Premium varieties including Dazzle and Posy drive strong performance, with Asia and Middle East markets accounting for 85 per cent of total fruit sales
Scales Corporation has reported a “very strong” financial performance for the first half of the year, including “excellent growth” in its horticulture division, which saw 77.4 per cent increase in earnings to NZ$53.2mn during the same period.
The group, which is New Zealand’s largest apple exporter and operates two major suppliers – Mr Apple New Zealand and Fern Ridge Produce – said 55 per cent of its crop had been sold as of 30 June, just ahead of last year’s figure.
Overall, its half-year results featured underlying EBITDA of NZ$86.7mn, up 43 per cent on the previous half-year figure of NZ$60.5mn.
For the first six months, the group’s net debt was reportedly down to NZ$67.5mn from NZ$81.9mn in the year-earlier period, reflecting an additional 7.5 per cent investment in its pet food operation Shelby for US$24.4mn.
The sale of its Whakatu Coolstore, for a further NZ$24mn, is due to go through in late August 2025.
In its horticulture division, Scales saw significant growth in earnings from increased volumes and prices.
Mr Apple’s total own-grown export volumes were forecast to be 3.7mn tray carton equvalents (TCEs) versus 3.0mn in the first half of last year, an increase of around 21 per cent.
Premium packs a punch
According to Scales, there was a positive impact on grower returns from increased sales of more varied, premium varieties.
“[This] reflects the success of our long-term strategy to invest in apple varieties tailored for key markets in Asia and the Middle East,” it commented.
Premium sales apparently accounted for around three-quarters of total export sale volumes, up from 72 per cent in 2024.
As reported previously, this was mainly due to the addition of its recently acquired Bostock orchards, which it said performed “ahead of expectations” and led to significant increases in output of trademarked varieties Dazzle and Posy.
Continued growth in premium varieties is expected to come from maturing plantings, it added.
And Asia and Middle East sales are expected to comprise 85 per cent of total fruit sold this year, compared with 81 per cent in 2024.
Demand in Asia is understood to be strong due to short supply and the upcoming mid-Autumn Festival.
Scales’ horticulture export packouts to date were approximately 80 per cent, just a percentage point higher on the year.
