior to the end of his current term.
Having secured a replacement Director,
Alan retired in October last year.
Alan was a major contributor to Scales’
governance programme, serving on the Board for over 11
years. Not only was he Chair of the Audit & Risk Management
Committee, but he also chaired the Due Diligence Committee
as part of Scales’ listing process. With his accounting and
finance background, he provided excellent financial knowledge
and counsel. We would like to recognise Alan’s significant
contribution to the Board and thank him for his unwavering
support.
In Alan’s place, we were pleased to welcome Paul Munro to
the Board in October last year. Paul also has a significant
accounting and finance background, as well as extensive
governance experience from a wide range of public and private
entities.
Management Team
Succession
Steve Kennelly
In February 2026 we announced that
Steve Kennelly is stepping down as
Chief Financial Officer (CFO) in May of
this year. Steve has been with Scales
since 1993 in a variety of accounting and
finance roles, being appointed as CFO
in 2011. Steve will be taking up a new role
as Company Secretary.
We are pleased to welcome Ben Washington in Steve’s place.
Ben will start in June, joining us from KMD Brands where he has
held several senior leadership positions, most recently as CFO
of Kathmandu.
Managing Director and Chair's Report / 11
Annual Report - Year Ended 31 December 2025

Income Statement
2025
$000's
2024
$000's
(Restated)
Revenue899,949584,627
Underlying EBITDA1 3 7, 6 2 891,704
Underlying EBIT108,43868,928
Underlying NPAT77,59453,369
After tax impact of:
Non-cash, NZ IFRS and other adjustments40,104(3 ,721)
N PAT117, 6 9 849,648
Underlying NPAT Attributable to Shareholders61,83434,058
NPAT Attributable to Shareholders100,98830,337
Capital employed74 0 , 2 8 0504,471
Return on capital employed14.6%14.3%
Group Financials
Summary
Scales delivered outstanding results for the year ended 31 December 2025 with record results across
all performance measures:
• Reported NPAT Attributable to Shareholders of $101.0 million
• Underlying NPAT Attributable to Shareholders of $61.8 million
• Underlying EBITDA of $137.6 million
• Revenue of $899.9 million
Additional detail of the performance of each division is provided in the Divisional Overview section.
Scales Corporation Limited
12 / Managing Director and Chair's Report

Capital Management
Return on Capital Employed (ROCE) is a measure of how efficiently we are generating a return on our assets and continues to be an
important performance metric for each division and the Group as a whole. It is also key to how we monitor the performance of our
portfolio and make decisions around capital expenditure. Prior to committing to an investment in assets, we need to be confident that we
will generate a return that meets or exceeds our targets.
Group ROCE exceeded our target of 12.5 per cent, with ROCE targets for each division varying depending on their specific asset and risk
profiles.
20252024
(Restated)
ROCE
Global Proteins19.8%45.3%
Horticulture12.3%5.4%
Logistics62.6%54.1%
Group14.6%14.3%
Ta r g e t12.5%12.5%
Group capital employed increased compared to last year due to increased investment in our Global Proteins joint venture businesses.
Scales’ Reported basic earnings per share
1
for the year ended 31 December 2025 was 70.7 cents per share (2024 (restated):
21.3 cents per share). Scales’ Underlying basic earnings per share for the year ended 31 December 2025 was 43.3 cents per share
(2024 (restated): 24.0 cents per share).
Financing
Average Net Debt for the year was $75.8 million (2024: $34.7 million), an increase of $41.1 million, with the increase primarily due to
the investment in Shelby, Meateor Australia, Fayman International and ANZ Exports. At the end of the year our Net Debt position was
$84.1 million (2024: Net Cash $12.5 million).
Hedging Strategy
As an exporter, we continue to have significant exposure to foreign exchange movements. This is most prevalent in Mr Apple, with our
Global Proteins and Logistics divisions also affected. We also have exposure to movements in interest rates, both on borrowings and
deposits.
Scales has a Board approved Treasury Management Policy, which governs how all foreign exchange, interest rate and related activities
are conducted. This policy is reviewed biennially.
Under this policy we may take foreign exchange cover for Mr Apple for up to 5 years forward using a variety of foreign exchange
instruments (including options and forward contracts). Scales maintains a blend of instruments. In addition, Scales manages the cover
levels for seasonal and market variations for future years.
We continue to have a natural hedge covering some of our US dollar exposure as international shipping is payable in US dollars. We
take cover on the remaining expected net US dollar and other currency exposures.
In general, Global Proteins and Logistics take foreign currency cover once exposures have been confirmed.
Euros 7%
Canadian dollars 4%
Japanese yen 5%
US dollars 79%
British pounds 5%
¹ Based on the weighted average number of ordinary shares.
Foreign currency
In 2025, Mr Apple’s net foreign currency
exposures were as shown below.
The average conversion rate of Mr Apple’s main foreign
currency exposures since 2022 were as noted below.
2025202420232022
USD.6196.6364.6515.6588
EUR.5318.5414.5452.5449
GBP.4796.4770.4912.4962
CAD.8160.8468.8407.8597
JPY86.06N /AN /AN /A
Managing Director and Chair's Report / 13
Annual Report - Year Ended 31 December 2025

The hedging position for Mr Apple’s 2 main foreign currency exposures, as at 15 February 2026, was:
20262027202820292030
USD
% cover of expected exposure97%82%67%60%40%
Average rate of cover.5872.5908.5910.5916.5884
EUR
% cover of expected exposure100%95%88%56%21%
Average rate of cover.5212.5047.5132.5067. 474 2
Interest rates
In addition, we take out interest rate swaps and forward rate agreements, which provide some certainty on interest costs on Scales’
long-term and short-term borrowings. We have historically funded offshore investments via term debt in the currency of the investment.
This provides an investment hedge. As at 31 December 2025 our US dollar term debt was 42 per cent hedged by interest rate swaps.
Dividend
A final 2024 partially imputed cash dividend of 7.75 cents per share (a gross amount of 9.26 cents per share) was paid on 11 July 2025.
Together with a fully imputed 2024 interim dividend of 7.25 cents per share (a gross amount of 10.07 cents per share) that was paid
on 17 January 2025, this brought the annual dividends for 2024 to a total of 15.00 cents per share (a gross amount of 19.33 cents per
share).
A partially imputed initial interim 2025 cash dividend of 12.50 cents per share (a gross amount of 14.93 cents per share) was declared
on 3 December 2025 and paid on 23 January 2026. We will review, and advise on, a final dividend for 2025 in early May 2026.
As always, any dividend is subject to Board approval. It is standard practice for the Directors to consider all aspects of the Group’s
performance and financial position prior to declaring any dividend. Total dividends are expected to be split approximately evenly
between interim and final, and to be between 50 per cent and 75 per cent of Underlying NPAT Attributable to Shareholders.
Capital Expenditure
Capital expenditure in 2025 was $21.6 million, an increase of $2.6 million on the prior year (2024: $19.0 million).
Considerable investment was made in margin improvement projects at Mr Apple including the ongoing orchard redevelopment into
Premium volumes and a new high-pressure apple washer at the Whakatu packhouse. Other material capital expenditure related to an
upgrade to the Recognised Seasonal Employer (RSE) accommodation at Mr Apple and capital works at Shelby for its second in-plant
collection and cooling system.
2025
$000's
2024
$000's
Operational capital expenditure
Global Proteins6,2781,606
Horticulture8,2384,401
Logistics213938
Other2619
Total operational capital expenditure14,7556,964
Margin improvement capital expenditure
Horticulture6,8306,951
Total margin improvement capital expenditure6,8306,951
Growth capital expenditure
Global Proteins-4,066
Total growth capital expenditure-4,066
Cyclone capital expenditure
Horticulture-1,060
Total Cyclone expenditure-1,060
Total capital expenditure21,58519,042
Scales Corporation Limited
14 / Managing Director and Chair's Report

Outlook
A strong performance across all of our divisions delivered record Group 2025 earnings for Scales. The Group’s financial position
allows for further investment opportunities and we continue to explore new growth opportunities within each division.
Whilst geopolitical uncertainty is expected to continue through 2026, we expect Global Proteins to perform strongly and to
continue to realise the benefits of its increased investments.
Within Horticulture, a crop of around 3.5 million TCEs is forecast for Mr Apple, with picking and packing progressing for the 2026
season. Pricing is expected to be positive, impacted by a number of factors including more favourable foreign exchange rates.
Profruit continues to experience positive demand.
We also expect Logistics to contribute positively, both financially and strategically, as we continue to navigate volatility in some
trade lanes.
On behalf of the Board, we would like to thank all our management and staff, fellow Directors, suppliers, customers and other
stakeholders for their hard work, support and commitment in our 114th year of trading.
Mike Petersen
Chair
20 March 2026
Andy Borland
Managing Director
Managing Director and Chair's Report / 15
Annual Report - Year Ended 31 December 2025

Sustainability
Report
Scales Corporation Limited
16 / Sustainability Report

1
Owned/leased
Scales' FY25 Sustainability Report
2025 was a year of consolidation and progress for Scales as the Group
continued to strengthen operations and embed lessons from the significant
disruption experienced since 2020. While the impacts of severe weather
events, including Cyclone Gabrielle, extended across multiple seasons, the
focus during 2025 was on restoring stability, supporting our people and
reinforcing the resilience of our operations. Across all divisions, teams remained
focused on building strong foundations for sustainable long-term performance.
During the year, Scales continued to evolve its sustainability approach, with
a particular emphasis on understanding how expectations and priorities
have shifted following COVID, prolonged supply chain disruption and recent
climate-related events. A refreshed materiality assessment was undertaken
to better understand the views of customers, investors, employees and other
stakeholders, and to ensure the Group’s Environmental, Social and Governance
(ESG) priorities remain aligned with a rapidly changing operating environment.
The insights from this work are helping to shape decision making and inform the
next phase of Scales’ sustainability journey.
Looking ahead, 2026 will be a year of strengthening Scales’ broader ESG
framework, with a focus on governance, social outcomes and
long-term value creation alongside environmental considerations. As part of
this work, the Group is preparing to develop a sustainability strategy that will
provide clearer direction and structure, including the pathway toward emissions
measurement and reduction targets from 2027 and beyond. To support
this transition Scales is assessing software solutions to improve the quality,
consistency and efficiency of ESG and emissions data collection and reporting.
Whilst legislative changes are expected to limit mandatory preparation of
climate statements to entities with market capitalisation over $1 billion, those
changes are not yet in force. Accordingly, Scales has prepared its FY25
Climate Statements having regard to the climate-related disclosure regime as
it currently applies, and to the Financial Markets Authority’s stated “no-action”
approach pending legislative change. Scales expects to publish its third Climate
Statement in April 2026.
More information is available at: https://scalescorporation.co.nz/sustainability
637
Permanent
staff members
49 years
Longest serving
employee
41
Operational sites
1
>1,000
RSE workers
34%
Permanent female staff
36%
Women in senior
leadership and
management
3
rd
Climate Statement
completed
Ye a r 3
Regenerative planting
trial across 2 Mr Apple
orchards
Scope 1 & 2
Emissions
Limited assurance
obtained
Sustainability Report / 17
Annual Report - Year Ended 31 December 2025

Materiality
In 2025, Scales completed a comprehensive materiality
assessment to ensure our sustainability strategy focuses on
what matters most to stakeholders and what is most critical
to the business over the 2025 – 2030 period, building on the
previous 2021 assessment.
The assessment covered Horticulture, Logistics and Global
Proteins across New Zealand and key offshore markets, using a
double materiality lens:
• Impact materiality: Scales’ effects on people and the
environment across the value chain
• Financial materiality: impacts on revenue, costs, assets,
liabilities and reputation
The process was informed by the Global Reporting Initiative
(GRI), European Sustainability Reporting Standards (ESRS)
and International Financial Reporting Standards (IFRS)
Sustainability Disclosure Standards.
2025 Highly Material Topics
• Human rights, labour practices and modern slavery
• Corporate governance
• Product quality and safety
• Ethical supply chain
• Market access, compliance and regulation
• Health, safety and wellbeing
What Stakeholders Told Us
External stakeholders emphasised dignity and protection in the
workforce, ethical procurement, strong product safety, market
access and compliance as essential for our export focused
businesses. Internal stakeholders reinforced the importance of
health and safety, the operational consequences of compliance
failures and growing reliance on water security and climate
adaptation.
Scales intends to progressively align sustainability reporting
with the GRI Standards from 2026 and has begun mapping
priority topics to the GRI framework to improve comparability,
transparency and depth.
People
Health, safety and wellbeing
Human rights, labour practices
and modern slavery
Employee attraction,
development, retention and
succession
Diversity, equity and inclusion
Community engagement
Environment
Climate change
Water management
Biodiversity
Soil and water pollution
Waste, packaging and circular
economy
Marketplace and
Governance
Corporate governance
Ethical supply chain
Financial performance
Market access, compliance and
regulation
Product quality and safety
18 / Sustainability Report
Scales Corporation Limited

Sustainability Report / 19
Annual Report - Year Ended 31 December 2025
People
Mr Apple People Strategy
Mr Apple is Scales’ largest employer. In 2025, execution against its people strategy has been strong, with meaningful progress
delivered across digitisation, attraction and retention, leadership development, succession planning, performance and reward
and career pathways. The quality and consistency of delivery over the life of the plan provides a solid foundation for the next
phase of people and culture development.
During 2026, Scales will work with Mr Apple and other business units to develop a more aligned Group-wide people approach.
This work will be informed by insights from the employee engagement survey and the refreshed materiality assessment,
ensuring future priorities reflect the evolving needs of our workforce, operating environment and long-term ESG objectives.
Material topics
Health, safety and wellbeing
Human rights, labour practices
and modern slavery
Employee attraction,
development, retention and
succession
Diversity, equity and inclusion
Community engagement
People have been central to Scales’ success to date and will
remain critical to our long-term performance. Our refreshed
materiality assessment reinforces the importance of human
rights, labour practices, health and safety and product quality
as our key social priorities. With a diverse workforce, including
a significant number of migrant workers operating across
multiple regions, maintaining strong ethical standards and
supporting the wellbeing, capability and development of our
people is essential. Through continued investment in safe
workplaces, skills and leadership development, engagement
and community partnerships, we strengthen our culture, meet
our responsibilities and support the livelihoods that underpin
the Group’s ongoing success.

