Slide 1: Scales Corporation Half Year Results
SCALES CORPORATION LIMITED GROWING YOUR DIVERSIFIED AGRIBUSINESS Half Year Results For the six months ended 30 June 2018 28 August 2018
Slide 2: Highlights
HIGHLIGHTS Strong first half result whilst delivering on refreshed strategy • Positive first half trading across the Group: • FY18 full year EBITDA guidance: An increase in Horticulture volumes and prices. Previously announced EBITDA guidance between $58m and $65m reaffirmed on a like-for-like b
Slide 3: Financials
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Slide 4: Financial Overview
FINANCIAL OVERVIEW A strong first half year of trading • Growth in revenue: $255.2m from All Operations, up 24% on 1H17. $220.1m from Continuing Operations, up 25% on 1H17. • All profit measures also running ahead of 1H17. 1H18 1H17 % chg. Continuing Discontinued All Continuing All Continuing Al
Slide 5: Divisional Performance
DIVISIONAL PERFORMANCE Growth within all divisions • Horticulture – return to more settled growing conditions, resulting in higher volumes, with market dynamics remaining firm. • Storage & Logistics – strong performance, building on prior year operations. • Food Ingredients – reflects favourable tra
Slide 6: Balance Sheet
BALANCE SHEET $000 1H18 Group - Unaudited 1H17 31 Dec 17 (Restated) (Restated) Robust financial position Current Assets Cash and Bank Balances 1,841 15,124 5,690 • Average Net Debt (average of 30 June 2018 and 31 Trade & Other Receivables 73,361 66,232 23,437 December 2017) $60.0m: Agricultural Prod
Slide 7: Divisional Performance & Outlook
3 DIVISIONAL PERFORMANCE & OUTLOOK
Slide 8: Horticulture
HORTICULTURE Increase in both volumes produced and prices achieved • Mr Apple total own grown export volumes up 9% compared to last year: More normal growing conditions experienced. Export packout of 76% in line with long-term averages. • A 17% increase in Premium Variety volumes, including larg
Slide 9: Horticulture
HORTICULTURE Continued penetration of key overseas markets • Ongoing strategy to become a leading apple brand in China: Investment continuing to redevelop our planted land into the premium varieties sought after by Asia and Middle East markets. — Historical redevelopment of premium varieties comin
Slide 10: Storage & Logistics
STORAGE & LOGISTICS Pleasing performance from the Storage & Logistics division • Divisional contribution growth reflects: More ordinary cropping season, giving rise to higher volumes and improved utilisation for Polarcold in particular. Improved trading from the Auckland coldstore. Increased t
Slide 11: Food Ingredients
FOOD INGREDIENTS Volume increases due to market shortage • Meateor: Meateor – Volumes Sold (MT 000s) Continuing increases in volume sold. 16.0 Margins favourably impacted by market conditions 12.9 and overall product mix. 12.0 9.7 Business strategy continues to focus on adding value 8.1 to, an
Slide 12: Sustainability
SUSTAINABILITY 4
Slide 13: Sustainability
SUSTAINABILITY Continuing our sustainability journey • People: Group-wide staff engagement survey conducted throughout August. Three new Health and Safety positions created throughout the Group. Safety culture workshops undertaken at Mr Apple. • Environment: Waste audits being undertaken acr
Slide 14: Strategy
STRATEGY 5
Slide 15: Strategy
STRATEGY Greater focus on pure agribusiness • As previously advised, we have revised our group investment and growth strategy: A greater focus on pure agribusinesses. Seeking opportunities that play to our strengths: — Fully-vertically integrated. — Export-led. — Add value from our China relatio
Slide 16: Financial Outlook
FINANCIAL OUTLOOK 6
Slide 17: FY18 Full Year Outlook
FY18 FULL YEAR OUTLOOK Like-for-like EBITDA guidance of $58m to $65m reaffirmed, likely to be at top end of range • Horticulture: Improved orchard outcomes, with Mr Apple exported volume up 9% on prior year to a record 3.86m TCEs. Ongoing investment in the Mr Apple brand and premium apple variet
Slide 18: Disclaimer
DISCLAIMER Please do not read this presentation in isolation This presentation supplements our half year results announcement dated 28 August 2018. 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