Slide 1: Scales Corporation Half Year Results
SCALES CORPORATION LIMITED GROWING YOUR DIVERSIFIED AGRIBUSINESS Half Year Results For the six months ended 30 June 2017 24 August 2017
Slide 2: Highlights
HIGHLIGHTS Reaffirming FY17 EBITDA guidance. • Excellent result in light of challenging apple season: • OceanAir acquired by Scales Logistics on 1 August 2017: Horticulture volumes demonstrate robustness in the face of challenging climatic conditions. Expands logistics operations in the key port
Slide 3: Financials
2 FINANCIALS
Slide 4: Financial Overview
FINANCIAL OVERVIEW • Revenue $216.7 million, up 3% on 1H16. • Gross Profit $75.5 million, down 9% on 1H16. • EBITDA $48.4 million, down 11% on 1H16: A resilient performance from our Horticulture division: — Like-for-like production down only 5% on record 2016 crop. — Additional on-orchard costs in
Slide 5: Divisional Performance
DIVISIONAL PERFORMANCE All divisions showing resilience in a testing environment. • Horticulture – robust performance in a challenging season. Increased investment in on-orchard costs enabled us to meet customers’ expectations in terms of overall export volumes and quality despite inclement weather.
Slide 6: Balance Sheet
Group BALANCE SHEET $000 Unaudited 1H17 1H16 Audited 31-Dec-16 Robust financial position. Working Capital • Average Net Debt (average of 30 June 17 and Current Assets 31 Dec 16) $51.2m: Cash and Bank Balances 15,124 6,801 6,355 Trade & Other Receivables 66,232 53,572 17,529 Increase of $17.0m on 1
Slide 7: Divisional Performance & Outlook
3 DIVISIONAL PERFORMANCE & OUTLOOK
Slide 8: Horticulture
HORTICULTURE Volumes maintained in a challenging season • Combined Mr Apple export volumes* consistent with last year: Double the average rainfall in 2 months of the growing season as well as ex-Cyclone Cook. Packout of 76% in line with long-term averages illustrating resilience of our orchardin
Slide 9: Horticulture
HORTICULTURE New Zealand is the best place in the world to grow apples. • The Asian and Middle Eastern markets continue to grow: >$15m invested to redevelop 367 hectares (out of 1,042) in the last 10 years into premium varieties, sought after by Asian and Middle Eastern Markets. — Historical redev
Slide 10: Storage & Logistics
STORAGE & LOGISTICS Steady results from Storage & Logistics division. • The acquisition of OceanAir completed on 1 August 2017 adds the key ports of Auckland and Melbourne to our logistics network: This is anticipated to give rise to revenue synergies as we broaden our relationships with existing
Slide 11: Food Ingredients
FOOD INGREDIENTS Continued volume increases. • Meateor: Meateor – Volumes Sold An 8% increase in volumes sold compared (MT 000s) to 1H16. 12.9 12.0 Overall margins influenced by product mix 9.7 and industry competition for specific 8.1 7.6 proteins. Business strategy continues to focus on addi
Slide 12: Financial Outlook
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Slide 13: FY17 Full Year Outlook
FY17 FULL YEAR OUTLOOK Reaffirmed guidance – EBITDA of $55m to $62m. • Horticulture: An excellent outcome in a challenging growing season. Investment in the Mr Apple brand in the Middle East and China markets continues to deliver sales growth. Exported production in line with prior year. Lon
Slide 14: Disclaimer
DISCLAIMER Please do not read this presentation in isolation This presentation supplements our half year results announcement dated 24 August 2017. 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