Scales Corporation Limited
20 / Sustainability Report
People (continued)
Pillar2024 initiatives 2025 initiatives 2026 goals
People &
culture
digitalisation
Automation
of people
processes and
transactional
people activity
Commenced phase I of
automating RSE recruitment
and RSE logistics teams via
Airtable
1
.
Reduced transactional
activity, minimised human
error and improved data
flow to internal and external
customers.
Phase II of RSE operations automation completed:
streamlined our RSE logistics processes through
Airtable and achieved significant progress in
automating the generation of individual employment
agreements, loan agreements and direct debit
authority forms. By integrating data fields across
multiple systems including Airtable, Greenhouse
and Ready Workforce, we established an automated
workflow that produces accurate, work specific
documents. This automation was successfully
implemented ahead of the RSE workers’ arrival
in Q1 2026.
Rolled out mid-year reviews online (moving away
from paper) for all permanent employees.
Develop and integrate RSE worker productivity data into
our existing automation workflows (a capability we do not
currently have) to enhance performance visibility, support
data driven decision making and optimise operational
efficiency.
Embed the online performance processes within ELMO
(our human resources information system), including goal
setting, mid-year reviews and end-of-year reviews, to
ensure consistency, visibility and improved organisational
performance management.
Complete the review of safety software solutions,
including vendors offering AI-enabled capability, to
support a system that strengthens our safety culture and
enables every staff member to take ownership of safety.
Attraction &
Retention
Strengthen Employee
Value Proposition
(EVP), authenticity,
trust and talent
connection through
targeted storytelling
and outreach
Targeted recruitment from
Kia Island in 2024 to support
the community to rebuild after
category 5 Tropical Cyclone
Yasa in 2020 that devastated
the tiny island on Fiji’s northern
coast off Vanua Levu.
Rebuilding of the island
is progressing well with a
gratitude video sent to Mr
Apple from the headman of
Yaro Village to highlight the
positive impact the partnership
with Mr Apple has had on the
people and their community.
PNG Partnership: Worked with the PNG
Government to bring workers from the Morobe
Province highlands to join orchard teams in
spring 2025.
RSE: Developed a training programme for PNG
workers to support local horticultural ambitions.
Training programme developed to support the
workers in their horticultural aspirations in their
home.
Communications: Expanded our internal
communications strategy, which included
regular CEO and Senior Leadership updates
in addition to the intranet and company
magazines.
Engagement: Delivered identified people
initiatives by team, department and company
based on the annual engagement survey results.
Local talent: Continue to deepen and embed our youth
engagement strategy by expanding the programmes,
partnerships and experiences that spark early interest in
horticulture as a meaningful and future focused career.
Communications: Embed a clear and consistent
communication framework and channels across
the organisation by defining and empowering key
communication roles including people managers,
department heads and the communications team.
RSE: Diversify our RSE workforce further by building
the partnership with PNG and progress targeted
recruitment from the Morobe and New Ireland
Provinces.
Leadership
Development
Identify and grow
leadership capability
for current and future
roles, strengthening
culture and talent
pipeline
Invested in high performing
and high potential staff.
Delivered coaching sessions.
Piloted the Mr Apple Safety
Leadership Programme,
launching the new Safety
Vision and Safety Values.
Delivered the Mr Apple Leadership Programme
targeting mid–senior level staff.
Extended the Living our Values awards at the
Christmas party to include a Safety Values
Champion (overall annual winner).
Rolled out initiatives in the Safety Roadmap
including full rollout of the Safety Leadership
Programme.
Pilot a Mr Apple team leadership development
programme across the orchards focused on
coaching-led conversations and understanding
working preferences and styles. The aim is to enhance
engagement and strengthen team effectiveness,
with all content aligned to our core values of Future
Thinking, Always Growing and Stronger Together.
Continue providing one-to-one leadership coaching
for our high potential and high performing employees.
Succession
Planning
& Talent
Development
Ensure continuity
of operations
when critical talent
transitions occur
Completed talent mapping for
all permanent staff using the
9-box methodology
2
.
Completed succession plans
for 15+ critical roles.
Delivered workshops for
managers on performance
measurement.
Continued embedding people
processes in ELMO and
upskilling staff on its use.
Embedded people processes in ELMO, which
included upskilling for all staff to optimise the
benefits of automated processes.
Ensure business continuity by developing succession
depth for critical roles, embedding consistent talent
processes and increasing manager capability
and uptake of ELMO to support performance and
development conversations.
Performance &
Reward Management
Build a high-
performance
culture with robust
measurement and
reward mechanisms
Introduced a pay-for-
performance model.
Implemented pay principles.
Automated the end-of-year
remuneration process.
Full implementation of performance and reward
framework within HRIS (linked to digitisation
pillar).
Review the Mr Apple service milestone recognition
programme following the 2-year pilot.
Embed our pay-for-performance approach by
delivering targeted workshops for people leaders
on how to effectively lead in a pay-for-performance
environment.
Conduct a review of our benefits using insights from
the annual engagement survey and benchmarking
against market data to ensure we remain competitive.
Career Pathways
& Personnel
Development
Support employees to
grow careers based
on competencies and
interests
Created and piloted the first
Horticulture Development
Programme with 12 employees
across orchard and post-
harvest.
Delivered the second year of the Horticulture
Development Programme with a newly selected
team.
Build out clear, accessible career pathways across all
permanent roles and develop a visual, interactive tool
that enables employees to explore horizontal, vertical
and diagonal career movement within Mr Apple.

Sustainability Report / 21
Annual Report - Year Ended 31 December 2025
Group Engagement Survey
During the year the Group completed an employee
engagement survey across its New Zealand businesses.
Results confirmed strong and consistent engagement, pride in
teams and confidence in leadership, reflecting the sustained
focus on people and culture across the Group, including the
final year of Mr Apple’s original people strategy.
Insights from the engagement survey, together with the
refreshed materiality assessment, will assist work in 2026 to
develop a more aligned people and engagement approach
across all business units, supporting consistency while
responding to the evolving needs of our workforce and
long-term ESG priorities.
Health, Safety and Wellbeing
Health, safety and wellbeing remained a core focus for
Scales during 2025 as the Group continued to lift capability,
strengthen leadership ownership and embed more consistent
practices across increasingly diverse operations. Independent
health and safety assessments were completed across key
businesses, establishing clear improvement roadmaps and
multi-year plans aligned to differing risk profiles and levels of
organisational maturity.
A strong emphasis was placed on leadership engagement and
learning during the year. This included a well received session
for the Board and senior leaders led by a highly regarded
external health and safety specialist, focused on governance
lessons arising from a major New Zealand industrial safety
failure. This was complemented by targeted health and safety
leadership training delivered by a nationally recognised
provider, followed by a visit to a large, complex agribusiness
with a mature safety system. Together, these initiatives
supported shared learning, practical benchmarking and the
strengthening of safety leadership across the Group.
The Group continues to monitor a core set of health and
safety indicators across its operations, including injury trends,
notifiable events, near miss reporting and corrective action
closure. These measures are reviewed at a business unit
and Group level to support oversight, trend analysis and
prioritisation of critical risks.
As Scales transitions from joint venture structures to
wholly-owned operations, further focus has been placed on
strengthening Group-level governance and consistency while
recognising differences in capability and resourcing across
businesses. Meateor Australia joined the Group Health and
Safety Committee reporting framework at the start of 2026
following its transition to full ownership, supporting greater
alignment, visibility and shared accountability across the
Group.
Community Initiatives
Mr Apple continues to support the community through
targeted initiatives, with businesses investing in partnerships
aligned to our values and long-term social impact:
Strengthened inclusive employment through
Hōhepa
3
, including placing a supported role in post-
harvest operations
Commenced a partnership with Big Brothers Big
Sisters
4
, applying a more structured approach to
community investment and impact measurement
Delivered riparian planting initiatives at Pilos and
Covell orchards, establishing around 900 native
plants to support local waterways and biodiversity
Hosted the inaugural Hort Day Out, with 70+
students experiencing a broad range of horticulture
career pathways
Partnered with Mates4Life
5
to deliver Safety Aider
training, expanding wellbeing support capability
across the business
Partnered with Zoe Hobbs as a values-aligned Mr
Apple brand ambassador
Delivered onsite flu vaccination clinics, with
participation increasing year-on-year
1
Airtable is a cloud-based platform that allows users to organise data, build custom workflows, create interfaces and automate tasks
2
The 9-box methodology is a talent management tool used to plot employees on a 3x3 grid based on their current performance and future potential, and helps to identify
high-potential employees, develop leaders and create targeted development plans
3
Hōhepa is a disability service provider catering for special needs children and adults with an intellectual disability
4
Big Brothers Big Sisters is the world’s largest youth mentoring organisation
5
Mates4Life is a Hawke’s Bay-based initiative focused on suicide prevention, aiming to build life-supporting workplaces and communities through education and training

Scales’ environmental priorities are focused on protecting the
natural resources that underpin our operations and long-term
resilience. The refreshed FY25 materiality assessment confirms
that climate change, water availability and resource efficiency are
the most significant environmental factors influencing the Group’s
performance, particularly across horticulture and other land and
resource intensive operations.
Environment
Material Topics
Climate change
Water management
Biodiversity
Soil and water pollution
Waste, packaging and circular
economy
During the year, the Group continued to strengthen its climate
governance and disclosure, completing its third Climate
Statement. Limited assurance was obtained over Scope 1 and
Scope 2 emissions, supporting confidence in the robustness of
emissions data and reinforcing a disciplined, staged approach
to climate reporting as capability continues to develop.
A core focus across the Group is adaptation and environmental
resilience at an operational level. Businesses continue to
invest in efficient irrigation and water management practices,
improved monitoring and initiatives that support soil health,
biodiversity and waterway protection. At Mr Apple, regenerative
planting trials entered their third year across multiple orchards,
delivering positive early results and providing a practical
foundation to inform potential broader application over time.
Riparian planting initiatives undertaken during the year further
contributed to biodiversity outcomes and the protection of
local waterways.
Scales recognises that environmental improvement in
primary industries is iterative and long-term. Current
initiatives are deliberately focused on learning, piloting
and capability-building, supporting future development
opportunities as scientific understanding, operational
insight and commercial feasibility continue to evolve. These
foundations position the Group to progressively strengthen
environmental performance while maintaining productivity,
product quality and long-term value creation.
Further detail on Scales’ climate-related risks, opportunities,
governance and emissions profile is available in the Group’s
FY25 Climate Statement, to be published in April 2026.
Scales Corporation Limited
22 / Sustainability Report

