Slide 1: Scales Corporation Half Year Results
SCALES CORPORATION LIMITED GROWING YOUR DIVERSIFIED AGRIBUSINESS Half Year Results For the six months ended 30 June 2016 25 August 2016
Slide 2: Highlights
HIGHLIGHTS Another record result. • Profit for the period up 3% on 1H15: • China Resources welcomed as a 15% shareholder: Strong performance running ahead of our record 1H15 Access support to significant Chinese market. result. Strategic support via board participation. EBITDA* and EBIT* als
Slide 3: Financials
2 FINANCIALS
Slide 4: Financial Overview
FINANCIAL OVERVIEW • Revenue $209.5 million, up 30% on 1H15. • Gross Profit $83.2 million, up 10% on 1H15. • EBITDA $54.2 million, up 3% on 1H15: A strong performance from our Horticulture division reflecting: — Significantly higher than forecast export volumes. — Good growth in premium volumes.
Slide 5: Understanding Our Results
UNDERSTANDING OUR RESULTS Our 1H16 results include both the consolidation of Fern Ridge Produce and a significant accounting change. • Consolidation of Fern Ridge Produce (FRP): In previous periods, FRP was an associate business – Scales equity accounted 50% of NPAT. This was a single line item
Slide 6: Divisional Performance
DIVISIONAL PERFORMANCE Horticulture and Food Ingredients ahead of 1H15. • Horticulture – 12% increase in volumes (premium volumes up 14%). • Storage & Logistics – new initiatives performing well, industry headwinds impacting core business. • Food Ingredients – ongoing strength in petfood ingredients
Slide 7: Balance Sheet
BALANCE SHEET Unaudited Group Audited Strong financial position. $000 1H16 1H15 (Restated) 31 Dec 15 (Restated) • Average Net Debt (average of 30 June 16 and 31 Working Capital Dec 15) $34.2m: Current Assets Improvement of $10.3m on 1H15 ($44.5m). Cash / Overdraft Balances 6,801 10,575 13,832 Trad
Slide 8: Divisional Performance & Outlook
3 DIVISIONAL PERFORMANCE & OUTLOOK
Slide 9: Horticulture
HORTICULTURE • Stellar 12% increase in Export Volumes to more than 3.5m TCEs: Excellent season with no hail and strong packouts. Meeting our 2020 target 4 years ahead of forecast (2020 volume forecast remains unchanged). • Good growth in Premium Variety volumes, up 14% on FY15: Benefitting fro
Slide 10: Horticulture
HORTICULTURE Variety and market mix. • Lower returning orchard has, and will continue to be, redeveloped into high quality premium varieties: Following a large increase in fruit sold to Asia and the Middle East in FY15 we have consolidated our position in those markets whilst building our presence
Slide 11: Storage & Logistics
STORAGE & LOGISTICS Strong performance from new initiatives. • New initiatives (Auckland Coldstore, Liqueo expansion, Balance Cargo) performing well. • Industry headwinds affecting ‘core’ coldstorage operations. • 2H16 EBITDA expected to outperform 2H15 (2H15 results were dragged down by initial tra
Slide 12: Food Ingredients
FOOD INGREDIENTS Steadily improving. • Meateor: Our procurement strategy, focused on New Zealand and Australia and on a range of proteins, continues to deliver positive outcomes with volumes sold up 24% on 1H15. Strong focus on inventory levels and working capital management results in positive
Slide 13: Financial Outlook
FINANCIAL OUTLOOK 4
Slide 14: FY16 Full Year Outlook
FY16 FULL YEAR OUTLOOK Updated guidance – EBITDA of $55m to $62m. • Horticulture: Final crop now known, with good growth in export volumes including premium varieties. Investment and expenditure in crop has been rewarded with significantly higher volumes displaying good colour characteristics.
Slide 15: Disclaimer
DISCLAIMER Please do not read this presentation in isolation This presentation supplements our half year results announcement dated 25 August 2016. It should be read subject to and in conjunction with the additional information in that release, and other material which we have released to the NZX. T