Scales Corporation NPAT up 59%

Scales Corporation Limited (NZX:SCL.NZ - News) today reported a net profit after tax of $33.2 million from continuing operations for the half year ended 30 June 2015 (1H15), up 59 per cent on the previous half year ended 30 June 2014 (1H14).

Key highlights include:

- NPAT up 59 per cent and EBITDA up 47 per cent compared to 1H14.

- Apple export volumes up 14.6 per cent compared to FY14, and up 16.1 per cent compared to FY15 forecast.

- Storage & Logistics division increases EBITDA by $2.7 million from 1H14.

- All divisions currently trading ahead of 1H14.

Managing Director Andy Borland says "the result reflects strong performance across all divisions and particularly the vertically integrated Mr Apple business, which exceeded expectations across its operations from orchards, packhouses, coolstorage and export marketing".

"The Storage & Logistics division has benefitted from improvements in utilisation. The large Auckland Coldstore project is nearing completion, and together with a new coldstore lease in Christchurch will see an overall increase in storage capacity of 17.4 per cent from the fourth quarter of this year. Scales Logistics and Balance Cargo have contributed improved profitability and assisted Mr Apple and Meateor in securing improved shipping rates. Our bulk liquid storage business, Liqueo, is set to benefit from new contracted business.

"The Food Ingredients division is handling increased year on year volumes in both the petfood and juice concentrate activities.

"These results reflect a considerable effort from the entire Scales team which continues to demonstrate that we deliver world-leading products and services every day. We reiterate guidance that our full year result is likely to produce an EBITDA that is 25 to 35 per cent above our FY15 prospectus forecast of $41.2 million.

"Looking ahead, Scales is well positioned to benefit from expected increases in annual apple crops, improving FX rates, increased coldstorage space, and improving utilisation and efficiency in our bulk liquid storage business."

Scales dividend policy is for interim and final dividends to be split approximately evenly and paid in January and July. Directors will consider payment of an interim dividend later in the calendar year.