Certifications and Audits
Completing third party audits and assurance programmes is essential to promoting transparency, accountability and continuous
improvement across our operations. Accordingly, Scales' businesses participate in a wide range of globally recognised certification
and customer audit programmes covering food safety, ethical labour practices, environmental management, security and traceability.
Across the Group, these include, where relevant:
BRCGS Global Standard Food Safety (Global Food Safety
Initiative (GFSI) benchmarked)
GLOBALG.A.P. IFA Version 6 (GFSI benchmarked), covering
food safety, traceability, biodiversity, water management,
sustainability and worker health and welfare
GLOBALG.A.P. Risk Assessment on Social Practice (GRASP)
Supplier Ethical Data Exchange (Sedex) Members Ethical
Trade Audits (SMETA)
LEAF Marque environmental assurance
EcoVadis sustainability ratings
Retailer specific customer standards, including Tesco,
Costco, Albert Heijn, Delhaize, FairPrice and Walmart
Official export assurance programmes, including New
Zealand Secure Export Scheme and importing country
phytosanitary requirements (for countries including China,
Japan, Taiwan, Thailand and the United States)
Ministry of Primary Industries (MPI), United States
Department of Agriculture (USDA) and other market
specific regulatory certifications, depending on product and
geography
MPI Animal Products E-cert electronic certification platform
for official assurances (animal product exports)
Pet Food Industry Association of Australia (PFIAA)
membership and industry audit
PrimeSafe (Victoria) licence to operate and compliance
audits (pet food establishment)
International Air Transport Association (IATA) membership
and staff certifications for airfreight handling
With a global market presence, Scales, as a diversified agribusiness,
focuses on providing customers, investors and regulators with
confidence that our business units consistently meet or exceed market
access, product quality and assurance requirements.
Our approach is to leverage Group capability to share knowledge,
experience and technical expertise across divisions, supporting each
business to obtain and maintain the certifications required by their
customers and export markets.
Scales will continue to invest in its people, systems, infrastructure
and processes to support safe, sustainable products and long-term
business resilience.
Marketplace and Governance
Material Topics
Corporate governance
Ethical supply chain
Financial performance
Market access, compliance and
regulation
Product quality and safety
Together, these frameworks support Scales’ ability to maintain strong product integrity, ethical supply chains, regulatory compliance
and ongoing access to international markets.
Sustainability Report / 23
Annual Report - Year Ended 31 December 2025

Mr Apple established a new export initiative during the year to
support Māori Kiwifruit Growers (MKG) to access international
markets and build sustainable, long-term export pathways. The
initiative reflects a shared commitment to strengthening grower
participation in global value chains while supporting inclusive
economic development and resilient market access for Māori
grown produce.
The programme was formally launched in the United Arab
Emirates in October 2025, led by Te Arikinui Kuini Ngā Wai
Hono i te Pō, the Māori Queen. The launch brought together
Māori growers, international retail partners and government
representatives from Aotearoa New Zealand and the UAE,
marking an important milestone for Māori-led exports into the
Middle East.
Through the initiative, Mr Apple has supported MKG by
leveraging its established distribution networks, in-market
relationships and operational capability to help build demand
and visibility for Māori grown kiwifruit. This support has been
provided in a collaborative and disciplined manner, enabling
increased market presence for MKG fruit while maintaining a
balanced approach to market participation.
Building on the early success of the programme, Mr Apple
is continuing to work with MKG to consider how its teams
and systems can further support future growth as volumes
increase. This includes exploring opportunities to better align
logistics and market engagement, and planning in ways that
create complementary outcomes for Māori growers while
supporting the long-term strength of New Zealand’s kiwifruit
exports.
Market Access Partnership Supporting Māori Kiwifruit Exports
Marketplace and Governance
(continued)
Marking Māori Kiwifruit Growers' first major push into Dubai, in partnership with Zespri and Mr Apple
Te Arikinui Kuini Ngā Wai Hono i te Pō, the Māori
Queen, greeting His Excellency Dr Thani bin Ahmed
Al Zeyoudi, UAE Minister of Foreign Trade
Scales Corporation Limited
24 / Sustainability Report

Annual Report - Year Ended 31 December 2025
/ 25

Divisional
Overview
Scales Corporation Limited
26 / Divisional Overview

This section provides a summary of each of our 3 operating divisions, including their performance
and key operating statistics. In line with our Group results, we focus on the Underlying financial
performance of our business divisions, excluding certain non-cash NZ IFRS and other adjustments.
* Equity accounted.
** Fully consolidated into Scales’ financial results, with Shelby non-controlling interest of $16.7 million deducted from NPAT (2024: $19.3 million).
Shelby Foods**
Petfood ingredients,
United States
(6 7. 5%)
Fayman* *
Edible proteins, Australia
(100% Fayman International /
85% ANZ Exports)
INTERNATIONAL GROUP
Esro Petfood
*
Petfood ingredients,
Netherlands
(50%)
Meateor NZ
*
Petfood ingredients,
New Zealand
(50%)
Meateor Australia**
Petfood ingredients,
Australia
(100%)
Meateor International
**
Petfood ingredients supplier,
Australia & other markets
(100%)
Global Proteins
Overview
Our Global Proteins division produces and markets valuable edible and petfood ingredients. The division
comprises 6 business operations:
Meateor NZ
50 per cent ownership of a petfood
ingredients business with processing
plants in Whakatu, Dunedin and Bluff
Shelby
67.5 per cent ownership of a United
States petfood ingredients business
with owned and toll-processing
plants in Indiana, Iowa, Kansas,
Nebraska and Texas
Meateor International
100 per cent ownership of a supplier
of petfood ingredients from Australia
and other markets
Fayman
100 per cent ownership of the
Australian operations of Fayman
International and 85 per cent
ownership of ANZ Exports, a global
exporter of edible proteins sourced
principally from Australia
Meateor Australia
100 per cent ownership of a
petfood ingredients business with a
processing plant in Melbourne
Esro Petfood
50 per cent ownership of petfood
ingredients business with a
processing plant in the Netherlands
Divisional Overview - Global Proteins / 27
Annual Report - Year Ended 31 December 2025

Scales Corporation Limited
28 / Divisional Overview - Global Proteins
20252024
Key Operational Metrics
Petfood ingredients volume soldMT165,760 152,149
Edible proteins volume soldMT120,673 1 0 9 ,74 2
Financial Performance$000's$000's
Global Proteins revenue
1
47 7, 5 8 7 266,791
Underlying Global Proteins EBITDA 73,865 55,353
Depreciation and amortisation(4,547)(1,652)
Depreciation of right-of-use assets(266)(69)
Underlying Global Proteins EBIT69,052 53,632
Global Proteins EBITDA 98,831 52,987
Global Proteins EBIT95,726 51,266
Capital employed340,253 115,989
ROCE19.8%45.3%
NB: A reconciliation of Underlying to Reported profit measures follows this Divisional Overview section.
Operational and Financial Performance
The table below outlines key operational metrics and the summarised financial performance for Global Proteins.
Volumes Sold (MT 000s)
20212022
2
2023
3
2024
4
2025
4
Edible ProteinsPetfood Ingredients
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
due to low volumes, both of which were operational by the end of 2023
4
2024 and 2025 petfood ingredient volumes include 100% of petfood ingredient volumes from
relevant businesses (i.e. total petfood ingredient volumes controlled directly and indirectly by
Global Proteins) but excludes inter-company sales. Inter-company sales were not excluded in
prior years due to immaterial volumes
Operational Summary
Global Proteins produced a strong result whilst
implementing its growth strategies. Petfood
ingredients volumes increased 9 per cent whilst
edible proteins volumes increased 10 per cent.
There was strong volume growth at Meateor
Australia and Esro Petfood as well as in the edible
proteins business.
149.2
158.6
1 3 7. 5
85.9
152.1
109.7
120.7
165.8

Divisional Overview - Global Proteins / 29
Annual Report - Year Ended 31 December 2025
Financial Summary
There was a 79 per cent increase in revenue compared to last year, to $477.6 million (2024: $266.8 million) and Underlying EBITDA
increased 33 per cent to $73.9 million (2024: $55.4 million). These increases reflected the benefit of increased investments in our joint
venture businesses.
Shelby had a solid performance with the addition of new processing facilities during the year. Meateor Australia and Meateor NZ
performed ahead of forecast with their margins up on expectations. Fayman International had a strong performance, increasing sales
to both the South East Asia and United States markets. In the Netherlands, Esro Petfood continued to progress through its start-up
phase, whilst also transitioning to a new processing facility.
Margin Performance
The graph below shows the growth in unit revenue and Underlying EBITDA for petfood ingredients over the last 5 years.
Revenue and margin per kilogram of volume sold within our petfood ingredients businesses were influenced by changes in business
mix within the division. Whilst there was a slight decrease in revenue / kilogram due to the change in proportionate business mix, we
experienced improved margins across Meateor NZ, Meateor Australia and Esro Petfood.
Petfood Ingredients Revenue and Underlying EBITDA / kg
1
EBITDA / kg (rhs)Revenue / kg (lhs)
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
20242025202120222023
1
Margins may differ slightly from previously reported numbers due to adjustments made to reflect the true operational
performances of the petfood ingredients businesses

Current Initiatives
During 2025, the Global Proteins division continued to make considerable progress towards its strategic growth goal and, as a
result of the increased investments in joint venture businesses, the FY27 Underlying EBITDA target was increased from $70 million
to $85 million.
There has also been excellent progress on the 9 key strategic projects that support Global Proteins’ growth target.
In respect of completed projects:
• The new toll processing plant in the United States is increasing volumes
• The new processing facility in the Netherlands is performing well and producing high quality product
• The blending project in the United States continued to operate successfully during FY25
• The first new in-plant collection and cooling system in the United States is functioning well
• The second new in-plant collection and cooling system in the United States was commissioned in December 2025, ahead of
schedule
• Meateor Australia traded ahead of forecast and is significantly profitable
In respect of other projects:
• We are partnering in the establishment of a fish and poultry petfood ingredients trading joint venture in the United States
• The feasibility study for a second European site is currently paused
• Options for additional capacity in New Zealand are close to finalisation
Each of these initiatives are expected to contribute positively to the Global Proteins earnings target in future periods.
2026
Outlook
We expect Global Proteins to continue to perform strongly and realise the benefits of its increased joint venture investments.
We look forward to providing further updates on the division’s strategic, operational and financial progress.
Scales Corporation Limited
30 / Divisional Overview - Global Proteins

Overview
Our Horticulture division comprises:
Horticulture
Mr Apple
New Zealand’s largest fully
vertically integrated apple
business, based in Hawke’s Bay
Fern Ridge
A fresh produce exporter in
Hawke’s Bay
Profruit
A manufacturer of high-quality apple,
kiwifruit and pear juice concentrates,
located in Hawke’s Bay
During 2025 we operated 2 packhouses, each of which is equipped with high-speed optical grading machines. Mr Apple
also operates 6 coolstores.
Financial Performance and Key Operating Statistics
Financial Summary
The table below shows the financial performance of our Horticulture division for 2025 and 2024.
2025
$000's
2024
$000's
(Restated)
Horticulture revenue341,831 248,875
Underlying EBITDA
Mr Apple56,545 29,768
Fern Ridge2,116 1,624
Profruit6,560 6,302
Underlying Horticulture EBITDA65,220 3 7, 6 9 4
Depreciation and amortisation(13,485)(11,504)
Depreciation of right-of-use assets(9,621)(8,366)
Underlying Horticulture EBIT42,115 17, 8 2 3
Horticulture EBITDA75,275 3 7,7 1 5
Horticulture EBIT52,169 18,261
Capital employed342,706342,714
ROCE12.3%5.4%
NB: A reconciliation of Underlying to Reported measures follows this Divisional overview section.
Horticulture delivered an outstanding result due to increased apple export volumes, increased average prices and a higher proportion
of Premium varieties. The acquisition of Bostock orchards in 2024 also fast-tracked our long-term strategy of investing in apple
varieties targeted to the Asia & Middle East markets.
Profruit delivered another excellent performance underpinned by strong sales prices in its export markets and trading business
Fern Ridge also had a strong year.
Divisional Overview - Horticulture / 31
Annual Report - Year Ended 31 December 2025

