An outstanding performance in Scale Corporations’ horticulture division has resulted in record profits for the agri-group.
Scales Corp net profit grew 112 per cent to NZ$38.9m in the year ending 31 December 2015 compared to 2014, far exceeding the IPO forecasts.
Scales also brought its net debt to NZ$16.2m while investing NZ$15.8m in capital expenditure.
The horticulture division, which includes leading apple exporter Mr Apple, increased its underlying EBITDA 67 per cent from NZ$23.9m in 2014 to NZ$40m in 2015.
“This improvement in profit was largely a result of an excellent performance from our premium varieties,” Andy Borland, Scales Corp managing director said in a company statement. “During the past five years especially we have made significant investment sin our premium varieties and brand positioning, including Mr Apple, Dive, Fern Ridge Fresh and other brands.
“Improved premium varietal mix, especially higher volumes of NZ Queen and Dive, couple with continued strong demand for our premium apples contributed to the NZ FOB pricing for premium varieties increasing by 15 per cent in 2015.”
Scales sold more the 3.15m cartons of its own-grown fruit – a target it had set for 2018.
The group’s storage and logistics, and food ingredients divisions also performed well, with its Auckland coldstore opened on-time in November.
Scales Corp expects has forecast its FY2016 EBITDA of NZ$48m to NZ$55m.