20252024202320222021
Orchard
Total planted orchard (at time of harvest)¹Ha.1,1961,0951,150 1,167 1,201
Fully mature equivalent planted orchardHa.9859821,050 1,024 1,050
Apples picked (Mr Apple orchards)TCE 000s4,622 3,833 3,872 4,281 4,757
Apples packed (Mr Apple + external growers
(Hawke's Bay))
TCE 000s4,338 3,499 3,330 3,960 4,430
Exported volume
Mr AppleTCE 000s3,681 3,033 2,733 3,324 3,651
External growersTCE 000s1,624 1,094 1,187 1,256 1,332
To t a l
TCE 000s
5,305 4,126 3,920 4,580 4,983
Mr Apple packout %%80%79%71%78%77%
Total NZ productionTCE 000s21,325 19,052 1 7, 2 6 4 18,777 19,666
Mr Apple own grown volume share of NZ production%17. 3 %15.9%15.8%17.7 %18.6%
Profruit
Juice concentrate soldlitres 000s6,537 7,78 5 5,783 5 ,74 8 6,497
Volumes increased significantly in 2025 aided by very good growing conditions during the 2025 season as well as the integration of the
Bostock orchards, which performed ahead of expectations:
• Gross production was up 21 per cent to 4.62 million TCEs (2024: 3.83 million TCEs)
• Own-grown export volumes were up 21 per cent to 3.68 million TCEs (2024: 3.03 million TCEs)
• Total exported volumes were up 29 per cent to 5.31 million TCEs (2024: 4.13 million TCEs)
The national apple crop grew 21 per cent compared to 2024. Mr Apple continued to contribute significantly to this crop, with production
from its owned and leased orchards in 2025 accounting for 17.3 per cent of New Zealand’s apple exports (2024: 15.9 per cent).
Profruit continued to generate strong export sales and pricing, with the volume of juice concentrate sold reflecting a more normal year
compared to the record volume in 2024.
Orchard Statistics
We continue to monitor and report against various operating statistics, a selection of which are noted below:
¹ Planted orchard at the end of the year was 1,176 hectares (2024: 1,191 hectares)
Scales Corporation Limited
32 / Divisional Overview - Horticulture
Profruit Sales Volumes (L 000s)
202120222023

2024

2025

6,497
5 ,74 8
5,783
7,78 5
6,537

Volumes and Prices
Volumes and prices (on an NZD FOB basis) for 2025 and 2024 are noted below.
Volumes by Variety (TCE 000s)20252024
Premium Varieties
NZ QueenTCE 000s442 494
Pink LadyTCE 000s343 332
Red Sports (Fuji and Royal Gala)TCE 000s1,106 876
Dazzle™ & Posy™TCE 000s714 392
OtherTCE 000s132 92
To t a lTCE 000s2 ,737 2,186
Growth%25%25%
% premium74%72%
Traditional varieties
BraeburnTCE 000s119 134
Royal GalaTCE 000s322 316
OtherTCE 000s502 397
To t a lTCE 000s944 847
Growth%11%(15%)
Total Mr Apple owned and leased orchardsTCE 000s3,681 3,033
Growth%21%11%
Prices by Variety (NZD / TCE (FOB))
Weighted average price for premium varietiesNZD / TCE 52.7 45.6
Weighted average price for traditional varietiesNZD / TCE 41.1 3 7. 6
Total weighted average priceNZD / TCE 49.7 43.4
Volumes of Premium and Traditional varieties in 2025 were up 25 per cent and 11 per cent respectively.
Premium apple volumes accounted for 74 per cent of export apples sold in 2025, an increase on 2024 and continuing our 10-year
upward trend. This aligns with our strategy, positioning us in the right direction to meet our target Premium volume percentage.
Premium apple volumes in 2025 were significantly higher than all previous years and 16 per cent higher than 2021, which was our
previous record year. Pleasingly, this included significant growth in Dazzle
TM
and Posy
TM
sales.
We achieved increases in pricing for both our Premium and Traditional variety apples. This was helped by strong demand for our
apples in our key markets and by the Bostock orchards, which performed ahead of our initial expectations. Favourable exchange rates
were also a positive factor and pricing also benefited from targeted marketing and promotional activity.
Annual Report - Year Ended 31 December 2025
Divisional Overview - Horticulture / 33

Movement in Premium Volumes by Variety (TCE 000s)
NZ QueenPink LadyDazzle™ & Posy™High Colour Fuji & Royal GalaOther
2,500
2,000
1,500
1,000
500
0
2,737
2025
1,742
2,186
2,196
2,366
2,238
2,161
1,901
1,616
1,656
2023
20242022202120202019201820172016
Mr Apple Own Export Volume (TCE 000s)
Premium VarietiesTraditional VarietiesPremium volumes as % of total
2,500
3,000
3,500
4,000
2,000
1,500
1,000
500
0
50%
60%
70%
80%
40%
30%
20%
10%
0%
3,681
2025
3,546
3,545
3,822
3,651
2,733
3,033
202320242022202120202019201820172016
3,324
3,867
3,915
Scales Corporation Limited
34 / Divisional Overview - Horticulture

Premium VarietiesTraditional Varieties
3,000
4,000
2,000
1,000
0
2028F
3,700
202220212023202420252026F2027F
3,651
2,733
3,033
3,681
3,500
3,700
3,324
Forecast Volumes
It is currently projected that Premium varieties will account for approximately 80 per cent 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, which are being grafted onto existing trees and are expected to supply a new wave of growth
The graph below depicts our actual apple volumes from 2020 to 2025 and our forecast volumes from 2026 to 2028.
Markets
Our apples are sought after around the world, with Mr Apple selling to over 130 customers in over 20 countries.
Sales into the Asia and Middle East markets comprised 84 per cent of total export fruit sold, an increase compared to last year
(2024: 79 per cent). Marketing, sales promotions and customer support in these key markets supported the volume increases.
Asia & Middle EastEuropeNorth AmericaUK
Mr Apple - Sales by Region (TCEs)
20242025
3%
4%
8%
5%
79%
84%
10%
7%
Divisional Overview - Horticulture / 35
Annual Report - Year Ended 31 December 2025

Marketing and Branding Developments
We continue to develop not only the Mr Apple brand, but also the high value variety brands such as Dazzle
TM
and Posy
TM
, which achieve
significantly higher NZD FOB prices than Traditional varieties. A selection of consumer marketing activities carried out by our Mr
Apple team to support this strategy included:
• Relaunching our Tmall store, the Alibaba business-to-consumer online marketplace
• Launching Mr Apple channels on RedNote and Douyin, two Chinese social media and e-commerce platforms
• Continuing to provide Dazzle
TM
sponsorship of active events
• Continuing with metro advertising in Shanghai, Guangzhou and Taipei to reach busy commuters
• Launching a store locator on Mr Apple’s official WeChat page to help consumers find our apples with our retail partners
Overall, the team more than doubled Mr Apple’s branded presence in retail stores across our South-East Asian Markets, increased its
in-store point-of-sale material 10-fold and trebled its in-store sampling sessions.
Some of these activities are illustrated in the pictures below.
2026
Outlook
Picking and packing is progressing at Mr Apple for
the 2026 season, with an export crop of around
3.5 million TCEs being forecast. Pricing is forecast
to be positive due to several factors including more
favourable exchange rates. Profruit is also continuing
to experience positive demand.
Dazzle
TM
sponsorship
Dazzle
TM
sponsorship
Scales Corporation Limited
36 / Divisional Overview - Horticulture

Guangzhou and Shanghai metro advertising
Mini show for Queen launch in Hema stores
Annual Report - Year Ended 31 December 2025
Divisional Overview - Horticulture / 37

Operational and Financial Performance
The key operational metrics and the summarised financial performance for the Logistics division for 2025 and 2024 are shown below.
20252024
Key Operational Metrics
Ocean freight volumeTEUs31,468 30,068
Airfreight volumeMT13 ,769 7, 6 1 5
Financial Performance$000's$000's
Revenue119,278 98 ,797
Underlying Logistics EBITDA 7, 5 97 6,884
Depreciation and amortisation(320)(293)
Depreciation of right-of-use assets(791)(731)
Underlying Logistics EBIT6,486 5,860
Logistics EBITDA 7, 5 97 6,884
Logistics EBIT6,486 5,860
Capital employed9,54411,171
ROCE62.6%54.1%
Logistics produced another record result in 2025. Revenue increased 21 per cent to $119.3 million (2024: $98.8 million) and Underlying
EBITDA increased 10 per cent to a record $7.6 million (2024: $6.9 million).
Both ocean freight and airfreight volumes were up on last year, at 5 per cent and 81 per cent respectively, due to continued growth in
the dairy sector as well as the division benefitting from good growing seasons for both apples and cherries.
Its strategy of supporting both internal and external customers is proving to be beneficial to its growth.
NB: A reconciliation of Underlying to Reported profit measures follows this Divisional Overview section.
Overview
The services of Scales Logistics include:
• Ocean freight services to exporters and importers of perishable products, with offices in
Auckland, Christchurch, Tauranga, Hawke’s Bay and Melbourne
• Airfreight services, including chiller and warehousing facilities in both Christchurch and Auckland
Logistics
2026
Outlook
We expect Logistics to continue to contribute
positively in 2026, both financially and strategically, as
we continue to navigate volatility in some trade lanes.
Airfreight demand has been strong in the year-to-date.
Scales Corporation Limited
38 / Divisional Overview - Logistics

Divisional Overview - Logistics / 39
Annual Report - Year Ended 31 December 2025

GroupGlobal Proteins
2025202420252024
(Restated)
$000's$000's$000's$000's
Underlying EBITDA (excluding NZ IFRS 16)124,355 79,366 73,521 55,250
NZ IFRS 16 Leases8,560 12,338 344 103
NZ IFRS 16 Leases - normalisation4,713 - - -
Underlying EBITDA (including NZ IFRS 16)1 3 7, 6 2 8 91,704 73,865 55,353
Other adjustments:
Reversal of impairment/(impairment) of
non-current assets
3,334 (2,707) - -
Cyclone Gabrielle - net costs and proceeds -183 - -
(Loss)/gain on sale(107)4,934 - -
Equity settled employee benefits(1,169)(710) - -
FX loss3,277 - - -
Fayman acquisition and equity accounting22,041 (1,606)22,041 (1,606)
Profruit acquisition and equity accounting(524)(781) - -
Equity accounting losses not recognised2,925 1,755 2,925 1,755
Change in fair value gain on apple inventory4,579 (1,139) - -
Change in gross liability for non-controlling
interests and joint venture options
-(2,515) -(2,515)
Transaction costs(2,123)(1,241) - -
Reported EBITDA169,862 87,876 98,831 52,987
Underlying EBIT (excluding NZ IFRS 16)105,965 65,876 6 8 , 974 53,597
NZ IFRS 16 Leases(2,240)3,053 78 35
NZ IFRS 16 Leases - normalisation4,713 - - -
Underlying EBIT (including NZ IFRS 16)108,438 68,928 69,052 53,632
Other adjustments:
Reversal of impairment/(impairment) of
non-current assets
3,334 (2,707) - -
Cyclone Gabrielle - net costs and proceeds -183 - -
(Loss)/gain on sale(107)4,934 - -
Equity settled employee benefits(1,169)(710) - -
FX loss3,277 - - -
Fayman acquisition and equity accounting2 3 ,74 9 (1,606)2 3 ,74 9 (1,606)
Profruit acquisition and equity accounting(524)(364) - -
Equity accounting losses not recognised2,925 1,755 2,925 1,755
Change in fair value gain on apple inventory4,579 (1,139) - -
Change in gross liability for non-controlling
interests and joint venture options
-(2,515) -(2,515)
Transaction costs(2,123)(1,241) - -
Reported EBIT142,379 65,517 95,726 51,266
The following table provides a reconciliation of Underlying profitability to Reported profitability for the Group and each division.
Reconciliation of Underlying to Reported Profit Measures
Please note that figures in the table above may not sum due to rounding
Scales Corporation Limited
40 / Divisional Overview

HorticultureLogisticsCorporate and eliminations
202520242025202420252024
(Restated)
$000's$000's$000's$000's$000's$000's
53,656 26,778 6,395 5,725 (9,217)(8,387)
6,851 10,916 1,201 1,159 163 160
4,713 - - - - -
65,220 3 7, 6 9 4 7, 5 97 6,884 (9,055)(8,227)
3,334 (2,707) - - - -
-183 - - - -
(107)4,934 - - - -
- - - -(1,169)(710)
3,277 - - - - -
- - - - - -
(524)(781) - - - -
- - - - - -
4,579 (1,139) - - - -
- - - - - -
(504)(4 6 8) - -(1,619)(772)
75,275 3 7,7 1 5 7, 5 97 6,884 (11,842)(9,711)
40,172 15,273 6,076 5,432 (9,256)(8,427)
(2,770)2,549 410 428 42 41
4,713 - - - - -
42,115 17, 8 2 3 6,486 5,860 (9,215)(8,386)
3,334 (2,707) - - - -
-183 - - - -
(107)4,934 - - - -
- - - -(1,169)(710)
3,277 - - - - -
- - - - - -
(524)(364) - - - -
- - - - - -
4,579 (1,139) - - - -
- - - - - -
(504)(4 6 8) - -(1,619)(772)
52,169 18,261 6,486 5,860 (12,002)(9,869)
Divisional Overview / 41
Annual Report - Year Ended 31 December 2025

GroupGlobal Proteins
2025202420252024
(Restated)
$000's$000's$000's$000's
Underlying NPAT (excluding NZ IFRS 16)79,226 53,888 54,614 46,689
NZ IFRS 16 Leases, net of tax(5,025)(518)(51)13
NZ IFRS 16 Leases - normalisation, net of tax3,393 - - -
Underlying NPAT (including NZ IFRS 16)77,594 53,369 54,562 46,702
Other adjustments:
Reversal of impairment/(impairment) of
non-current assets
3,334 (2,707) - -
Cyclone Gabrielle - net costs and proceeds -183 - -
(Loss)/gain on sale(107)4,934 - -
Equity settled employee benefits(1,08 4)(710) - -
FX loss3,277 - - -
Fayman acquisition and equity accounting31,550 (1,141)31,550 (1,141)
Profruit acquisition and equity accounting(378)(168) - -
Equity accounting losses not recognised2,925 1,755 2,925 1,755
Change in fair value gain on apple inventory4,579 (1,139) - -
Change in gross liability for non-controlling
interests and joint venture options
-(2,515) -(2,515)
Transaction costs(2,123)(1,241) - -
Tax deduction change for buildings -(2,065) - -
Tax effect of other NZ IFRS adjustments(1,871)1,094 (959)(528)
Reported NPAT117, 6 9 8 49,648 88,078 44,273
Underlying NPATAS (excluding NZ IFRS 16)63,465 34,576 38,853 2 7, 3 7 7
NZ IFRS 16 Leases, net of tax(5,025)(518)(51)13
NZ IFRS 16 Leases - normalisation, net of tax3,393 - - -
Underlying NPATAS (including NZ IFRS 16)61,834 34,058 38,802 27,391
Other adjustments:
Reversal of impairment/(impairment) of
non-current assets
3,334 (2,707) - -
Cyclone Gabrielle - net costs and proceeds -183 - -
(Loss)/gain on sale(107)4,934 - -
Equity settled employee benefits(1,08 4)(710) - -
FX loss3,277 - - -
Fayman acquisition and equity accounting31,651(1,141)31,651(1,141)
Profruit acquisition and equity accounting(378)(168) - -
Shelby acquisition(1,051) -(1,051) -
Equity accounting losses not recognised2,925 1,755 2,925 1,755
Change in fair value gain on apple inventory4,579 (1,139) - -
Change in gross liability for non-controlling
interests and joint venture options
-(2,515) -(2,515)
Transaction costs(2,123)(1,241) - -
Tax deduction change for buildings -(2,065) - -
Tax effect of other NZ IFRS adjustments(1,871)1,094 (959)(528)
Reported NPAT Attributable to Shareholders100,988 30,337 71,368 24,961
The following table provides a reconciliation of Underlying profitability to Reported profitability for the Group and each division.
Reconciliation of Underlying to Reported Profit Measures (continued)
Please note that figures in the table above may not sum due to rounding
Scales Corporation Limited
42 / Divisional Overview

HorticultureLogisticsCorporate and eliminations
202520242025202420252024
(Restated)
$000's$000's$000's$000's$000's$000's
2 7, 8 0 6 11,022 4,398 3,877 ( 7, 5 9 2 )(7,701)
(4, 826)(361)(13 4)(153)(13)(18)
3,393 - - - - -
26,373 10,661 4,264 3,725 ( 7, 6 0 5)( 7,7 1 8)
3,334 (2,707) - - - -
-183 - - - -
(107)4,934 - - - -
- - - -(1,08 4)(710)
3,277 - - - - -
- - - - - -
(378)(168) - - - -
- - - - - -
4,579 (1,139) - - - -
- - - - - -
(504)(4 6 8) - -(1,619)(772)
-(2,065) - - - -
(912)1,622 - - - -
35,662 10,852 4,264 3,725 (10,308)(9,201)
2 7, 8 0 6 11,022 4,398 3,877 ( 7, 5 9 2 )(7,701)
(4, 826)(361)(13 4)(153)(13)(18)
3,393 - - - - -
26,373 10,661 4,264 3,725 ( 7, 6 0 5)( 7,7 1 8)
3,334 (2,707) - - - -
-183 - - - -
(107)4,934 - - - -
- - - -(1,08 4)(710)
3,277 - - - - -
- - - - - -
(378)(168) - - - -
- - - - - -
- - - - - -
4,579 (1,139) - - - -
- - - - - -
(504)(4 6 8) - -(1,619)(772)
-(2,065) - - - -
(912)1,622 - - - -
35,662 10,852 4,264 3,725 (10,308)(9,201)
Divisional Overview / 43
Annual Report - Year Ended 31 December 2025

Scales Corporation Limited
44

Annual Report - Year Ended 31 December 2025
45

Leadership
Scales Corporation Limited
46 / Leadership Profiles

Management Profiles
Andy Borland
Managing Director
Andy joined Scales in 2007 and
became Managing Director in 2011.
Andy’s full biography is set out in
the following section.
Brett Frankel
President Shelby Foods
Brett established Shelby Foods in 2007 and
has been its President since inception. Brett
has over 25 years’ experience in petfood,
having had a senior procurement role prior
to starting Shelby. He also represents the
third generation of family involvement in the
sector, following in the footsteps of both his
father and grandfather.
Tim Harty
General Manager Meateor Pet Foods
Tim was appointed General Manager
at the inception of the JV with Alliance
in 2019. Tim has had over 20 years’
experience in the export meat industry, in
marketing and operational roles, both in
New Zealand and overseas.
Steve Kennelly
Chief Financial Officer
Steve has been with Scales since 1993 in
a variety of accounting and financial roles.
As CFO, Steve is responsible for finance,
funding, legal, company secretarial and
information technology. Steve is a member
of Chartered Accountants Australia and
New Zealand.
Chantelle Ramage
General Manager Profruit
Chantelle has been with Profruit for
19 years, including 17 as General Manager.
Prior to that Chantelle held Production
Manager and Technical Manager roles
with the Company. Chantelle graduated
from Lincoln University with a Bachelor of
Science, majoring in Food.
Kent Ritchie
CEO Scales Logistics
Kent joined Scales in 1998 and has spent
over 35 years in the shipping industry.
He has been involved in setting up
shipping services from New Zealand, has
experience in all aspects of the transport
industry and has led Scales’ expansion
into the logistics arena.
John Sainsbury
CEO Meateor Group
John has been with Meateor in various
management roles for over 20 years.
Prior to that, John worked in senior
management, marketing and operational
roles in the United States. John was
appointed CEO of Meateor Foods in 2015,
and CEO of Meateor Group in 2019.
Geoff Smith
CEO Horticulture and Logistics
Geoff joined Scales in 2022 from Zespri
where he was Head of New Zealand
Supply. Geoff has extensive experience
across a variety of agribusinesses,
particularly in operations, supply chain,
strategy and investment. Geoff has both
an Honours degree and Doctorate from
Lincoln University.
Andrew van Workum
CEO Mr Apple
Andrew has worked in the apple
industry for over 35 years. He joined
Mr Apple at its inception in 2001 and
prior to that was General Manager
of Mr Apple’s predecessor, Grocorp
Pacific Limited, where he worked for
16 years. He has extensive experience
in the production aspects of the apple
industry and was previously a Director
of Pipfruit New Zealand.
Hamish Davis
Managing Director Fern Ridge Fresh
Hamish joined Fern Ridge in 2001,
becoming Managing Director in 2008.
He has over 35 years’ experience in the
growing and post-harvest sectors of the
apple industry and remains very active in
export sales for the company.
Nadine Tunley
Chief Risk Officer
Nadine was appointed as Scales’ Chief
Risk Officer during 2024. Nadine was
previously a director of Scales and was
also Chair of Scales’ Health & Safety and
Sustainability Committee. Nadine has
extensive primary industry management
and governance experience.
Leadership Profiles / 47
Annual Report - Year Ended 31 December 2025

In order from left to right:
Board of Directors
Mike was appointed to the Board in
April 2023. Mike has over 30 years’
management and governance
experience in the agribusiness
sector. Mike is currently a director
of ANZCO Foods Limited and Kelso
Genetics Limited and Chairs the
Tukituki Water Security Project,
alongside advisory roles with a
number of other privately owned and
publicly listed companies. Mike was
previously Chair of Beef + Lamb New
Zealand and was also New Zealand’s
Special Agricultural Trade Envoy for
6 years. Mike is a member of Scales’
Nominations and Remuneration
Committee and Scales’ Finance and
Treasury Committee.
Mike Petersen
Non-Executive Independent Chair
Tony was appointed to the Board in
August 2023, having previously been
a Director of Scales from 2011 to 2014.
Tony has a private equity and investment
banking background, in New Zealand with
Evergreen Partners and Direct Capital,
and in London with HSBC Investment
Bank. Tony is currently an Independent
Non-Executive Director of Briscoe Group
Limited, where he is also Chair of the Audit
& Risk Committee. In addition to this role,
Tony is currently a Partner and Director of
Evergreen Partners and a Non-Executive
Director of NZ Fine Touring Group. Tony
is Chair of Scales’ Nominations and
Remuneration Committee and of Scales’
Finance and Treasury Committee. Tony is
also a member of Scales’ Audit and Risk
Management Committee.
Tony Batterton
Non-Executive Independent Director
Nick was elected to the Board in
2014, having been appointed a
Director of both Scales’ Storage
& Logistics division and Meateor
in 2012. Nick was previously the
Managing Director and was one of
the founding shareholders of Hellers
Limited, New Zealand’s largest bacon,
ham and small goods company. Nick
is currently the Managing Director
of Harris Farms and Glenturret Farm
in Cheviot, North Canterbury, and is
also a Shareholder and Director of
several private companies. Nick is
a member of Scales’ Audit and Risk
Management Committee.
Nick Harris
Non-Executive Independent Director
Scales Corporation Limited
48 / Leadership Profiles

Paul was appointed to the Board in
2025. Paul has extensive governance
experience from a wide range of
public and private entities. Prior to
his governance career Paul spent
24 years with Deloitte as a Corporate
Finance Partner, primarily working
with large corporates, leading projects
and M&A assignments. Following his
time with Deloitte, Paul was CEO of
Christchurch City Holdings Limited.
Paul is currently a Director of New
Zealand King Salmon Limited, where
he is also Chair of the Audit, Finance,
Risk and Project Development
Committee. In addition to this role,
Paul is currently Chair or a Director
of a number of private companies.
Paul is Chair of Scales’ Audit and Risk
Management Committee.
Paul Munro
Non-Executive Independent Director
Andy joined Scales in 2007 and
became Managing Director in 2011.
Prior to joining Scales he had a
20-year career in banking, with his
final role being Head of Corporate
at Westpac New Zealand. Andy
has overall responsibility for the
strategic direction and day-to-day
management of Scales. In addition
to his Directorships of the Group,
Andy is currently the Chair of Primary
Collaboration New Zealand Limited
and Primary Collaboration New
Zealand (Shanghai) Co. Limited. Andy
is a member of Scales’ Finance and
Treasury Committee and Scales’
Health & Safety and Sustainability
Committee.
Andrew (Andy) Borland
Executive Director
Miranda was appointed to the Board
in August 2022. Miranda has over
20 years' executive and
entrepreneurial experience, centered
on fast moving consumer goods in
New Zealand and globally, including
as the Global Marketing Manager
for Pernod Ricard and co-founder of
Food Nation, a New Zealand based
food manufacturer producing plant-
powered products. Miranda is currently
Executive Chair of Cyprus Enterprises
which operates in covered crops and
intensive horticulture in New Zealand.
Miranda is Chair of Scales’ Health &
Safety and Sustainability Committee.
Miranda Burdon
Non-Executive Independent Director
Leadership Profiles / 49
Annual Report - Year Ended 31 December 2025

Financial
Statements
Scales Corporation Limited
50 / Financial Statements

Contents
Comprehensive income
The income earned and operating expenditure
incurred by the Scales Group during the financial year
(profit or loss) followed by the other comprehensive
income or loss that is taken to reserves in equity.
52
Changes in equity
The opening balance, details of movements during
the year and the balance of each component of
shareholders’ equity at the end of the financial year.
54
Financial position
The Scales Group assets, liabilities and equity
at the end of the financial year.
55
Cash flows
Cash generated and used in the operating, investing
and financing activities of the Scales Group.
56
Notes to the financial statements 59
A. Segment information 61
B. Financial performance64
B1. Revenue
B2. Cost of sales, administration and operating expenses
B3. Other income and losses
B4. Finance cost
B5. Taxation
B6. Foreign currency transactions
C. Key assets 69
C1. Property, plant and equipment
C2. Unharvested agricultural produce
C3. Investments accounted for using the equity method
C4. Goodwill
C5. Inventories
C6. Impairment of assets
C7. S o f t wa r e
D. Capital funding 79
D1. Share capital
D2. Reserves
D3. Dividends attributable to equity holders of the company
D4. Imputation credit account
D5. Earnings per share
E. Financial assets and liabilities 83
E1. Trade and other receivables
E2. Other financial assets
E3. Trade and other payables
E4. Borrowings
E5. Other financial liabilities
E6. Interest rate risk
E7. Foreign currency risk
E8. Categories of financial instruments
E9. Maturity profile of financial liabilities
F. Group structure 90
F1. Subsidiary companies
F2. Non-controlling interests
F3. Acquisition of Australian entities
G. Other 98
G1. Capital commitments
G2. Leases
G3. Related party disclosures
G4. Contingent liabilities
G5. Events occurring after balance date
H. Correction of error and resulting
restatement
102
Financial Statements / 51
Annual Report - Year Ended 31 December 2025

2025
$000’s
2024
$000’s
Note
(Restated)*
RevenueB1899,949 584,627
Cost of salesB2(700,212)(4 3 9,602)
199,737 145,025
Administration and operating expensesB2(81,356)(64, 23 4)
Impairment of property, plant and equipmentC13,118 (2,949)
Share of profit of entities accounted for using the equity methodC38,219 6,402
Other incomeB340,596 7, 8 1 0
Other lossesB3(4 52)(4,178)
EBITDA169,862 87,876
AmortisationC7(1,072)( 74 4)
DepreciationC1(15,611)(12,330)
Depreciation of right-of-use assetG2(10,799)(9,285)
EBIT142,380 65,517
Finance revenue3,036 3,465
Finance costB4(5,383)(4, 819)
Finance cost of lease liabilityG2(4 ,74 0)(3 ,7 74)
Profit before income tax expense135,293 60,389
Income tax expenseB5(17,595)(1 0 ,741)
Profit for the year117, 6 9 8 49,648
Profit for the year is attributable to:
Equity holders of the Company100,988 30,337
Non-controlling interests16,710 19,311
117, 6 9 8 49,648
Earnings per share attributable to equity holders of the company:
Basic earnings per share (cents)D570.7 21.3
Diluted earnings per share (cents)D570.2 21.3
The notes to the financial statements on pages 59 to 102 form part of and should be read in conjunction with this statement.
* The restatements to comparative period are explained in Section H.
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2025
Scales Corporation Limited
52 / Financial Statements

2025
$000’s
2024
$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)1 1 ,74 3
Share of other comprehensive income (loss) of joint ventures C32,661 (4,473)
Income tax relating to share of other comprehensive income of joint venturesC3(242)452
Foreign exchange gain on translating foreign operations 1,584 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 year130,708 29,186
Total comprehensive income for the year attributable to:
Equity holders of the Company113,836 9,680
Non-controlling interests16,872 19,506
130,708 29,186
Consolidated Statement of Comprehensive Income (continued)
for the year ended 31 December 2025
The notes to the financial statements on pages 59 to 102 form part of and should be read in conjunction with this statement.
* The restatements to comparative period are explained in Section H.
Financial Statements / 53
Annual Report - Year Ended 31 December 2025

Share
capitalReserves
Retained
earnings
Attributable
to owners of
the Company
Non-
controlling
interestsTo t a l
Note$000's$000's$000's$000's$000's$000's
Balance at 1 January 2024103,445 99,435 170,472 373,352 11,596 384,948
Correction of error adjustmentH3,887 (4 01)3,486 3,486
Balance at 1 January 2024 (Restated)*103,445 103,322 170,071 376,838 11,596 388,434
Profit for the year (Restated)*- - 30,337 30,337 19,311 49,648
Other comprehensive loss for the year
(Restated)*- (20,657)- (20,657)195 (20,462)
Total comprehensive income for the year
(Restated)*- (20,657)30,337 9,680 19,506 29,186
Reclassification of revaluation reserveD2- (16,182)16,182 - - -
Recognition of share-based paymentsD2- 710 - 710 - 710
Shares soldD1256 - - 256 - 256
Shares fully vestedD1, D22,070 (578)(221)1,271 - 1,271
DividendsD3- - (1 6 , 3 74)(1 6 , 3 74)(17,175)(33,549)
Balance at 31 December 2024 (Restated)*105,771 66,615 199,995 372,381 13,927 386,308
Profit for the year- - 100,988 100,988 16,710 1 1 7, 6 9 8
Other comprehensive income for the year- 12,848 - 12,848 162 13,010
Total comprehensive income for the year- 12,848 100,988 113,836 16,872 130,708
Reclassification of revaluation reserveD2- (8,278)8,278 - - -
Recognition of share-based paymentsD2- 1,169 - 1,169 - 1,169
Shares issuedD15,996 - - 5,996 - 5,996
Shares fully vestedD1, D21,663 (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)(4 3 ,925)
Movements of non-controlling interest- - (22,915)(22,915)(3,080)(25,995)
Balance at 31 December 2025113,430 73,073 257,140 443,643 12,873 456,516
Consolidated Statement of Changes in Equity
for the year ended 31 December 2025
The notes to the financial statements on pages 59 to 102 form part of and should be read in conjunction with this statement.
* The restatements to comparative periods are explained in Section H.
Scales Corporation Limited
54 / Financial Statements

202520242023
Note$000's$000's
(Restated)*
$000’s
(Restated)*
EQUITY
Share capitalD1113,430 105,771 103,445
ReservesD273,073 66,615 103,322
Retained earnings2 5 7,1 4 0 199,995 170,071
Equity attributable to Scales Corporation Limited shareholders443,643 372,381 376,838
Equity attributable to non-controlling interestsF212,873 13,927 11,596
T O TA L EQ U I T Y456,516 386,308 388,434
CURRENT ASSETS
Cash and bank balances64,672 53,753 7 7, 6 3 8
Trade and other receivablesE171,557 38,025 34,029
Current tax assets701 5,363 3,938
Other financial assetsE24,686 2,230 5,989
Unharvested agricultural produceC230,602 26,648 24,222
InventoriesC5119,618 24,962 29,543
Prepayments6,015 3,876 4,337
2 97, 8 51 154,857 179,696
Assets held for sale- 19,100 -
TOTAL CURRENT ASSETS2 97, 8 51 173,957 179,696
NON-CURRENT ASSETS
Property, plant and equipmentC1275,331 245,344 226,060
Investments accounted for using the equity methodC322,439 57,212 63,902
GoodwillC4168,820 40,630 36,972
Defined benefit plan net asset1,063 597 60
Other financial assetsE233,263 3 7,1 8 8 29,077
SoftwareC71,230 1,055 1,160
Right-of-use assetG299,856 59,597 49,572
TOTAL NON-CURRENT ASSETS602,002 441,623 406,803
T O TA L A S S E T S899,853 615,580 586,499
CURRENT LIABILITIES
Trade and other payablesE37 7, 0 3 5 29,852 26,446
Dividend declaredD31 7, 9 97 10,332 6,041
BorrowingsE463 ,759 - -
Purchase price payableF38,140 - -
Current tax liabilities6,986 397 616
Other financial liabilitiesE56,812 41,918 18,524
Lease liabilityG215,971 13,464 10,963
TOTAL CURRENT LIABILITIES196,700 95,963 62,590
NON-CURRENT LIABILITIES
BorrowingsE484,982 41,259 65,647
Purchase price payableF32 8 , 5 74 - -
Deferred tax liabilitiesB520,970 20,441 18,459
Other financial liabilitiesE514,449 18,688 6,699
Lease liabilityG297, 6 6 2 52,921 4 4,670
TOTAL NON-CURRENT LIABILITIES246,637 133,309 135,475
TOTAL LIABILITIES443,337 229,272 198,065
NET ASSETS456,516 386,308 388,434
Consolidated Statement of Financial Position
as at 31 December 2025
The notes to the financial statements on pages 59 to 102 form part of and should be read in conjunction with this statement.
* The restatements to comparative periods are explained in Section H.
Financial Statements / 55
Annual Report - Year Ended 31 December 2025

20252024
Note$000's$000's
Cash flows from operating activities
Cash was provided from:
Receipts from customers886,728 590,424
Government grants received- 25
Dividends and distributions received2,733 1,546
Interest received2,602 3,000
892,063 594,995
Cash was disbursed to:
Payments to suppliers and employees(776,062)(481,705)
Interest paid(10,123)(8,593)
Income tax paid(10,113)( 7,1 4 0)
(796,298)(4 97, 4 3 8)
Net cash provided by operating activities95,765 97,557
Cash flows from investing activities
Cash was provided from:
Advances repaid544 261
Sale of property, plant and equipment and software24,183 34,000
24,727 34,261
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(41,4 3 4)-
Acquisition of subsidiary, net of cash acquiredF3(38,120)(11,080)
Advances to joint ventures(4, 201)(1 7, 3 3 8)
(106,055)(83,358)
Net cash used in investing activities(81,328)(4 9,0 97)
Cash flows from financing activities
Cash was provided from:
Treasury stock sold- 256
Drawdowns of seasonal facility borrowingsE434,000 25,500
Net drawdowns of trade finance facility borrowingsE413,548 -
Drawdowns of term facility borrowingsE440,732 56,000
88,280 81,756
Cash was applied to:
Dividends paidD3(21,414)(12,083)
Dividends paid to non-controlling interestsF2(14,846)(17,175)
Repayment of related party loanF3(13,234)-
Repayments of lease liabilitiesG2(8 ,4 64)(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)
Consolidated Statement of Cash Flows
for the year ended 31 December 2025
The notes to the financial statements on pages 59 to 102 form part of and should be read in conjunction with this statement.
Scales Corporation Limited
56 / Financial Statements

Consolidated Statement of Cash Flows (continued)
for the year ended 31 December 2025
20252024
$000's$000's
Net increase (decrease) in cash10,044 (24,141)
Net foreign exchange difference875 256
Cash and cash equivalents at the beginning of the year53,753 7 7, 6 3 8
Cash and cash equivalents at the end of the year64,672 53,753
Represented by:
Cash and bank balances 64,672 53,753
Cash and cash equivalents at the end of the year64,672 53,753
Net cash generated by operating activities
Reconciliation of profit for the year to net cash generated by operating activities:
Profit for the year 117, 6 9 8 49,648
Non-cash items:
Depreciation (including on right-of-use asset)26,410 21,615
Gain on lease modification(59)(79)
Gain on rights transferred(187)(3,113)
(Impairment reversal) impairment on revaluation(3,118)2,949
Amortisation 1,072 74 4
Share of equity accounted results(8,219)(6,402)
Gain on fair value of equity instrument(4 0, 262)(3,367)
Hedging instruments(4, 3 35)4,790
Loss (gain) on disposal of property, plant and equipment1 74 (1,225)
Share-based payments1,169 710
Change in value of call and put options- 2,515
Deferred tax(3,413)6,304
Interest capitalised into loans(4 3 4)(4 65)
Fair value loss on interest-free related party loans, net of interest income278 1,663
Foreign exchange on related party loans(575)(682)
Operating cash receipts not included in profit for the year:
Dividends received from equity accounted entities2,645 1,545
Changes in net assets and liabilities:
Trade and other receivables(8,898)1,009
Unharvested agricultural produce(3 ,954)(2,426)
Inventories 6,901 24,175
Prepayments(94)884
Trade and other payables2,071 (532)
Current tax assets and liabilities10,895 (2,703)
Net cash provided by operating activities95,765 97, 5 57
The notes to the financial statements on pages 59 to 102 form part of and should be read in conjunction with this statement.
Financial Statements / 57
Annual Report - Year Ended 31 December 2025

Andy Borland, Managing Director Mike Petersen, Chair
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 activities are the principal revenue producing activities of the Group and other activities that are not investing or
financing activities.
Investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents.
Financing activities are 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.
Consolidated Statement of Cash Flows (continued)
for the year ended 31 December 2025
The notes to the financial statements on pages 59 to 102 form part of and should be read in conjunction with this statement.
Scales Corporation Limited
58 / Financial Statements

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.
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.
Notes to the consolidated financial statements
for the year ended 31 December 2025
Notes to the financial statements / 59
Annual Report - Year Ended 31 December 2025

About This Report (continued)
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.
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 18 Presentation 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 1 Presentation 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 8 Accounting
Policies, Changes in Accounting Estimates and Errors and NZ IFRS 7 Financial Instruments: Disclosures. Furthermore, there were
minor amendments to NZ IAS 7 Statement of Cash Flows and NZ IAS 33 Earnings 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.
Scales Corporation Limited
60 / Notes to the financial statements

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 Holding Pty Limited, Meateor Australia Pty Limited, FI
Group Holding Pty Limited group (FI Group Holding 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.
Notes to the financial statements / 61
Annual Report - Year Ended 31 December 2025

A. Segment Information (continued)
Global
ProteinsHorticultureLogisticsOtherEliminationsTo t a l
$000's$000's$000's$000's$000's$000's
2025
Total segment revenue47 7, 5 8 7 341,831 119,278 2,878 (41,625)899,949
Inter-segment revenue- - (37,986)(3,639)41,625 -
Revenue from external customers477,587 341,831 81,292 (761)- 899,949
(Loss) gain on sale of non-current assets(32)(155)13 - - (1 74)
Share of profit of entities accounted for using
the equity method
8,219 - - - - 8,219
(Impairment) impairment reversal of
property, plant and equipment
(83)3,201 - - - 3,118
Gain on fair value of equity investment40,262 - - - - 40,262
Gain on lease modification- 59 - - - 59
EBITDA98,831 75,275 7, 5 97 (11,841)- 169,862
Amortisation expense- (1,001)(58)(13)- (1,072)
Depreciation expense(2,839)(12,4 8 4)(262)(26)- (15,611)
Depreciation of right-of-use asset(266)(9,621)(791)(121)- (10,799)
EBIT95,726 52,169 6,486 (12,001)- 142,380
Finance revenue468 108 43 2,417 - 3,036
Finance costs(1,298)(15)21 (4,091)- (5,383)
Finance cost of lease liability(151)(3,933)(597)(59)- (4 ,74 0)
Income tax expense(6,667)(12,666)(1,689)3,427 - (17,595)
Segment profit (loss) after income tax88,078 35,663 4,264 (10,307)- 117, 6 9 8
Segment assets347,390 465,644 19,870 66,949 - 899,853
Segment liabilities175,817 159,745 1 7, 6 2 5 90,150 - 443,337
Segment carrying value of investment
accounted for using the equity method
22,439 - - - - 22,439
Segment acquisition of property, plant and
equipment and software
6,666 15,245 213 26 - 22,150
Segment acquisition of right-of-use assets10,654 39,511 1,276 32 - 51,473
Scales Corporation Limited
62 / Notes to the financial statements

A. Segment Information (continued)
Global
ProteinsHorticultureLogisticsOtherEliminationsTo t a l
$000's$000's$000's$000's$000's$000's
2024 (Restated)*
Total segment revenue266,791 248,875 98 ,797 3 ,789 (33,625)584,627
Inter-segment revenue- - (30,223)(3,402)33,625 -
Revenue from external customers266,791 248,875 68,574 387 - 584,627
Gain on sale of non-current assets- 1,225 - - - 1,225
Share of profit of entities accounted for
using the equity method
6,039 363 - - - 6,402
Impairment of property, plant and equipment- (2,949)- - - (2,949)
Gain on fair value of equity investment- 3,367 - - --
Gain on lease modification24 47 8 - - 79
EBITDA52,987 3 7,7 1 5 6,884 (9,710)- 87,876
Amortisation expense- (696)(3 4)(14)- ( 74 4)
Depreciation expense(1,652)(10,392)(259)(27)- (12,330)
Depreciation of right-of-use asset(69)(8,366)(731)(119)- (9,285)
EBIT51,266 18,261 5,860 (9,870)- 65,517
Finance revenue661 224 61 2,519 - 3,465
Finance costs(18)45 (76)(4,7 70)- (4, 819)
Finance cost of lease liability(17)(3,052)(640)(65)- (3 ,7 74)
Income tax expense( 7, 6 1 9)(4,627)(1,480)2,985 - (1 0 ,741)
Segment profit (loss) after income tax44,273 10,851 3,725 (9,201)- 49,648
Segment assets166,557 371,829 24,114 53,080 - 615,580
Segment liabilities37,559 131,151 15,612 44,950 - 229,272
Segment carrying value of investment
accounted for using the equity method
57,212 - - - - 57,212
Segment acquisition of property, plant and
equipment and software
5,672 48,311 938 19 - 54,940
Segment acquisition of right of use assets283 16,164 3,638 37 - 20,122

Non-current assets other than financial instruments by geographical location
New ZealandAustraliaUSATo t a l
2025
$000’s
2024
$000’s
2025
$000’s
2024
$000’s
2025
$000’s
2024
$000’s
2025
$000’s
2024
$000’s
(Restated)*(Restated)*
Property, plant and
equipment
228,644 226,649 25,189 21 21,498 1 8 , 6 74 275,331 245,344
Investments
accounted for using
the equity method
22,412 20,078 (0)3 7,1 3 4 27 - 22,439 57,212
Goodwill89,509 7, 6 76 47, 2 0 6 - 32,105 32,954 168,820 40,630
Software1,228 1,055 2 - - - 1,230 1,055
Right-of-use asset89,214 59,382 10,504 - 138 215 99,856 59,597
* The restatements to comparative periods are explained in Section H.
Notes to the financial statements / 63
Annual Report - 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 goods793,370 4 9 6 ,741
Revenue from the rendering of services1 1 2 ,74 5 90,319
Fees and commission710 24
Net foreign exchange loss(11,678)( 7, 2 2 8)
Rental revenue4,802 4,771
899,949 584,627
By market:
New Zealand 123,377 79,729
Asia364,653 178,786
Europe30,226 36,144
North America361,727 284,731
Other19,966 5,237
899,949 584,627
By segment and type:
Horticulture - sale of agricultural produce3 1 7, 6 1 8 233,827
Horticulture - agricultural produce related services19,003 10,277
Horticulture - other5,210 4,771
Global Proteins - sale of pet food ingredients and edible proteins465,652 255,805
Global Proteins - other11,935 10,986
Logistics services81,292 6 8 , 5 74
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.
Scales Corporation Limited
64 / Notes to the financial statements

B1. Revenue (continued)
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 37 Provisions, 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.
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 and fruit juice - 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.
Notes to the financial statements / 65
Annual Report - 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 statements454 359
Other services:
Audit or review related services:
Audit of the Charging Group financial statements- 20
Audit of solvency certificate for Selacs Insurance Limited10 9
Other assurance services and other agreed upon procedures (AUP) engagements
Greenhouse gas emission assurance engagement45 45
Other services:
Greenhouse gas assurance engagement readiness- 45
Non-assurance services:
Taxation compliance10 -
Sheehan & Company CPA, PC (United States):
Audit and review of the financial statements:
Group reporting audit155 144
Review of subsidiary financial statements45 40
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 inventories15,918 23,582
Direct expenses128,234 97, 47 1
Directors' fees678 704
Donations12 12
Electricity4,413 3,667
Employee benefits expense:
Post employment benefits - defined contribution plans1,569 1,220
Post employment benefits - defined benefit plans715 555
Salaries, wages and related benefits113,675 94,423
Other employee benefits2,054 710
Grower payments46,608 34,738
Insurance5,843 5,233
Management fees48 48
Materials and consumables329,583 127,780
Ocean and air freight103,102 90,304
Operating lease expenses1,822 1,287
Packaging20,291 14,382
Provision for write-down of inventories70 786
Repairs and maintenance11,385 5,781
781,568 503,836
Disclosed as:
Cost of sales700,212 439,602
Administration and operating expenses81,356 64,234
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.
Scales Corporation Limited
66 / Notes to the financial statements

B3. Other Income and Losses
Note
20252024
$000's$000's
Dividends88 1
Fair value loss on interest-free related party loans(278)(1,663)
(Loss) gain on disposal of property, plant and equipment (1 74)1,225
Gain on rights transferred187 3,113
Loss on joint ventures call options- (1 74)
Gain on lease modification59 79
Gain on fair value equity investmentF340,262 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 income40,596 7, 8 1 0
Other losses(4 52)(4,178)
40,144 3,632
B4. Finance Cost
Interest on loans4,657 4,654
Other interest416 (5)
Bank facility fees310 170
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.
B5. Taxation
2025
$000’s
2024
$000’s
(Restated)*
Income tax recognised in profit or loss:
Current tax expense22,525 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 loss17, 5 9 5 1 0 ,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 tax135,293 60,389
Income tax expense calculated at applicable corporate tax rates3 6 ,7 74 15,948
Non-assessable income(21,045)(8,890)
Non-deductible expenses3,271 2,099
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 tax112 1,005
17, 5 9 5 1 0 ,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.
* The restatements to comparative period are explained in Section H.
Notes to the financial statements / 67
Annual Report - Year Ended 31 December 2025

Opening
balance
Charged
to profit or
loss
Acquisition
of subsidiary
Charged to
equity
Charged to other
comprehensive
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
produce
7, 4 6 1 1,107 - - - 8,568
Property, plant and equipment
and software
25,523 850 3 ,701 -(1,729)(122)28,223
Trade and other payables(73 4)(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- (4,4 97)
Net deferred tax liability20,441 (3,413)2,027 (1,398)3,435(122)20,970
31 December 2024 (Restated)*
Deferred tax liabilities (assets):
Trade and other receivables(47)(4 5)- - -- (92)
Unharvested agricultural
produce
6,782 679 - - -- 7, 4 6 1
Property, plant and equipment
and software
13 ,790 3,996 2,256 -5,091390 25,523
Trade and other payables(1,097)363 - - -- (73 4)
Lease liability and right-of-use
asset
(1,718)(216)- - -- (1,934)
Other financial assets and
liabilities
74 9 1,527 62 -(12,121)- (9,783)
Net deferred tax liability18,459 6,304 2,318 -( 7,0 3 0)390 20,441
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.
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.
B5. Taxation (continued)
* The restatements to comparative periods are explained in Section H.
Scales Corporation Limited
68 / Notes to the financial statements

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 costTo t a l
$000's$000's$000's$000's$000's$000's
Gross carrying amount
Balance at 1 January 2024 (Restated)*147,339 3 7,1 6 2 87, 3 0 8 14,042 14,397 300,248
Acquisition through business
combination
3,920 - 7, 0 1 9 108 435 11,482
Additions22,562 16,543 15,153 2,709 (2,53 4)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 translation384 - 1,485 4 562 2,435
Balance at 31 December 2024
(Restated)*
128,805 63,169 105,549 16,505 12,860 326,888
Acquisition through business
combination
- - 26,945 306 922 28,173
Additions2,085 3,414 9,948 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)- 48 11 (78)(107)
Balance at 31 December 2025124,217 60,231 140,759 16,698 17,1 6 7 359,072
Accumulated depreciation, and impairment
Balance at 1 January 2024 (Restated)*2,266 6,880 54,299 1 0 ,74 3 - 74 ,1 8 8
Depreciation expense2,033 2,402 6,388 1,507 - 12,330
Disposals- - (3,851)(262)- (4,113)
Revaluation through other
comprehensive income
(1,962)(2,403)- - - (4, 365)
Revaluation gain through profit or loss1,253 1,455 241 - - 2,949
Effect of foreign currency translation- - 552 3 - 555
Balance at 31 December 2024
(Restated)*
3,590 8,334 57,629 11,991 - 81,544
Depreciation expense1,977 3,637 8,321 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, 24 4)132 - - (3,118)
Effect of foreign currency translation- - (115)3 - (112)
Balance at 31 December 2025713 7,090 64,275 11,663 - 8 3 ,741
Net book value
As at 31 December 2024 (Restated)*125,215 54,835 47, 9 2 0 4,514 12,860 245,344
As at 31 December 2025123,504 53,141 76,484 5,035 17,1 6 7 275,331
* The restatements to comparative periods are explained in Section H.
Notes to the financial statements / 69
Annual Report - 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:
Buildings 10 to 50 years
Apple trees 30 years
Plant and equipment 2 to 25 years
Office equipment and motor vehicles 2 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 carried 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 by 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.
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 flows 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.
Scales Corporation Limited
70 / Notes to the financial statements

C1. Property, Plant and Equipment (continued)
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, if they had been recognised under the cost model, is $21,952,000 (2024: $21,217,000).
The apple trees, on owned and leased orchards, have the following planting profile:
Total hectares planted
20252024
Premium varieties:
Dazzle™266 260
NZ Queen158 159
Pink Lady88 100
Red sports (Fuji and Royal Gala)349 349
Other premium107 79
Traditional varieties:
Braeburn15 27
Royal Gala99 112
Other traditional94 105
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 year26,648 24,222
Decrease due to harvest(26,648)(24,222)
Development expenditure2 7, 9 2 1 28,546
Fair value adjustment2,681 (1,898)
Balance at end of the year30,602 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.
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 rates 46% 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.
Notes to the financial statements / 71
Annual Report - Year Ended 31 December 2025

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 activity
Country of
incorporation HoldingBalance date
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 Zealand 50%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 Pty Limited. 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 Pty Limited, Meateor Australia Pty Limited and ANZ Exports Pty Limited.
In December 2025, Shelby SPS LLC was formed and Scales holds a 33.33% shareholding.
Summarised financial information for Meateor Pet Foods Limited Partnership
2025
$000’s
2024
$000’s
Current assets21,700 20,443
Non-current assets34,367 33,305
Current liabilities(8,302)(10,242)
Non-current liabilities(2,941)(3,351)
Net assets44,824 40,155
Group's share in the net assets of equity accounted entities22,412 20,078
Carrying amount of investment in equity accounted entities22,412 20,078
The above amounts of assets and liabilities include the following:
Cash and cash equivalents371 549
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- -
Revenue63,413 60,863
Profit for the year after tax4,904 2,117
Other comprehensive income attributable to the owners of the company1,728 (3,229)
Total comprehensive income6,632 (1,112)
The above profit for the year includes the following:
Depreciation and amortisation1,940 1,643
Interest income3 -
Interest expense481 937
Income tax expense- -
Scales Corporation Limited
72 / Notes to the financial statements

2025
$000’s
2024
$000’s
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 taxation2,453 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 year20,078 21,634
Deferred tax on business combinations made by equity accounted entities16 -
Dividends and distributions paid(1,000)(1,000)
Investment in equity accounted entities22,412 20,078
Underlying financial performance of Meateor Pet Foods Limited Partnership:*
Underlying EBITDA/EBITDA**7, 3 2 2 4,697
Depreciation and amortisation(1,940)(1,643)
Underlying finance revenue/finance revenue3 -
Underlying finance costs/finance cost(4 81)(937)
Income tax expense- -
Underlying NPAT/NPAT4,904 2,117
Share of Meateor Pet Foods Limited Partnership Underlying NPAT included in Group
Underlying EBITDA
2,452 1,059
* “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 (NZIFRS) 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 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- (4 4,4 95)
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- 3 7,07 7
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)- (2 7,78 0)
Non-current financial liabilities (excluding trade and other payables and provisions)- (4,73 8)
Revenue381,379 4 82,730
Profit for the year after tax8,387 10,605
Other comprehensive income attributable to the owners of the company4,682 (2,672)
Total comprehensive income
13,069 7, 9 3 3
C3. Investments Accounted for using the Equity Method (continued)
Notes to the financial statements / 73
Annual Report - Year Ended 31 December 2025

2025
$000’s
2024
$000’s
The above profit for the year includes the following:
Depreciation and amortisation95 56
Interest income234 7
Interest expense1,310 1,910
Income tax expense4,440 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 taxation6,897 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 income5,825 3,697
Carrying value at beginning of the year3 7, 07 7 32,786
Dividends and distributions paid by equity accounted entities(1,645)(545)
Effect of foreign exchange translation502 1,139
Investment acquired(41,759)-
Investment in equity accounted entities- 3 7,07 7
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(4,4 4 0)(6,029)
Underlying NPAT/NPAT8,387 10,605
Share of ANZ Exports Pty Ltd and FI Group Holding Pty Ltd Underlying NPAT
included in Group Underlying EBITDA
4,828 5,270
* “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 (NZIFRS) 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 Meateor Australia Pty Ltd
- Pre acquisition period ending 30 September 2025
Current assets- 20,617
Non-current assets- 32,898
Current liabilities- (1 7,1 6 4)
Non-current liabilities- (34,862)
Net assets
- 1,489
Group's share in the net assets of equity accounted entities- 74 5
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)
C3. Investments Accounted for using the Equity Method (continued)
Summarised financial information for ANZ Exports Pty Ltd and FI Group Holding Pty Ltd
- Pre acquisition period ending 30 September 2025 (continued)
Scales Corporation Limited
74 / Notes to the financial statements

2025
$000’s
2024
$000’s
Revenue47, 2 5 9 42,026
Profit for the year after tax1,823 (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 amortisation2,732 2,852
Interest income29 3,300
Interest expense2,187 4,530
Income tax expense1,763 (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 taxation1,793 (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 translation66 18
Investment acquired(1,831)-
Investment in equity accounted entities- 55
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)
Adjustment
862 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
N PAT
1,823 (620)
Share of Meateor Australia Pty Ltd Underlying NPAT included in Group Underlying EBITDA
1,344 (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.
C3. Investments Accounted for using the Equity Method (continued)
Summarised financial information for Meateor Australia Pty Ltd
- Pre acquisition period ending 30 September 2025 (continued)
Notes to the financial statements / 75
Annual Report - Year Ended 31 December 2025

Summarised financial information for Esro Petfood B.V.
2025
$000's
2024
$000's
Current assets10,611 9,620
Non-current assets20,715 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- -
The above amounts of assets and liabilities include the following:
Cash and cash equivalents28 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)
Revenue31,022 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 amortisation2,864 1,384
Interest expense2,043 1,383
Income tax expense1,209 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.
** 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.
C3. Investments Accounted for using the Equity Method (continued)
Scales Corporation Limited
76 / Notes to the financial statements

Shelby SPS LLC
The Group recognised a $27k share of profit before taxation for Shelby SPS LLC during the year.
C4. Goodwill
20252024
Note$000's$000's
Gross carrying amount
Balance at beginning of the year40,630 36,972
Goodwill recognised on business acquisitionF3129,036 19
Effect of foreign currency exchange differences(846)3,639
Balance at end of the year168,820 40,630
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 - Shelby32,108 32,954
Horticulture - Fern Ridge
5,702 5,702
Horticulture - Profruit
19 19
Logistics
1,955 1,955
168,820 40,630
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 calculations use 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%
C5. Inventories
20252024
$000's$000's
Finished goods 112,761 19,897
Other 6,857 5,065
119,618 24,962
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.
C3. Investments Accounted for using the Equity Method (continued)
Notes to the financial statements / 77
Annual Report - Year Ended 31 December 2025

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.
C7. S o f t w a r e
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 balance10,444 9,197
Accumulated amortisation
Opening balance(8,142)(7,398)
Amortisation expense(1,072)( 74 4)
Closing balance(9, 214)(8,142)
Net book value1,230 1,055
Scales Corporation Limited
78 / Notes to the financial statements

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 issued461,699 475,546
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(3 07, 4 6 3)(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.
Movement in share capital related to share-based payments:
20252024
$000's$000's
Equity-settled employee benefit share scheme vested
Interest-free loan became full recourse857 1,271
Accumulated share option value reclassified from reserve into share capital679 578
Accumulated dividends reclassified from retained earnings into share capital127 221
1,663 2,070
Notes to the financial statements / 79
Annual Report - 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
To t a l
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 2,094 1,039 469 76 103,322
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)*
87,7 76 (24,798)(1,927)1,171 4,099 294 66,615
Other comprehensive (loss) income(3,653)12,291 2,419 - 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)492 3,059 5,683 501 73,073
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.
LT I r o u n dGrant dateVe s ting date
Exercise
price, $
Number of shares
Opening
balanceGrantedFor feited
Vested and
exercised
Closing
balance
FY217-A p r-2 27-A p r-2 53.20 3 07, 4 6 3 - - (3 07, 4 6 3)-
FY2224 -A p r-2 324 -A p r-2 63.33 361,681 - - - 361,681
FY2324-Apr-2424 -A p r-2 72.72 475,546 - - - 475,546
FY2424 -A p r-2 524 -A p r-2 83.18 - 461,699 - - 461,699
To t a l1,144,690461,699 - (307,463)1,298,926
The weighted average share price for shares that vested during 2025 was $4.04.
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.
* The restatements to comparative periods are explained in Section H.
Scales Corporation Limited
80 / Notes to the financial statements

D2. Reserves (continued)
LT I r o u n d
20252024
FY24FY23
The inputs into the “option pricing calculator” are:
Issue date share price, $4.28 3.20
Expected share price volatility, %32 31
Option life, years3 3
Risk-free interest rate, %4.52 4.92
Exercise price, $3.18 2.72
Fair value, at the grant date, $1 .74 1.11
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 (PSR) Scheme (PSR Scheme) to grant
performance rights to key senior management personnel as a long-term incentive programme.
PSR roundGrant dateVe s ting date
Number of rights
Opening
balanceGrantedFor feited
Vested and
exercised
Closing
balance
F Y 2 3 -T 120-Dec-239-Mar-265 6 ,74 8 - - - 5 6 ,74 8
F Y 2 3 -T 220-Dec-232 3 - M a r-2 638,113 - - - 38,113
F Y 2 3 -T 320-Dec-239-Mar-26228,095 - - - 228,095
F Y 2 4 A -T 11-May-2412-Mar-2755,904 - - - 55,904
F Y 2 4 A -T 21-May-2425-Feb-273 7, 6 9 1 - - - 3 7, 6 9 1
F Y 2 4 A -T 31-May-2412-Mar-27228,095 - - - 228,095
F Y 2 4 B -T 14-Dec-2412-Mar-2738,591 - - - 38,591
F Y 2 4 B -T 24-Dec-2425-Feb-2738,591 - - - 38,591
F Y 2 5 -T 1
1-May-2513-Mar-28
- 84,779 - - 84,779
F Y 2 5 -T 2
1-May-2525-Feb-28
- 84,779 - - 84,779
F Y 2 5 -T 3
1-May-2513-Mar-28
- 228,095 - - 228,095
To t a l721,828 397,653 - - 1,119,481
Total Shareholder Returns (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.
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 pro rata)> 8.5%, < 12.5% CAGR
100%= 12.5% CAGR
Tranche 3 - % vesting
0%= 12.5 % CAGR
1% - 99% (straight-line pro rata)> 12.5%, < 31.1% CAGR
100%= 31.1% CAGR
Notes to the financial statements / 81
Annual Report - Year Ended 31 December 2025

The TSR performance tranches are calculated across the following periods:
Round Vesting Period
FY23 - Tranche 1 and 3 20 December 2023 to 11 days after the announcement date of the FY25 Result
FY24 A and B - Tranche 1 and 3 7 March 2024 to 11 days after the announcement date of the FY26 Result
FY25 - Tranche 1 and 3 13 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, %4.46 5.00 4.41 4.53
Expected life, years2.90 2.90 2.30 2.20
Expected share volatility, %*31.75 30.87 32.62 31.12
Fair value, at the grant date, $4.30 3.20 4.05 3.17
* Volatility represents the volatility of Scales’ NZD share price over a 3-year period.
Earnings Per Share (EPS) Hurdle - Tranche 2
The proportion of performance rights subject to the EPS growth hurdle which may vest is dependent on Scales’ EPS 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:
Tranche 2 - % vesting
0%< 5% CAGR
25%= 5% CAGR
26% - 99% (straight-line pro rata)> 5%, < 10% CAGR
100%= 10% CAGR
The EPS performance is calculated across the following periods:
Round Vesting Period
FY23 - Tranche 2 20 December 2023 to the announcement date of the FY25 Result
FY24 - Tranche 2 22 February 2024 to the announcement date of the FY26 Result
FY25 - Tranche 2 26 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 share11,082 6,042
Interim dividend declared - 12.50 (2024: 7.25) cents per share1 7, 9 97 10,332

29,079 1 6 , 3 74
All the above dividends were fully imputed.
The 2025 interim dividend was declared on 3 December 2025 and paid on 23 January 2026.
D2. Reserves (continued)
Scales Corporation Limited
82 / Notes to the financial statements

D4. Imputation Credit Account
20252024
$000's$000's
Balance at end of the year8,854 5,901
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:
100,988 30,337
Weighted average number of shares:
Ordinary shares142,803,805 142,200,207
Effect of dilutive ordinary shares (non-vested Senior Executive Share Scheme)1,116,045 416,550
Weighted average number of Ordinary Shares for diluted earnings per share 143,919,850 142,616,757
Earnings per share (cents):
Basic - continuing70.7 21.3
Diluted - continuing70.2 21.3
E. Financial Assets and Liabilities
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 ECL 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 ECL 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.
* The restatements to comparative period are explained in Section H.
Notes to the financial statements / 83
Annual Report - Year Ended 31 December 2025

Lifetime ECL represents the ECL 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 ECL are 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.
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, 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.
E1. Trade and Other Receivables
20252024
$000's$000's
Trade receivables63,477 33,237
Other receivables1,629 1,416
Receivables from entities accounted for using the equity method862 -
Goods and services tax5,589 3,372
71,557 38,025
E. Financial Assets and Liabilities (continued)
Scales Corporation Limited
84 / Notes to the financial statements